You don't get the $2k HVAC credit if you install a solar panel system the same year?

[Tanquen]

Is this true?

The issue isn't that you "don't owe taxes"—it’s that the Solar Credit is "cutting in line" and eating up your liability before the HVAC credit gets a turn.

This is a specific quirk in the IRS Form 5695 order of operations that results in the "Solar Trap."

Here is exactly what is happening to your $6,000–$8,000 of liability:

1. The "Stacking Order" (The Root Cause)

The IRS forces tax credits to be applied in a specific order. On Form 5695:

• Part I is the Solar/Battery Credit ($16,184).

• Part II is the HVAC Credit ($2,000).

[AnnetteB6]

Yes, the information you showed in your question is true.  

It is possible that if you are claiming a Residential Clean Energy Credit for solar panel installation and an Energy Efficient Home Improvement Credit for installing an energy efficient HVAC system that you will not be able to claim the Energy Efficient Home Improvement Credit if your tax liability is reduced to zero by the Residential Clean Energy Credit for solar installations.

Form 5695 Residential Energy Credits is structured in such a way that the credit for solar installations is taken into account first.  If all of this credit is not used, it can be carried forward to a future tax year.  But, when this happens, the HVAC credit is essentially lost because there is no tax liability left and there is no carry forward provision for that credit.  

[Tanquen]

Unfortunately it doesn't describe what part of the credit is coming from what it simply states there will be an additional amount rolled over in 2026. It seems to imply that I'll both.

I have to check this online because they haven't added this to the desktop version and have only stated it may come this week. So I was just checking or testing with the online version but I'm not going to pay $80 or whatever to use the online version when I've already paid for the desktop version.

Good news! You qualify for a home energy credit of $13,818.
An additional $4,883 of your credit will be carried forward to 2026. Additional entries on your return may change these amounts.

[AmeliesUncle · Accepted solution]

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@Tanquen wrote:

Is this true?

The issue isn't that you "don't owe taxes"—it’s that the Solar Credit is "cutting in line" and eating up your liability before the HVAC credit gets a turn.

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No, it is not true.

If you look at the Instructions for line 14 of Form 5695 (which determines how much of the solar credit can be used), you'll see the list of credits that come 'first', which includes the nonrefundable credit on line 32 of Form 5695 (which includes the heat pump coming first).

https://www.irs.gov/instructions/i5695#en_US_2025_publink100078809