Form 5695

Department of the Treasury 

Internal Revenue Service 

Residential Energy Credits

▶ Information about Form 5695 and its instructions is at www.irs.gov/form5695.

▶ Attach to Form 1040 or Form 1040NR.

OMB No. 1545-0074

2012

Attachment 

Sequence No. 158

Name(s) shown on return Your social security number

For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13540P Form 5695 (2012)

Note. Skip lines 1 through 11 if you only have a credit carryforward from 2011.

1 Qualified solar electric property costs . . . . . . . . . . . . . . . . . . . . 1

2 Qualified solar water heating property costs . . . . . . . . . . . . . . . . . . 2

3 Qualified small wind energy property costs . . . . . . . . . . . . . . . . . . . 3

4 Qualified geothermal heat pump property costs . . . . . . . . . . . . . . . . . 4

5 Add lines 1 through 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 5

6 Multiply line 5 by 30% (.30) . . . . . . . . . . . . . . . . . . . . . . . . 6

7 a Qualified fuel cell property. Was qualified fuel cell property installed on or in connection with your 

main home located in the United States? (See instructions) . . . . . . . . . . . . ▶ 7a Yes No

Caution: If you checked the “No” box, you cannot take a credit for qualified fuel cell property. Skip 

lines 7b through 11.

b Print the complete address of the main home where you installed the fuel cell property.

Number and street Unit No.

City, State, and ZIP code

8 Qualified fuel cell property costs . . . . . . . . . . . . . 8

9 Multiply line 8 by 30% (.30) . . . . . . . . . . . . . . . 9

10 Kilowatt capacity of property on line 8 above ▶ . x $1,000 10

11 Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . 11

12 Credit carryforward from 2011. Enter the amount, if any, from your 2011 Form 5695, line 32 . . 12

13 Add lines 6, 11, and 12 . . . . . . . . . . . . . . . . . . . . . . . . . 13

14 Enter the amount from Form 1040, line 46, or Form 1040NR, line 44 . 14 

15 1040 filers: Enter the total, if any, of your credits from Form 1040, 

lines 47 through 50; line 32 of this form; line 12 of the Line 11 

Worksheet in Pub. 972 (see instructions); Form 8396, line 9; 

Form 8839, line 12; Form 8859, line 9; Form 8834, line 23; 

Form 8910, line 22; Form 8936, line 23; and Schedule R, line 22.

1040NR filers: Enter the amount, if any, from Form 1040NR,

lines 45 through 47; line 32 of this form; line 12 of the Line 11

Worksheet in Pub. 972 (see instructions); Form 8396, line 9; 

Form 8839, line 12; Form 8859, line 9; Form 8834, line 23; 

Form 8910, line 22; and Form 8936, line 23.

} 15

16 Subtract line 15 from line 14. If zero or less, enter -0- here and on line 17 . . . . . . . . . 16

17 Residential energy efficient property credit. Enter the smaller of line 13 or line 16. Also include

this amount on Form 1040, line 52, or Form 1040NR, line 49 . . . . . . . . . . . . . 17

18 Credit carryforward to 2013. If line 17 is less than line 13, subtract 

line 17 from line 13 . . . . . . . . . . . . . . . . . 18

Part I Residential Energy Efficient Property Credit (See instructions before completing this part.)
Form 5695 (2012) Page 2 

Part II Nonbusiness Energy Property Credit

19a Were the qualified energy efficiency improvements or residential energy property costs for your 

main home located in the United States? (see instructions) . . . . . . . . . . . . ▶ 19a Yes No

Caution: If you checked the “No” box, you cannot claim the nonbusiness energy property credit. Do not complete Part II.

b Print the complete address of the main home where you made the qualifying improvements.

Caution: You can only have one main home at a time.

Number and street Unit No.

City, State, and ZIP code

c Were any of these improvements related to the construction of this main home? . . . . . ▶ 19c Yes No

Caution: If you checked the “Yes” box, you can only claim the nonbusiness energy property credit for qualifying 

improvements that were not related to the construction of the home. Do not include expenses related to the 

construction of your main home, even if the improvements were made after you moved into the home.

