Form 5695 Energy Credits

D
interleaver Seoton? D> Attach to Form 1040. p> See Instructions on back.

1980

Name(s) as shown on Form 1040

Your social security number

Enter in the space below the address of your principal residence on which the credit is claimed if it is different from the address shown on Form 1040.

Fill in your energy conservation costs (but do not include repair or maintenance costs).
If you have an energy credit carryover from a previous tax year and no energy savings costs this year, skip to Part Ill, line 16.

A. Answer the following question: Was your principal residence substantially completed before April 20, 19777. .

- [7 Yes [] No

B. If you checked the “NO” box, you CANNOT claim an energy credit for conservation cost. Do NOT fill in lines 1

through 7 of this form.

1 Energy Conservation Items:

a Insulation. 2 6 6 6 ew ww ee et
b Storm (or thermal) windows or doors. «6 6 6 ee ee ee ee ee ee ee
ce Caulking or weatherstripping. «©. 6 6 6 6 ee wee ee ee ee ee
d A furnace replacement burner that reduces the amount of fuelused. . 2. 2. 2 1 1 ee ee
e A device for modifying flue openings to make a heating system more efficient. . . . . . « «
f An electrical or mechanical furnace ignition system that replaces a gas pilotlight. . . . . . .
g Athermostat with an automatic setback. © 2. 6. 6 6 ee ee ee ee ee he
h A meter that shows the cost of energy used. . 6 1 1 ew ee ee ee
2 Total (add lines lathrough Ih). 2 6 1 ww we ee ee eee ee ee
3 Maximum amount 2 6 6 6 6 ee we ee ee ee ee ee ee ee

4 Enter the total energy conservation costs for this residence from your 1978 and 1979 Form 5695, line 2.
5 Subtract line 4 from line 3 (If line 4 is more than line 3, do not complete any more of this part. You

cannot claim any more energy conservation credit for this residence.). . . . 2. 2 se se
6 Enter the amount on line 2 or line 5, whicheverisless. . 2 2 6 ee se ee ee ee ee

7_ Enter 15% of line 6 here and include in amountonline15 below. . . . . - » » - - ss

Zz

= lele_lelelofe hele

$2,000 | 00

Fill in your renewable energy source costs (but do not include repair or maintenance costs).
If you have an energy credit carryover from a previous tax year and no energy savings costs this year, skip to P:

art Ill, line 16.

8 Renewable Energy Source Items:

N

8a

a Solar 6 6 6 ew ee ee ee ee ee ee ee

b Geothermal 2 6 6 ww ee ee ee ee ee ee ee ew eee | 8D

Wind 2 6 ew ee ee ee ee ee ee ee ee ee | BC __
9 Total (add lines 8a through 8c). 2 ww ee ee ee ee ee ee ee LD —
10 Maximum amount. . 6 6 eee ee ee ee ee ee ee ee ew ew ww  |2O | _ $10,000 | 00
11 Enter the total renewable energy source costs for this residence from your 1978 Form 5695, line 5 and

1979 Form 5695, lineQ. 2 6 ew 11 | —_
12 Subtract line 11 from line 10 (if line 11 is more than line 10, do not complete any more of this part. You

cannot claim any more renewable energy source cost credit for this residence). . . . . . . . |_22) _
13 Enter amount on line 9 or line 12, whichever isless. . 2 1. 6 ee ee ee ee ee Ld __
14 Enter 40% of line 13 here and include in amount on line 15 below. . . 14
Fill in this part to figure the limitation
15 Add line 7 and line 14. If less than $10, enterzero. «©. 1 1 we ee ee ee we ee | _
16 Enter your energy credit carryover from a previous tax year... 6 ee ee ee ee ee | —_
17 Addlines15and16. . . 2 2 we ee ee 17 —
18 Enter the amount of tax shown on Form 1040, line37. 2. 6 2 2 ee ee ee ee ee [8 _
19 Add lines 38 through 44 from Form 1040 andenterthetotal. . 2. 2 2. 1 we ee ee |_19 | _
20 Subtract line 19 from line 18. If zero or less, enterzero. . . . . we | 20 _
21 Residential energy credit. Enter the amount on fine 17 or line 20, whichever i is less. Also, | enter this

amount on Form 1040, line 45.» we ~ se ~. J 21

313-217-1

Form 5695 (1980)


General Instructions

Two energy credits make up the residen-
tial energy credit, each with its own condi-
tions and limits. These credits are based
1) Costs for home energy conserva:
tion, and (2) Costs for renewable energy
source property.

The credit is based on the cost of items
installed in your principal residence after
April 19, 1977, and before January 1,
1986. The cost of the items includes the
cost of installing them.

Qualified expenditures financed with
nontaxable Federal, State, or other grants
cannot be used to figure the energy credit.

Purpose.—Use this form to figure your
residential energy credit if you had quali-
fied energy saving items installed in your
principal residence. The instructions below
list conditions you must meet to take the
credit. If you have an energy credit
carryover from the previous tax year and
no energy saving costs this year, fill in only
Part Ill of the form. Attach Form 5695 to
your tax return. For more information,
please get Publication 903, Energy Credits
for Individuals.

What is your principal residence?—To
qualify as your principal residence, your
residence must meet all of the conditions
below.

@ It must be the home where you and
your family live (you may own it or
rent it from another person).

© It must be in the United States.

Asummer or vacation home does not
qualify.

If you live in a condominium or coopera-
tive housing corporation dwelling unit, it
may qualify. Please get Publication 903 for
more details.

