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

2013

Attachment 

Sequence No. 158

Name(s) shown on return Your social security number

Part I Residential Energy Efficient Property Credit (See instructions before completing this part.)

Note. Skip lines 1 through 11 if you only have a credit carryforward from 2012.

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 2012. Enter the amount, if any, from your 2012 Form 5695, line 18 . . 12

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

14 Limitation based on tax liability. Enter the amount from the Residential Energy Efficient Property 

Credit Limit Worksheet (see instructions) . . . . . . . . . . . . . . . . . . . 14

15 Residential energy efficient property credit. Enter the smaller of line 13 or line 14. Also include

this amount on Form 1040, line 52, or Form 1040NR, line 49 . . . . . . . . . . . . . 15

16 Credit carryforward to 2014. If line 15 is less than line 13, subtract 

line 15 from line 13 . . . . . . . . . . . . . . . . . 16

For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13540P Form 5695 (2013)
Form 5695 (2013) Page 2 

Part II Nonbusiness Energy Property Credit

17a Were the qualified energy efficiency improvements or residential energy property costs for your 

main home located in the United States? (see instructions) . . . . . . . . . . . . ▶ 17a 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? . . . . . ▶ 17c 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.

18 Lifetime limitation. Enter the amount from the Lifetime Limitation Worksheet (see instructions) . . 18

19 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 . . . . . . . . 19a

b Exterior doors that meet or exceed the Energy Star program requirements . . . . . . . . 19b

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 . . . . . . . . . . . . . . . . . . . . 19c

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

program requirements . . . . . . . . . . . . . . . . . 19d

e Maximum amount of cost on which the credit can be figured . . . . 19e

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

2009, 2010, 2011, or 2012, enter the amount from the Window Expense 

Worksheet (see instructions); otherwise enter -0- . . . . . . . . 19f

g Subtract line 19f from line 19e. If zero or less, enter -0- . . . . . . 19g

h Enter the smaller of line 19d or line 19g . . . . . . . . . . . . . . . . . . . . 19h

20 Add lines 19a, 19b, 19c, and 19h . . . . . . . . . . . . . . . . . . . . . . 20

21 Multiply line 20 by 10% (.10) . . . . . . . . . . . . . . . . . . . . . . . 21

22 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 . . . . . . . . . . . . 22a

b Qualified natural gas, propane, or oil furnace or hot water boiler. Do not enter more than $150 . . 22b

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

than $50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22c

23 Add lines 22a through 22c . . . . . . . . . . . . . . . . . . . . . . . . 23

24 Add lines 21 and 23 . . . . . . . . . . . . . . . . . . . . . . . . . . 24

25 Maximum credit amount. (If you jointly occupied the home, see instructions) . . . . . . . . 25

26 Enter the amount, if any, from line 18 . . . . . . . . . . . . . . . . . . . . . 26

27 Subtract line 26 from line 25. If zero or less, stop; you cannot take the nonbusiness energy 

property credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

28 Enter the smaller of line 24 or line 27 . . . . . . . . . . . . . . . . . . . . . 28

29 Limitation based on tax liability. Enter the amount from the Nonbusiness Energy Property Credit 

Limit Worksheet (see instructions) . . . . . . . . . . . . . . . . . . . . . . 29

30 Nonbusiness energy property credit. Enter the smaller of line 28 or line 29. Also include this

amount on Form 1040, line 52, or Form 1040NR, line 49 . . . . . . . . . . . . . . 30

Form 5695 (2013)
Form 5695 (2013) Page 3 

General Instructions

Section references are to the Internal Revenue Code.

Future Developments

For 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. 

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 2012 or to carry the unused portion of the 

credit to 2014.

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 2013.

Home. A home is where you lived in 2013 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 2013, 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:

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 2013, 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 2013, and

2. Any residential energy property costs paid or incurred in 2013.
Form 5695 (2013) Page 4 

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 2013 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 2013.

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 2013 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 19a Through 19h, 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 2013 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 

22a Through 22c, 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 17a through 17c and 19 through 24 of a separate 

Form 5695 for each main home.

2. Figure the amount to be entered on line 24 of both forms (but not 

more than $500 for each form) and enter the combined amount on line 

24 of one of the forms.

3. On line 25 of the form with the combined amount on line 24, cross 

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

4. On the dotted line to the left of line 25, enter “More than one main 

home.” Then, complete the rest of this form, including line 18. The 

amount on line 18 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.

