MindyB
Expert Alumni

Deductions & credits

The energy credit on Form 5695 is indeed a credit, not a deduction.  It will appear on Schedule 3, Line 5b and be carried to 1040 Line 20.  The credit could be limited if you don't have enough tax to absorb it (it's nonrefundable), but that calculation occurs on the Form 5695 itself on the limit smart worksheet above line 31, so you should be getting the full credit.