Does the residential solar credit offset the credit for alternative minimum tax paid in prior year?

[mabmeador]

I see no increase in my refund when I entered the solar energy costs.  It looks like tracing it through that it is offsetting the AMT credit for tax paid in prior year.  Is this correct?

[JohnW222]

No, the Prior Year Minimum Tax Credit should have no effect on your credit from your Form 5695 energy credit.

It is possible that, if a previous credit or credits have offset your tentative tax, your energy credit wouldn’t be applied this year, but could be carried over to tax year 2020.

To see the prioritization of credits – that is, the credits that would be applied to tax before the Form 5695 credit – please see the Residential Energy Efficient Property Credit Limit Worksheet—Line 14 in the Instructions for Form 5695.

[mabmeador]

When I enter the solar amount, Turbo Tax is definitely reducing the AMT credit so that the refund is staying the same and I have not offset all the tax I paid.  Is this an error?

[JosephF8]

Both of these credits are non-refundable credits.

This means that they are limited (along with any other non-refundable credits) to the amount of tax liability on your return.