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 2013 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.
Form 5695 (2013) Page 5 

Line 8

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

fuel cell property costs, earlier.

Line 14

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

14. If you are claiming the child tax credit for 2013, enter on line 4 of the 

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

972.

TIP

If you are not claiming the child tax credit for 2013, you do 

not need Pub. 972.

Residential Energy Efficient Property Credit Limit 

Worksheet—Line 14

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. Enter the amount, if any, from Form 5695, line 30 3.

4. Enter the amount, if any, from line 12 of the Line 

11 Worksheet in Pub. 972 if you are claiming the 

child tax credit . . . . . . . . . . 4.

5. Enter the amount, if any, from Form 8396, line 9 5.

6. Enter the amount, if any, from Form 8839, line 16 6.

7. Enter the amount, if any, from Form 8859, line 3 7.

8. Enter the amount, if any, from Form 8910, line 15 8.

9. Enter the amount, if any, from Form 8936, line 23 9.

10. Add lines 2 through 9 . . . . . . . . 10.

11. Subtract line 10 from line 1. Also enter this 

amount on Form 5695, line 14. If zero or less, 

enter -0- on Form 5695, lines 14 and 15 . . 11.

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 16

If you cannot use all of the credit because of the tax liability limit (line 14 

is less than line 13), you can carry the unused portion of the credit to 

2014.

File this form even if you cannot use any of your credit in 2013.

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 17a Through 17c

Line 17a. 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 17b. Enter the full address of your main home during 2013.

Line 17c. 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.

Line 18

If you took a nonbusiness energy property credit in 2006, 2007, 2009, 

2010, 2011, or 2012, complete the following worksheet to figure the 

amount to enter on line 18. If the total of the credits on line 7 of the 

worksheet is $500 or more, you generally cannot take this credit in 2013.

Lifetime Limitation Worksheet—Line 18

1. Enter the amount, if any, from your 2006 Form 

5695, line 12 . . . . . . . . . . 1.

2. Enter the amount, if any, from your 2007 Form 

5695, line 15 . . . . . . . . . . 2.

3. Enter the amount, if any, from your 2009 Form 

5695, line 11 . . . . . . . . . . 3.

4. Enter the amount, if any, from your 2010 Form 

5695, line 11 . . . . . . . . . . 4.

5. Enter the amount, if any, from your 2011 Form 

5695, line 14 . . . . . . . . . . 5.

6. Enter the amount, if any, from your 2012 Form 

5695, line 32 . . . . . . . . . . 6.

7. Add lines 1 through 6. Also enter this amount on 

Form 5695, line 18. If $500 or more, stop; you 

cannot take the nonbusiness energy property 

credit . . . . . . . . . . . . 7.

Lines 19a Through 19h

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 19a through 19d any amounts paid 

for the onsite preparation, assembly, or original installation of 

the components.

Line 19a. 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 19b. Enter the amounts you paid for exterior doors that meet or 

exceed the Energy Star program requirements.

Line 19c. 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. The roof must meet or exceed the Energy 

Star program requirements in effect at the time of purchase or

installation.

Line 19d. 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, 

2011, or 2012, you may not be able to include window 

expenses this year.

Line 19f. 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; 2011 Form 5695, line 3d; or 2012 Form 5695, line 21d, then use the 

worksheet next to figure the amount to enter on line 19f.
Form 5695 (2013) Page 6 

Window Expense Worksheet—Line 19f

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. Enter the amount from your 2012 Form 5695, 

line 21d . . . . . . . . . . . . 8.

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

amount on Form 5695, line 19f . . . . . 9.

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 22a Through 22c

TIP

Also include on lines 22a through 22c any labor costs 

properly allocable to the onsite preparation, assembly, or 

original installation of the property.

Line 22a. 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 22a. 

Line 22b. 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 22b. 

Line 22c. 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 22c. 

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 25

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

preprinted $500 on line 25 and enter on line 25 the smaller of:

1. The amount on line 24, or

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

24. The denominator is the total amount from line 24 for all owners.

For more details, see Joint occupancy, earlier.

Line 29

Complete the worksheet below to figure the amount to enter on line 29.

Nonbusiness Energy Property Credit Limit 

Worksheet—Line 29

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 29. If zero or less, 

stop; you cannot take the nonbusiness energy 

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