@SCswede IRS website for FAQ's concerning the Residential Energy Credits - https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improv...
Q4. May a taxpayer carry forward unused credits to another tax year? (added December 22, 2022)
A4. 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.
