U.S. · Form 5695 line 16
Form 5695 line 16 carryforward to 2026.
What happens to the part of the credit your tax bill cannot absorb.
Form 5695 line 16 is “Credit carryforward to 2026.” If line 15 is less than line 13, you subtract line 15 from line 13 and the result is carried forward. The instructions say that if line 14 (your tax limit) is less than line 13, you can carry the unused portion of the residential clean energy credit to 2026, and you should file the form even if you can’t use any of the credit in 2025.
Find line 16
Result
Reference table
| Line | What it holds |
|---|---|
| Line 12 | Credit carryforward from your 2024 Form 5695, line 16. |
| Line 13 | Lines 6b, 11 and 12 added. |
| Line 14 | Limitation based on tax liability (worksheet). |
| Line 15 | The smaller of line 13 or line 14; to Schedule 3 line 5a. |
| Line 16 | Line 13 minus line 15, if line 15 is less than line 13. |
How the carryforward arises
Line 6b is 30% of the qualifying costs on lines 1 to 5b, line 11 is the fuel cell credit and line 12 is any carryforward from 2024. Their total is line 13. Line 14 is the tax limit, and line 15 is the smaller of the two. If line 13 is the bigger one, the difference is line 16. The same form also notes: skip lines 1 through 11 if you only have a credit carryforward from 2024.
Filing when you can use none of it
The instructions say to file Form 5695 even if you can’t use any of your credit in 2025. That is how the unused amount is recorded as the line 16 carryforward.
Worked example
Costs of $25,000 give line 6b of $7,500. Adding a $1,000 carryforward from 2024, line 13 is $8,500. If Form 1040 line 18 is $3,000 with no listed credits, line 14 is $3,000, line 15 is $3,000 and line 16 is $5,500. All figures are illustrative.
Limits of this page
The 2025 instructions say residential clean energy credits can’t be claimed for expenditures made after December 31, 2025, so a carryforward is the unused part of earlier credit. Read the instructions on when the 2026 return may use it; this page does not.
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 16 on Form 5695?
The residential clean energy credit carryforward to 2026: line 13 minus line 15 when line 15 is less than line 13.
When can I carry the credit forward?
When line 14 is less than line 13, meaning your tax limit is smaller than your total credit.
Do I file Form 5695 if I can’t use any credit?
Yes. The instructions say to file the form even if you can’t use any of the credit in 2025.
Where does a prior carryforward go?
Line 12, from your 2024 Form 5695 line 16.
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.