20 Lifetime limitation. Amounts claimed in 2006, 2007, 2009, 2010, and 

2011. 

a Amount, if any, from line 12 of your 2006 Form 5695 . . . . . . . 20a

b Amount, if any, from line 15 of your 2007 Form 5695 . . . . . . . 20b

c Amount, if any, from line 11 of your 2009 Form 5695 . . . . . . . 20c

d Amount, if any, from line 11 of your 2010 Form 5695 . . . . . . . 20d

e Amount, if any, from line 14 of your 2011 Form 5695 . . . . . . . 20e

f Add lines 20a through 20e. If $500 or more, stop; you cannot take the nonbusiness energy property credit 20f 

21 Qualified energy efficiency improvements (original use must begin with you and the component must 

reasonably be expected to last for at least 5 years; do not include labor costs) (see instructions).

a Insulation material or system specifically and primarily designed to reduce heat loss or gain of 

your home that meets the prescriptive criteria established by the 2009 IECC . . . . . . . . 21a

b Exterior doors that meet or exceed the Energy Star program requirements . . . . . . . . 21b

c Metal or asphalt roof that meets or exceeds the Energy Star program requirements and has

appropriate pigmented coatings or cooling granules which are specifically and primarily designed 

to reduce the heat gain of your home . . . . . . . . . . . . . . . . . . . . 21c

d Exterior windows and skylights that meet or exceed the Energy Star 

program requirements . . . . . . . . . . . . . . . . . 21d

e Maximum amount of cost on which the credit can be figured . . . . . 21e

f If you claimed window expenses on your Form 5695 for 2006, 2007, 2009, 

2010, or 2011, enter the amount from the Window Expense Worksheet (see 

instructions); otherwise enter -0- . . . . . . . . . . . . . . 21f

g Subtract line 21f from line 21e. If zero or less, enter -0- . . . . . . . 21g

h Enter the smaller of line 21d or line 21g . . . . . . . . . . . . . . . . . . . . . 21h

22 Add lines 21a, 21b, 21c, and 21h . . . . . . . . . . . . . . . . . . . . . . 22

23 Multiply line 22 by 10% (.10) . . . . . . . . . . . . . . . . . . . . . . . 23

24 Residential energy property costs (must be placed in service by you; include labor costs for onsite 

preparation, assembly, and original installation) (see instructions).

a Energy-efficient building property. Do not enter more than $300 . . . . . . . . . . . . 24a

b Qualified natural gas, propane, or oil furnace or hot water boiler. Do not enter more than $150 . . 24b

c Advanced main air circulating fan used in a natural gas, propane, or oil furnace. Do not enter more than $50 . 24c

25 Add lines 24a through 24c . . . . . . . . . . . . . . . . . . . . . . . . 25

26 Add lines 23 and 25 . . . . . . . . . . . . . . . . . . . . . . . . . . 26

27 Maximum credit amount. (If you jointly occupied the home, see instructions) . . . . . . . . 27

28 Enter the amount, if any, from line 20f . . . . . . . . . . . . . . . . . . . . 28

29 Subtract line 28 from line 27. If zero or less, stop; you cannot take the nonbusiness energy property credit . 29

30 Enter the smaller of line 26 or line 29 . . . . . . . . . . . . . . . . . . . . . 30

31 Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet (see instructions) . 31

32 Nonbusiness energy property credit. Enter the smaller of line 30 or line 31. Also include this

amount on Form 1040, line 52, or Form 1040NR, line 49 . . . . . . . . . . . . . . 32

Form 5695 (2012)
Form 5695 (2012) Page 3 

General Instructions

Section references are to the Internal Revenue Code.

Future Developments

For the the latest information about developments related to 

Form 5695 and its instructions, such as legislation enacted after 

they were published, go to www.irs.gov/form5695. 

What's New

The nonbusiness energy property credit has been extended through 

2013. You figure your nonbusiness energy property credit on Part II 

of this form.

Purpose of Form

Use Form 5695 to figure and take your residential energy credits. 

