SESK: Stuff Everyone Should Know · sesk.info/solar-irs-carryforward
If your tax liability was too low to use the whole 2025 solar credit, what could you do?
Carry the unused part forward to 2026.
- Get it as a cash refund
- Carry the unused part forward to 2026 ✔
- Lose it permanently
Why: The credit was limited by your tax liability. The IRS instructions say you can carry the unused portion to the next year.
Huh, didn't know that: Only expenditures through 2025 count, even though the unused credit can be carried to 2026.
Why does the IRS hate Sherlock Holmes? Because he makes too many deductions.
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References
Answer: Carry the unused part forward to 2026. The credit was limited by your tax liability. The IRS instructions say you can carry the unused portion to the next year.
- IRS: Instructions for Form 5695 (2025) www.irs.gov/instructions/i5695
you can carry the unused portion of the credit to 2026
Checked 2026-10-10.
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