Energy Tax Credit Carryover

[SCswede]

I have a 2023 unused energy tax credit because I maxed out on the $600 limit for AC's but I do not see the carryover to 2024 on the carryover worksheet. Am I missing something? Thanks.

[DoninGA]

There is not a carry forward for a Energy Efficient Home Improvement Credit such as a A/C unit.

Only a Residential Clean Energy Credit can be carried forward to the next tax year, such as solar.

[SCswede]

I'm not a tax accountant but see below for an excerpt that indicates that unused energy tax credit can be used in future years. Just looking for clarification. Thanks

Written by Riley Adams, CPA • Reviewed by a TurboTax CPAUpdated for Tax Year 2023 • December 10, 2023 3:20 PM

Are energy tax credits refundable?

Energy tax credits aren’t refundable tax credits. This means that you can reduce your total tax to zero if you have a large enough credit. But, you can’t get any excess credit amount as a payment to you on your tax return if you have more energy credit than your total tax. Any unused energy tax credit claimed on your tax return can roll forward to future years and offset tax liability in those years.

[DoninGA]

@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.

[DoninGA]

@SCswede IRS website - https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improv...

[SCswede]

Thanks for further clarifying, appreciate your help.