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Form 5695 residential energy credit

I owe $2500 on my 2016 Federal. My 2016 residential energy credit is $7700. Why can't the $2500 be deducted from my $7700 credit for 2016? Why is it stating the $7700 can only be used as a credit for 2017?
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Form 5695 residential energy credit

The residential energy tax credit can only be used to reduce income tax. It cannot be used to offset other taxes such as self-employment tax, early withdrawal tax penalty, etc...

The unused credit can be carried over to future years.

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