Form 5695 

Department of the Treasury 

Internal Revenue Service 

Residential Energy Credits

© See instructions.

© Attach to Form 1040 or Form 1040NR.

OMB No. 1545-0074

2009

Attachment 

Sequence No. 158

Name(s) shown on return Your social security number

Before You Begin Part I: Figure the amount of any credit for the elderly or the disabled you are claiming.

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

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

main home located in the United States? (see instructions) . . . . . . . . . . . . © 1 Yes No

Caution: If you checked the “No” box, you cannot claim the nonbusiness energy property credit. 

Do not complete Part I.

2 Qualified energy efficiency improvements (see instructions).

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

your home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a 

b Exterior windows (including certain storm windows) and skylights . . . . . . . . . . . 2b

c Exterior doors (including certain storm doors) . . . . . . . . . . . . . . . . . . 2c 

d 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, and the roof 

meets or exceeds the Energy Star program requirements in effect at the time of purchase or 

installation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d

3 Residential energy property costs (see instructions).

a Energy-efficient building property . . . . . . . . . . . . . . . . . . . . . . 3a 

b Qualified natural gas, propane, or oil furnace or hot water boiler . . . . . . . . . . . . 3b

c Advanced main air circulating fan used in a natural gas, propane, or oil furnace . . . . . . . 3c 

4 Add lines 2a through 3c . . . . . . . . . . . . . . . . . . . . . . . . . 4 

5 Multiply line 4 by 30% (.30) . . . . . . . . . . . . . . . . . . . . . . . . 5 

6 Maximum credit amount. (If you jointly occupied the home, see instructions) . . . . . . . . 6 $1,500

7 Enter the smaller amount of line 5 or line 6 . . . . . . . . . . . . . . . . . . . 7 

8 Enter the amount from Form 1040, line 46, or Form 1040NR, line 43 . 8 

9 Enter the total, if any, of your credits from Form 1040, lines 47 through 

50, and Schedule R, line 24; or Form 1040NR, lines 44 through 46 . . 9 

10 Subtract line 9 from line 8. If zero or less, stop. You cannot take the nonbusiness energy property 

credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 

11 Nonbusiness energy property credit. Enter the smaller of line 7 or line 10 . . . . . . . . 11 

For Paperwork Reduction Act Notice, see instructions. Cat. No. 13540P Form 5695 (2009)
Form 5695 (2009) Page 2 

Before You Begin Part II:

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

● Credit for the elderly or the disabled.

● 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.

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

Note. Skip lines 12 through 21 if you only have a credit carryforward from 2008.

12 Qualified solar electric property costs . . . . . . . . . . . . . . . . . . . . 12 

13 Qualified solar water heating property costs . . . . . . . . . . . . . . . . . . 13 

14 Qualified small wind energy property costs . . . . . . . . . . . . . . . . . . . 14 

15 Qualified geothermal heat pump property costs . . . . . . . . . . . . . . . . . 15 

16 Add lines 12 through 15 . . . . . . . . . . . . . . . . . . . . . . . . . 16 

17 Multiply line 16 by 30% (.30) . . . . . . . . . . . . . . . . . . . . . . . 17 

18 Qualified fuel cell property costs . . . . . . . . . . . . . 18 

19 Multiply line 18 by 30% (.30) . . . . . . . . . . . . . . 19 

20 Kilowatt capacity of property on line 18 above © . x $1,000 20 

21 Enter the smaller of line 19 or line 20 . . . . . . . . . . . . . . . . . . . . . 21 

22 Credit carryforward from 2008. Enter the amount, if any, from your 2008 Form 5695, line 28 . . 22

23 Add lines 17, 21, and 22 . . . . . . . . . . . . . . . . . . . . . . . . . 23 

24 Enter the amount from Form 1040, line 46, or Form 1040NR, line 43 . 24 

25 1040 filers: Enter the total, if any, of your credits from Form 1040, 

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

worksheet in Pub. 972 (see instructions); Form 8396, line 11; Form 

8839, line 18; Form 8859, line 11; Form 8834, line 22; Form 8910, 

line 21; Form 8936, line 14; and Schedule R, line 24.

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

44 through 46; line 11 of this form; line 12 of the Line 11

worksheet in Pub. 972 (see instructions); Form 8396, line 11; Form

8839, line 18; Form 8859, line 11; Form 8834, line 22; Form 8910,

line 21; and Form 8936, line 14. % 25 

26 Subtract line 25 from line 24. If zero or less, enter -0- here and on line 27 . . . . . . . . . 26 

27 Residential energy efficient property credit. Enter the smaller of line 23 or line 26 . . . . . 27 

28 Credit carryforward to 2010. If line 27 is less than line 23, subtract line 

27 from line 23 . . . . . . . . . . . . . . . . . . . 28 

Part III Current Year Residential Energy Credits

29 Add lines 11 and 27. Enter the result here and on Form 1040, line 52, or Form 1040NR, line 48, 

and check box c on that line . . . . . . . . . . . . . . . . . . . . . . . 29 

Form 5695 (2009)
Form 5695 (2009) Page 3 

General Instructions

Section references are to the Internal Revenue Code.