The residential energy credits are:

• The residential energy efficient property credit, and

• The nonbusiness energy property credit.

Also use Form 5695 to take any residential energy efficient 

property credit carryforward from 2011 or to carry the unused 

portion of the credit to 2013.

Who Can Take the Credits

You may be able to take the credits if you made energy saving 

improvements to your home located in the United States in 2012.

Home. A home is where you lived in 2012 and can include a house, 

houseboat, mobile home, cooperative apartment, condominium, 

and a manufactured home that conforms to Federal Manufactured 

Home Construction and Safety Standards.

You must reduce the basis of your home by the amount of any 

credit allowed.

Main home. Your main home is generally the home where you 

live most of the time. A temporary absence due to special 

circumstances, such as illness, education, business, military 

service, or vacation, will not change your main home.

Costs. For purposes of both credits, costs are treated as being paid 

when the original installation of the item is completed, or in the case 

of costs connected with the reconstruction of your home, when 

your original use of the reconstructed home begins. For purposes of 

the residential energy efficient property credit only, costs connected 

with the construction of a home are treated as being paid when 

your original use of the constructed home begins. If less than 80% 

of the use of an item is for nonbusiness purposes, only that portion 

of the costs that is allocable to the nonbusiness use can be used to 

determine either credit.

▲!

CAUTION

Only the residential energy efficient property credit (Part 

I) is available for both existing homes and homes being 

constructed. The nonbusiness energy property credit 

(Part II) is only available for existing homes.

Association or cooperative costs. If you are a member of a 

condominium management association for a condominium you own 

or a tenant-stockholder in a cooperative housing corporation, you 

are treated as having paid your proportionate share of any costs of 

such association or corporation.

▲!

CAUTION

If you received a subsidy from a public utility for the 

purchase or installation of an energy conservation 

product and that subsidy was not included in your gross 

income, you must reduce your cost for the 

product by the amount of that subsidy before you compute your 

credit. This rule also applies if a third party (such as a contractor) 

receives the subsidy on your behalf.

Residential Energy Efficient Property Credit 

(Part I) 

If you made energy saving improvements to more than one home 

that you used as a residence during 2012, enter the total of those 

costs on the applicable line(s) of one Form 5695. For qualified fuel 

cell property, see Lines 7a and 7b, later.

You may be able to take a credit of 30% of your costs of qualified 

solar electric property, solar water heating property, small wind 

energy property, geothermal heat pump property, and fuel cell 

property. Include any labor costs properly allocable to the onsite 

preparation, assembly, or original installation of the residential 

energy efficient property and for piping or wiring to interconnect 

such property to the home. The credit amount for costs paid for 

qualified fuel cell property is limited to $500 for each one-half 

kilowatt of capacity of the property.

Qualified solar electric property costs. Qualified solar electric 

property costs are costs for property that uses solar energy to 

generate electricity for use in your home located in the United 

States. No costs relating to a solar panel or other property installed 

as a roof (or portion thereof) will fail to qualify solely because the 

property constitutes a structural component of the structure on 

which it is installed. The home does not have to be your main home.

Qualified solar water heating property costs. Qualified solar 

water heating property costs are costs for property to heat water for 

use in your home located in the United States if at least half of the 

energy used by the solar water heating property for such purpose is 

derived from the sun. No costs relating to a solar panel or other 

property installed as a roof (or portion thereof) will fail to qualify 

solely because the property constitutes a structural component of 

the structure on which it is installed. To qualify for the credit, the 

property must be certified for performance by the nonprofit Solar 

Rating Certification Corporation or a comparable entity endorsed by 

the government of the state in which the property is installed. The 

home does not have to be your main home.

Qualified small wind energy property costs. Qualified small wind 

energy property costs are costs for property that uses a wind 

turbine to generate electricity for use in connection with your home 

located in the United States. The home does not have to be your 

main home.

