U.S. · Form 5695 line 14
Form 5695 line 14 tax liability limit.
The worksheet behind the cap on the residential clean energy credit.
Form 5695 line 14 is “Limitation based on tax liability”: the amount from the Residential Clean Energy Credit Limit Worksheet. It is Form 1040 line 18 minus the listed credits you took. Line 15 then enters the smaller of line 13 or line 14, and goes on Schedule 3, line 5a. The 2025 instructions say you can’t claim this credit for expenditures made after December 31, 2025.
Run the worksheet and lines 13 to 16
Result
Reference table
| Worksheet line | What it holds |
|---|---|
| Line 1 | Form 1040, 1040-SR or 1040-NR, line 18. |
| Line 2 | Total of these credits if taken on your 2025 return: Schedule 3 lines 6l, 1, 2, 6d, 3, 4, 6m, 6f, 6g, 6c and 6h; Form 5695 line 32; and the child tax credit or credit for other dependents on Form 1040 line 19. |
| Line 3 | Line 1 minus line 2. Goes on Form 5695 line 14. Zero or less: enter -0- on lines 14 and 15. |
| Line 15 | The smaller of line 13 or line 14; goes on Schedule 3 (Form 1040), line 5a. |
What the cap does
The residential clean energy credit is nonrefundable. Line 13 adds the 30% credit on solar, wind, geothermal and battery costs (line 6b), any fuel cell credit (line 11) and any carryforward from 2024 (line 12). Line 15 can’t exceed line 14, so a small tax bill limits it. The unused part is carried forward on line 16.
The worksheet
Line 1 is Form 1040 line 18. Line 2 adds the credits and adjustments listed on the worksheet, but only those allowed and taken on your 2025 return: Schedule 3 line 6l, foreign tax credit (line 1), child and dependent care credit (line 2), credit for the elderly or disabled (line 6d), nonrefundable education credits (line 3), retirement savings contributions credit (line 4), the energy efficient home improvement credit from Form 5695 line 32, credit for previously owned clean vehicles (line 6m), clean vehicle credit (line 6f), the child tax credit or credit for other dependents on Form 1040 line 19, mortgage interest credit (line 6g), adoption credit (line 6c) and the D.C. first-time homebuyer credit carryforward (line 6h). Line 3 is line 1 minus line 2, and it is line 14.
Worked example
Form 1040 line 18 is $5,000 and the listed credits are $500, so line 14 is $4,500. Costs of $20,000 give line 6b of $6,000. With no fuel cell credit or carryforward, line 13 is $6,000, line 15 is $4,500 and the unused $1,500 is the line 16 carryforward to 2026. All figures are illustrative.
Limits of this page
The 2025 instructions state that residential clean energy credits can’t be claimed for expenditures made after December 31, 2025, so this page is about 2025 returns and carryforwards. It does not decide whether your property qualifies. Use the instructions and the IRS energy credit FAQs.
Sources
- Instructions for Form 5695 (2025): Line-by-line instructions, worksheets and limits. Read November 2, 2026.
- Form 5695 (2025): The form itself, for exact line wording. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is line 14 on Form 5695?
The limitation based on tax liability, from the Residential Clean Energy Credit Limit Worksheet.
How is line 14 figured?
Form 1040 line 18 minus the total of the listed credits and adjustments you take on your 2025 return.
What if the worksheet result is zero or less?
Enter -0- on Form 5695 lines 14 and 15.
Where does the credit go?
Line 15 is entered on Schedule 3 (Form 1040), line 5a.
Which tax year is this?
The 2025 edition of Form 5695 and its instructions.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.