Hello,
I did some more research and wanted to update the conversation. The answer to the original question is still correct. However, in my follow up question I asked about the carry forward for the Residential Energy Credit. It turns out I misinterpreted the Instructions for Form 5695 to mean the carry forward could only be used in 2021, and any unused credit amount would be lost. That is not accurate. The form is simply used to pull in last year's carry forward (if there is one), and note the amount carried forward to the next tax year (if there is any). Once the Residential Energy Credit is earned, it can be carried forward 20 years per this article.