Qualified geothermal heat pump property costs. Qualified

geothermal heat pump property costs are costs for qualified

geothermal heat pump property installed on or in connection with 

your home located in the United States. Qualified geothermal heat 

pump property is any equipment that uses the ground or ground 

water as a thermal energy source to heat your home or as a thermal 

energy sink to cool your home. To qualify for the credit, the 

geothermal heat pump property must meet the requirements of the 

Energy Star program that are in effect at the time of purchase. The 

home does not have to be your main home.

Qualified fuel cell property costs. Qualified fuel cell property costs 

are costs for qualified fuel cell property installed on or in connection 

with your main home located in the United States. Qualified fuel cell 

property is an integrated system comprised of a fuel cell stack 

assembly and associated balance of plant components that 

converts a fuel into electricity using electrochemical means. To 

qualify for the credit, the fuel cell property must have a nameplate

capacity of at least one-half kilowatt of electricity using an

electrochemical process and an electricity-only generation

efficiency greater than 30%.

▲!

CAUTION

Costs allocable to a swimming pool, hot tub, or any 

other energy storage medium which has a function 

other than the function of such storage do not qualify 

for the residential energy efficiency credit.

Joint occupancy. If you occupied your home jointly with someone 

other than your spouse, each occupant must complete his or her 

own Form 5695. To figure the credit, the maximum qualifying costs 

that can be taken into account by all occupants for qualified fuel cell 

property costs is $1,667 for each one-half kilowatt of capacity of the

property. The amount allocable to you for qualified fuel cell property 

costs is the lesser of:
Form 5695 (2012) Page 4 

1. The amount you paid, or

2. The maximum qualifying cost of the property multiplied by a 

fraction. The numerator is the amount you paid and the 

denominator is the total amount paid by you and all other 

occupants.

These rules do not apply to married individuals filing a joint return.

Example. Taxpayer A owns a house with Taxpayer B where they 

both reside. In 2012, they installed qualified fuel cell property at a 

cost of $20,000 with a kilowatt capacity of 5. Taxpayer A paid 

$12,000 towards the cost of the property and Taxpayer B paid the 

remaining $8,000. The amount to be allocated is $16,670 ($1,667 x 

10 (kilowatt capacity x 2)). The amount of cost allocable to Taxpayer 

A is $10,002 ($16,670 x $12,000/$20,000). The amount of cost 

allocable to Taxpayer B is $6,668 ($16,670 x $8,000/$20,000).

Nonbusiness Energy Property Credit (Part II)

You may be able to take a credit equal to the sum of:

1. 10% of the amount paid or incurred for qualified energy 

efficiency improvements installed during 2012, and

2. Any residential energy property costs paid or incurred in 2012.

However, this credit is limited as follows.

• A total combined credit limit of $500 for all tax years after 2005.

• A combined credit limit of $200 for windows for all tax years after 

2005.

• A credit limit for residential energy property costs for 2012 of $50 

for any advanced main air circulating fan; $150 for any qualified 

natural gas, propane, or oil furnace or hot water boiler; and $300 for 

any item of energy efficient building property.

▲!

CAUTION

If the total of any nonbusiness energy property credits 

you have taken in previous years (after 2005) is more 

than $500, you generally cannot take the credit in 2012.

Subsidized energy financing. Any amounts provided for by 

subsidized energy financing cannot be used to figure the 

nonbusiness energy property credit. This is financing provided 

under a federal, state, or local program, the principal purpose of 

which is to provide subsidized financing for projects designed to 

conserve or produce energy.

Qualified energy efficiency improvements. Qualified energy

efficiency improvements are the following building envelope

components installed on or in your main home that you owned 

during 2012 located in the United States if the original use of the

component begins with you, the component can be expected to 

remain in use at least 5 years, and the component meets certain 

energy standards.

• Any insulation material or system that is specifically and primarily 

designed to reduce heat loss or gain of a home when installed in or 

on such a home.

• Exterior windows and skylights.

• Exterior doors.

• Any metal roof with appropriate pigmented coatings or asphalt 

roof with appropriate cooling granules that are specifically and 

primarily designed to reduce the heat gain of your home.

For purposes of figuring the credit, do not include amounts paid 

for the onsite preparation, assembly, or original installation of the 

building envelope component.

▲!

