Frequently asked questions about energy efficient home improvements and residential clean energy property credits - Energy Efficient Home Improvement Credit - Timing of credits

 

Updated FAQs were released to the public in Fact Sheet 2025-01 PDF, Jan. 17, 2025. This fact sheet contains all of the FAQs in one downloadable PDF.

Q1. May a taxpayer carry forward an unused credit to a later taxable year? (updated Jan. 17, 2025)

A1. No. 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 for a taxable year, the unused amount of the credit may never be claimed.

Q2. How long does a taxpayer have to claim the credit? (added Jan. 17, 2025)

A2. The credit is allowed for a taxable year for certain amounts a taxpayer pays or incurs during such taxable year. For example, assuming all other requirements have been met for the credit, taxpayers that incur qualifying expenses in taxable year 2025 may claim the credit on their tax returns filed for taxable year 2025. For general information about when to file a tax return, see When to file. For information about filing amended returns, see File an amended return.

Q3. Can a taxpayer who did not claim the credit on a previously filed tax return amend the return to claim the credit? (added Jan. 17, 2025)

A3. Yes. Generally, to claim a refund, a taxpayer must file an amended return within 3 years after the date the original return was filed, or 2 years after the date the tax was paid, whichever is later. For more general information about filing amended returns, see File an amended return.