IRS rejected my $2500 PIP credit.

That seems to be an occasional issue (if I understand it correctly) with people who install solar panels/systems on their house- the full 30% fed tax credit can't be claimed because it exceeds the amount of taxes paid out.

 

direct credit I mean...you buy the PHV car full price and you or dealer get a check for $7500 irrespective of taxes. I think cash for clunkers worked this way, the Feds $$ went to the dealer. But probably no change, I think. If someone in Congress tried to bring this up, I think the repubs would say fine but we reduce the $7500 to less money because $7500 now seems too much money, let's be honest, although PiP at $2500 credit is reasonable.

 

But... The Federal tax credit for solar can be used over a 2 year period. Say you have a $6,000 tax credit for solar install, but only owe $4,500 in Fed taxes after all other deductions have been taken, you can get a credit of $4,500 this year and take the other $1,500 on next years taxes. Just went through the process for my 2012 taxes. I was able to use both the solar and the credit for the PiP last year as I am just a poor retired guy who ends up actually paying taxes. Now if I made a few million each year I would probably not been able to get the credit... LOL!