2024 Energy tax credits

[RWG1950]

Customer installed new Furnace and Air Conditioner in 2024. Between these, costs amounted to about $16-K.
Although the taxpayer appears to qualify for the full $1,200 credit, she has only $948 of tax for the year on her return.
Is the non-refundable difference of $252 lost or can it be carried forward to a future tax year?
Thanks for comments.

[Twin Turbo Z]

From the IRS page on energy credits.

The credit is nonrefundable, so the credit amount you receive can't exceed the amount you owe in tax. You can carry forward any excess unused credit, though, and apply it to reduce the tax you owe in future years. Do not include interest paid including loan origination fees.

[TaxGuyBill]

It is lost.

The citation that Twin Turbo gave you was for the " Residential Clean Energy Credit" (solar panels, etc.). However, a furnace and AC is part of the "Energy efficient home improvement credit", which does not carry forward.



The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit