You may be able to claim a tax credit for installing energy efficient property
If you installed energy efficient equipment at your home last year, including solar panels, solar water heaters, geothermal heat pumps, small wind turbines, or fuel cell property, you may be able to claim a tax credit on your 2020 tax return.
A tax credit is a dollar-for-dollar reduction of your tax bill. Some tax credits are refundable, meaning that if what you owe in federal taxes is less than your credit amount, you ll receive the remainder as a refund.
A refundable tax credit works like this: If your total income tax is $5,000 and you have a refundable credit of $6,000, the credit will erase the tax due and you ll get $1,000 back. On the other hand, a non-refundable credit will be limited to reducing your tax liability to $0, and you won t get the remaining money as a refund. However, some non-refundable tax credits may be carried back or for