CAUTION

To qualify for the credit, qualified energy efficiency 

improvements must meet certain energy efficiency 

requirements. See Lines 21a Through 21h, later, for 

details.

Residential energy property costs. Residential energy property 

costs are costs of new qualified energy property that is installed on 

or in connection with your main home that you owned during 2012 

located in the United States. Include any labor costs properly 

allocable to the onsite preparation, assembly, or original installation 

of the energy property. Qualified residential energy property is any 

of the following.

• Certain electric heat pump water heaters; electric heat pumps; 

central air conditioners; natural gas, propane, or oil water heaters; 

and stoves that use biomass fuel.

• Qualified natural gas, propane, or oil furnaces and qualified natural 

gas, propane, or oil hot water boilers.

• Certain advanced main air circulating fans used in natural gas, 

propane, or oil furnaces.

▲!

CAUTION

To qualify for the credit, qualified residential energy 

property must meet certain energy efficiency 

requirements. See Lines 24a Through 24c, later, for 

details.

Joint ownership of qualified property. If you and a neighbor 

shared the cost of qualifying property to benefit each of your main 

homes, both of you can take the nonbusiness energy property 

credit. You figure your credit on the part of the cost you paid. The 

limit on the amount of the credit applies to each of you separately.

Married taxpayers with more than one home. If both you and 

your spouse owned and lived apart in separate main homes, the 

limit on the amount of the credit applies to each of you separately. If 

you are filing separate returns, both of you would complete a 

separate Form 5695. If you are filing a joint return, figure your 

nonbusiness energy property credit as follows.

1. Complete lines 19a through 19c and 21 through 26 of a 

separate Form 5695 for each main home.

2. Figure the amount to be entered on line 26 of both forms (but 

not more than $500 for each form) and enter the combined amount 

on line 26 of one of the forms.

3. On line 27 of the form with the combined amount on line 26, 

cross out the preprinted $500 and enter $1,000.

4. On the dotted line to the left of line 27, enter “More than one 

main home.” Then, complete the rest of this form, including lines 

20a through 20f. The amount on line 20f can exceed $500.

5. Attach both forms to your return.

Joint occupancy. If you owned your home jointly with someone 

other than your spouse, each owner must complete his or her own 

Form 5695. To figure the credit, there are no maximum qualifying 

costs for insulation, exterior doors, and a metal or asphalt roof. 

Enter the amounts you paid for these items on the appropriate lines 

of Form 5695, Part II. For windows and residential energy property 

costs, the amount allocable to you is the smaller of:

1. The amount you paid, or

2. The maximum qualifying cost* of the property multiplied by a 

fraction. The numerator is the amount you paid and the 

denominator is the total amount paid by you and all other owners.

*$2,000 for windows; $300 for energy-efficient building property; 

$150 for qualified natural gas, propane, or oil furnace or hot water 

boiler; or $50 for an advanced main air circulating fan.

Specific Instructions

Part I

Residential Energy Efficient Property Credit

Before you begin Part I:

Figure the amount of any of the following credits you are claiming.

• Credit for the elderly or the disabled.

• Nonbusiness energy property credit (Part II of this form).

• Adoption credit.

• Mortgage interest credit.

• District of Columbia first-time homebuyer credit.

• Alternative motor vehicle credit.

• Qualified plug-in electric vehicle credit.

• Qualified plug-in electric drive motor vehicle credit.
Form 5695 (2012) Page 5 

TIP Also include on lines 1 through 4, and 8, any labor costs 

properly allocable to the onsite preparation, assembly, or 

original installation of the property and for piping or 

wiring to interconnect such property to the home.

Line 1

Enter the amounts you paid for qualified solar electric property. See 

Qualified solar electric property costs, earlier.

Line 2

Enter the amounts you paid for qualified solar water heating 

property. See Qualified solar water heating property costs, earlier.

Line 3

Enter the amounts you paid for qualified small wind energy 

property. See Qualified small wind energy property costs, earlier.

Line 4

Enter the amounts you paid for qualified geothermal heat pump 

property. See Qualified geothermal heat pump property costs, 

earlier.