If you and another person own and use
different principal residences and share
the cost of qualified energy conservation
property or renewable energy source
property intended for joint use, each of
you may claim the energy credit as a
separate taxpayer. Divide the amount of
qualified expense among each person on
the basis of their share of the contribution
to the total cost. This type of expenditure
is effective if made after April 1, 1980.

For energy conservation items to qualify,
your principal residence must have been
substantially completed before April 20,
1977. A dwelling unit is considered
substantially completed when it can be
used as a personal residence even
though minor items remain unfinished.

Note: You may claim the maximum
credit on each principal residence you live
in during the tax year. See the instructions
for figuring the credit for more than one
principal residence.

What are energy saving items?—You can
take the credit for two kinds of energy
saving items: energy conservation items
and renewable energy source items.

Energy conservation items are limited to:

© insulation (fiberglass, cellulose, etc.)

for ceilings, walls, floors, roofs, water
heaters, etc.

© storm (or thermal) windows or doors

for the outside of your residence.

@ caulking or weatherstripping for

windows or doors for the outside of
your residence,

© a furnace replacement burner that
reduces the amount of fuels used.

© a device for modifying flue openings
to make a heating system more
efficient.

@ an electrical or mechanical furnace
ignition system that replaces a gas
pilot light.

© a thermostat with an automatic
setback.

© a meter that shows the cost of energy
used.

To take the credit for an energy conser-

vation item, you must:

@ install them in your principal resi-
dence which was substantially com-
pleted before April 20, 1977,

@ be the first one to use the item, and

© expect it to last at least 3 years.

The credit for energy conservation items

cannot be more than $300.

Renewable energy source items include
solar, wind, and geothermal energy items
which heat or coo! your principal re:
or provide hot water or electricity for it.

Examples of solar energy items include:

© collectors,

® rockbeds,

@ heat exchangers, and

@ solar panels installed on roofs (in-
cluding those installed as a roof or
part of a roof).

An example of an item that uses wind
energy is a windmill that produces energy
in any form (usually electricity) for your
residence,

To take the credit for a renewable energy
source item, you must:

© be the first one to use the item, and

© expect it to last at least 5 years.

The credit for renewable energy source
items cannot be more than $4,000.

What items are NOT eligible for the
energy credit?—You cannot take the credit
for items such as the following:

© carpeting;

© drapes;

@ wood paneling;
e
e

wood or peat-burning stoves;

hydrogen fueled residential equip-

ment;
@ siding for the outside of your resi-
dence;
heat pump (both air and water);

© fluorescent replacement lighting

system;

@ replacement boilers and furnaces,

and

@ swimming pools used to store energy.

Figuring the credit for more than one
principal residence,—You can take the
maximum credit for each principal resi-
dence you live in. If you use all of your
credit for one residence and then move,
you may take the maximum credit amount
on your next residence.

For example, if you sold your principal
residence in May of 1980 and bought
another in June, you would be entitled to
take up to $300 credit on each residence
for energy conservation items.

To figure your allowable 1980 energy
credit for more than one principal resi-
dence, follow these instructions:

‘YE US. GOVERNMENT PRINTING OFFICE : 198-0-313-217

(1) Fill out Part I or Il on a separate
Form 5695 for each principal
residence,

(2) Enter the total of all parts on line 15
of one of the forms.

(3) In the space above line 15, write
“More than one principal resi-
dence.”

(4) Attach all forms to your return.

Caution: You should keep a copy of each
Form 5695 that you file for your records.
For example, if you sell your principal
residence, you will need to know the
amount of the credit claimed in prior tax
years. You must reduce the basis of your
principal residence by the amount of
energy credit taken against your tax, if the
items for which the credit is taken are a
proper increase to the basis.

What to do with an energy credit when
it’s more than your tax.—If your credit
for this year is more than your tax minus.
certain other credits, you can carry over
the excess energy credit to the following
tax year.

Carryover for tax year in which the
alternative minimum tax applies.—If the
alternative minimum tax applies, you may
not receive the full tax benefit for the
energy credit claimed during the tax year.
If so, the amount of the energy credit
benefit you lose is eligible for carryover.
See Publication 525, Taxable and Nontax-
able Income, for more details.

Specific Instructions

Part I, lines 1a through 1h (insulation,
storm (or thermal) windows or doors,
caulking or weatherstri ig, etc.).

Enter your energy conservation costs only
for this tax year. Count the cost of the
item and its installation in or on your
principal residence. Do not include the
cost of repairs or maintenance for energy
conservation items.

Part I, line 4.—Enter your total energy
conservation costs from 1978 and 1979 for
this principal residence. If you had energy
conservation costs in the previous tax year
but could not take a credit because it was
less than $10, enter zero.

Part Il, lines 8a through 8c (solar,
geothermal, and wind).—Enter your renew-
able energy source costs only for this tax
year. Count the cost of the item and the
cost of labor for its assembly, preparation,
and installation in connection with your
principal residence. Do not include the
cost of repairs or maintenance for renew-
able energy source items.

Part II, line 11.—Enter your total renew-
able energy source costs from 1978 and
1979 for this principal residence. If you
had renewable energy source costs in the
previous tax year but could not take a
credit because it was less than $10,
enter zero.

Part III,—The amount of your energy
credit is limited to your tax less other
credits. If you have an amount on line 17
which is more than line 20, you can carry
over the excess energy credit to the next
tax year.

Part 111, line 16.—If your tax for the
previous tax year was less than the amount
of energy credit, you have a credit carry-
over to this tax year. Enter the carryover
amount on this line.

313-217-1