Deductions & credits

No, there's not.

The IRS has a specific order in which credits are to be applied to offset tax.

As far as the credits you’re inquiring about, they’re applied to tax in this order:

  1. Qualified Plug-in Electric Drive Motor Vehicle Credit, Personal use part, Form 8936, Part III

  2. Residential Energy Credits, Form 5695, Part I, then

  3. Alternative Fuel Vehicle Refueling Property Credit, Form 8911.

So, after your Form 8936 credit is applied to tax, any amount of tax remaining will be offset by your Residential Energy Credit.  If your taxes are completely offset at this point, the remaining Residential Energy Credit will carry over.

Your Form 8911 would be applied last, if there’s any tax left to offset.

See the Instructions for Form 8936, Instructions for Form 8911, and Instructions for Form 5695 for more information. 

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