Lines 7a and 7b

Any qualified fuel cell property costs must have been for your main 

home located in the United States. See Main home, earlier. If you 

check the “No” box, you cannot include any fuel property costs on 

line 8.

If you check the “Yes” box, enter the full address of your main 

home during 2012 on line 7b.

If you and your spouse are filing jointly and you each have 

different main homes with qualified fuel cell property costs, provide 

on line 7b the address of your main home. Add a sheet providing 

the address of your spouse's main home. You and your spouse 

should add your qualified fuel cell property costs together on line 8 

of one Form 5695.

Line 8

Enter the amounts you paid for qualified fuel cell property. See 

Qualified fuel cell property costs, earlier.

Line 15

If you are claiming the child tax credit for 2012, include on this line 

the amount from line 12 of the Line 11 Worksheet in Pub. 972.

TIP

If you are not claiming the child tax credit for 2012, you 

do not need Pub. 972.

Manufacturer’s certification. For purposes of taking the credit, 

you can rely on the manufacturer’s certification in writing that a 

product is qualifying property for the credit. Do not attach the 

certification to your return. Keep it for your records.

Line 18

If you cannot use all of the credit because of the tax liability limit 

(line 16 is less than line 13), you can carry the unused portion of the 

credit to 2013.

File this form even if you cannot use any of your credit in 2012.

Part II

Nonbusiness Energy Property Credit

Before you begin Part II:

Figure the amount of any credit for the elderly or the disabled you 

are claiming.

Lines 19a Through 19c

Line 19a. To qualify for the credit, any qualified energy efficiency 

improvements or residential energy property costs must have been 

for your main home located in the United States. See Main home, 

earlier. If you check the “No” box, you cannot take the nonbusiness 

energy property credit.

Line 19b. Enter the full address of your main home during 2012.

Line 19c. You may only include expenses for qualified 

improvements for an existing home or for an addition or renovation 

to an existing home, and not for a newly constructed home. If you 

check the “Yes” box, you cannot claim any expenses for qualified 

improvements that are related to the construction of your home, 

even if the improvement is installed after you have moved into the 

home.

Lines 20a Through 20f

Enter the nonbusiness energy property credits that you took in 

2006, 2007, 2009, 2010, and 2011 on the appropriate lines. If the 

total of the credits already taken is $500 or more, you generally 

cannot take this credit in 2012.

Lines 21a Through 21h

Note. A reference to the IECC is a reference to the 2009 

International Energy Conservation Code as in effect (with 

supplements) on February 17, 2009.

▲!

CAUTION

Do not include on lines 21a through 21d any amounts 

paid for the onsite preparation, assembly, or original 

installation of the components.

Line 21a. Enter the amounts you paid for any insulation material or 

system (including any vapor retarder or seal to limit infiltration) that 

is specifically and primarily designed to reduce the heat loss or gain 

of your home when installed in or on such home and meets the 

prescriptive criteria established by the IECC. 

▲!

CAUTION

A component is not specifically and primarily designed 

to reduce the heat loss or gain of your home if it 

provides structural support or a finished surface (such 

as drywall or siding) or its principal purpose is to serve 

any function unrelated to the reduction of heat loss or gain.

Line 21b. Enter the amounts you paid for exterior doors that meet or 

exceed the Energy Star program requirements.

Line 21c. Enter the amounts you paid for a metal roof with the 

appropriate pigmented coatings or an asphalt roof with the 

appropriate cooling granules that are specifically and primarily 

designed to reduce the heat gain of your home, and the roof meets 

or exceeds the Energy Star program requirements in effect at the 

time of purchase or installation.

Line 21d. Enter the amounts you paid for exterior windows and 

skylights that meet or exceed the Energy Star program 

requirements.

▲!

CAUTION

If you took the credit for windows in 2006, 2007, 2009, 

2010, or 2011, you may not be able to include window 

expenses this year.

