FinancingUp to date · Jan 15, 2026
Tax Credit Carryforward
When a tax credit exceeds your tax liability in a given year, the unused portion can be carried forward and applied to future tax years. The 25D clean energy credit allows unlimited carryforward.
Why It Matters
If you install a $30,000 solar system (30% = $9,000 credit) but only owe $5,000 in federal taxes, you claim $5,000 in year one and carry $4,000 forward to next year.
Related Topics
Related Terms
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
25D Tax Credit
The federal Residential Clean Energy Credit (IRC §25D) providing 30% of the cost of solar panels, battery storage, and other clean energy systems installed on a residence through 2032.