With the 30% Federal Residential Clean Energy Credit set to expire in 2025, I am curious about how installing solar in 2025 affects other deductions and credits. For instance, if one has tax withholdings of $12,000 but is eligible for $18000 in the solar credits, this credit technically wipes your tax liability for the year with excess carried over to future years(?). However, how does this affect your other credits (e.g., Child Tax Credit) or other deductions like charitable contributions, qualifying education or health expenses, etc.? Can you still claim any of these other deductions if you effectively no longer have any taxes to pay after the solar credits covers all tax liabilities. I understand that in this scenario, you'll get the $12,000 in refund and the outstanding $6,000 carried over to next tax year(?). But do you also get to carry other credits and deductions over to next year? Or can you elect to take those credits and deductions in the current year to be able to carry a larger proportion of the solar credits over to future years?
Finally, does the expiration of the solar credits by the end of 2025 affect one's eligibility for those credits carried over to future years?
Thank you.