Line 21f. If you reported expenses on your 2006 Form 5695, line 2b; 

2007 Form 5695, line 2d; 2009 Form 5695, line 2b; 2010 Form 5695, 

line 2b; or 2011 Form 5695, line 3d; then use the worksheet next to 

figure the amount to enter on line 21f.
Form 5695 (2012) Page 6 

Window Expense Worksheet—Line 21f

1. Enter the amount from your 2006 Form 5695, 

line 2b . . . . . . . . . . . . 1.

2. Enter the amount from your 2007 Form 5695, 

line 2d . . . . . . . . . . . . 2.

3. Enter the amount from your 2009 Form 5695, 

line 2b . . . . . . . . . . . . 3.

4. Enter the amount from your 2010 Form 5695, 

line 2b . . . . . . . . . . . . 4.

5. Add lines 3 and 4 . . . . . . . . . 5.

6. Multiply line 5 by 3.0 . . . . . . . . 6.

7. Enter the amount from your 2011 Form 5695, 

line 3d . . . . . . . . . . . . 7.

8. Add lines 1, 2, 6, and 7. Also enter this 

amount on Form 5695, line 21f. . . . . 8.

Manufacturer’s certification. For purposes of taking the credit, 

you can rely on a manufacturer’s certification in writing that a 

building envelope component is an eligible building envelope 

component. Do not attach the certification to your return. Keep it for 

your records.

Lines 24a Through 24c

TIP

Also include on lines 24a through 24c any labor costs 

properly allocable to the onsite preparation, assembly, 

or original installation of the property.

Line 24a. Enter the amounts you paid for energy-efficient building 

property. Energy-efficient building property is any of the following.

• An electric heat pump water heater that yields an energy factor of 

at least 2.0 in the standard Department of Energy test procedure.

• An electric heat pump that achieves the highest efficiency tier 

established by the Consortium for Energy Efficiency (CEE) as in 

effect on January 1, 2009.

• A central air conditioner that achieves the highest efficiency tier 

that has been established by the CEE as in effect on January 1, 

2009.

• A natural gas, propane, or oil water heater that has an energy 

factor of at least 0.82 or a thermal efficiency of at least 90%.

• A stove that uses the burning of biomass fuel to heat your home 

or heat water for your home that has a thermal efficiency rating of at 

least 75%. Biomass fuel is any plant-derived fuel available on a 

renewable or recurring basis, including agricultural crops and trees, 

wood and wood waste and residues (including wood pellets), plants 

(including aquatic plants), grasses, residues, and fibers.

Do not enter more than $300 on line 24a. 

Line 24b. Enter the amounts you paid for a natural gas, propane, or 

oil furnace or hot water boiler that achieves an annual fuel utilization 

rate of at least 95.

Do not enter more than $150 on line 24b. 

Line 24c. Enter the amounts you paid for an advanced main air 

circulating fan used in a natural gas, propane, or oil furnace that has 

an annual electricity use of no more than 2% of the total annual 

energy use of the furnace (as determined in the standard 

Department of Energy test procedures).

Do not enter more than $50 on line 24c. 

Manufacturer’s certification. For purposes of taking the credit, 

you can rely on a manufacturer’s certification in writing that a 

product is qualified residential energy property. Do not attach the 

certification to your return. Keep it for your records.

Line 27

If the rules discussed earlier for joint occupancy apply, cross out the 

preprinted $500 on line 27 and enter on line 27 the smaller of:

1. The amount on line 26, or

2. $500 multiplied by a fraction. The numerator is the amount on 

line 26. The denominator is the total amount from line 26 for all 

owners.

For more details, see Joint occupancy, earlier.

Line 31

Complete the worksheet below to figure the amount to enter on line 

31.

Credit Limit Worksheet—Line 31

1. Enter the amount from Form 1040, line 46, or 

Form 1040NR, line 44 . . . . . . . 1.

2. 

 

Enter the total, if any, of your credits from 

Form 1040, lines 47 through 50, and 

Schedule R, line 22; or Form 1040NR, lines 

45 through 47 . . . . . . . . . 2.

3. Subtract line 2 from line 1. Also enter this 

amount on Form 5695, line 31. If zero or less, 

stop; you cannot take the nonbusiness 

energy property credit . . . . . . . 3.