May a taxpayer carry forward unused credits to another tax year?
Per IRS guidance, the Energy Efficient Home Improvement Credit may not be carried forward, but the Residential Clean Energy Credit may be carried forward.
May a Taxpayer carry forward credit to another tax year?
The rules vary by credit.
- Under the Energy Efficient Home Improvement Credit: a taxpayer may not carry the credit forward. Thus, if a taxpayer does not have sufficient tax liability to claim all or a portion of the credit in the year in which the related property for which the qualifying expenditure is placed in service, the unused amount of the credit may never be claimed.
- Under the Residential Clean Energy Property Credit: a taxpayer may carry forward the unused amount of the credit to reduce tax liability in future tax years.
Click here for IRS information on energy credits.
Click here for additional IRS information on energy-efficient home improvements.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