What’s New

Nonbusiness energy property credit. The nonbusiness energy 

property credit has been reinstated for qualified property placed in 

service after 2008. The credit is limited to a total of $1,500 for tax years 

2009 and 2010. The credit has also been expanded to include certain 

biomass fuel stoves and asphalt roofs. For more details, see 

Nonbusiness Energy Property Credit below.

Residential energy efficient property credit. The annual maximum 

credit limits have been eliminated for qualified solar, small wind energy, 

and geothermal heat pump property costs. For more details, see

Residential Energy Efficient Property Credit on this page.

Purpose of Form

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

residential energy credits are:

● The nonbusiness energy property credit, and

● The residential energy efficient property credit.

Also use Form 5695 to take any residential energy efficient property 

credit carryforward from 2008.

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 2009. For 

credit purposes, costs are treated as being paid when the original 

installation of the item is completed, or in the case of costs connected 

with the construction or reconstruction of your home, when your original 

use of the constructed or reconstructed home begins. If less than 80% 

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

the costs that are allocable to the nonbusiness use can be used to 

determine the credits.

Home. A home is where you lived in 2009 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 credits 

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.

Special rules. 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.

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.

Nonbusiness Energy Property Credit

You may be able to take a credit of 30% of the costs paid or incurred in 

2009 for any qualified energy efficiency improvements and any

residential energy property. The credit is limited to a total of $1,500 for 

tax years 2009 and 2010.

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 2009 located in the 

United States if the original use of the component begins with you and 

the component can be expected to remain in use at least 5 years.

● 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 (including certain storm windows and skylights).

● Exterior doors (including certain storm 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, and the roof meets or 

exceeds the Energy Star program requirements in effect at the time of 

purchase or installation.

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

the onsite preparation, assembly, or original installation of the property.

To qualify for the credit, qualified energy efficiency 

improvements must meet certain energy efficiency 

requirements. See Lines 2a Through 2d on page 4 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 2009 located in 

the United States. This includes labor costs properly allocable to the 

onsite preparation, assembly, or original installation of the 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.

To qualify for the credit, qualified residential energy 

property must meet certain energy efficiency requirements. 

See Lines 3a Through 3c on page 5 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 Part I of a separate Form 5695 for each main home 

through line 5.

2. Figure the amount to be entered on line 5 of both forms (but not 

more than $1,500 for each form) and enter the combined amount on line 

5 of one of the forms.

3. On line 6 of the form with the combined amount on line 5, cross out 

the preprinted $1,500 and enter $3,000.

4. On the dotted line to the left of line 6, enter “More than one main 

home.” Then, complete the rest of this form.

5. Attach both forms to your return.

Joint occupancy. If you owned your home jointly, each owner must 

complete his or her own Form 5695. Your credit is limited to the smaller 

of:

1. The amount you paid, or

2. $1,500 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.

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

Residential Energy Efficient Property Credit

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. This 

includes 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. 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.
Form 5695 (2009) Page 4 

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. This 

includes costs relating to a solar panel or other property installed as a 

roof or a portion of a roof. 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. This includes costs relating to a solar panel or other property

installed as a roof or a portion of a roof. 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 qualifiy 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%.

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, 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 onehalf 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 2009, 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).

Specific Instructions

Part I

Nonbusiness Energy Property Credit

Line 1

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 on page 3. If you check the 

“No” box, you cannot take the nonbusiness energy property credit.

Lines 2a Through 2d

Note. Unless otherwise noted, any references to the International 

Energy Conservation Code (IECC) are treated as references to either the 

2001 Supplement of the 2000 IECC or the 2004 Supplement of the 2003 

IECC.

Do not include on lines 2a through 2d any amounts paid for 

the onsite preparation, assembly, or original installation of 

the components.

Line 2a. 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 may be taken into 

account in determining whether the building thermal envelope 

requirements established by the IECC are satisfied.

For property placed in service after February 17, 2009, the property 

must be specifically and primarily designed to reduce the heat loss or 

gain of your home when installed on or in such home and must also 

meet the prescriptive criteria established by the 2009 IECC as in effect 

(with supplements) on February 17, 2009. However, if you purchased 

property before June 1, 2009, you can still take the credit if you relied on 

the manufacturer's certification issued before February 18, 2009, that 

the property met the standards in effect before February 18, 2009. 

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 2b. Enter the amounts you paid for exterior windows (including any 

storm windows installed with such exterior windows) and skylights that 

meet or exceed the prescriptive criteria established by the IECC for the 

climate zone in which these components were installed. 

For property placed in service after February 17, 2009, in addition to 

meeting the prescriptive criteria for such component established by the 

IECC, the property must have a U-factor of 0.30 or less and a solar heat 

gain coefficient (SHGC) of 0.30 or less. However, if you purchased 

property before June 1, 2009, you can still take the credit if you relied on 

the manufacturer's certification issued before February 18, 2009, that 

the property met the standards in effect before February 18, 2009. In 

addition, for exterior windows and skylights purchased before June 1, 

2009, you can rely on the Energy Star label, rather than a manufacturer's 

certification if the property is installed in the region identified on the 

label. 

Line 2c. Enter the amounts you paid for exterior doors that meet or 

exceed the criteria established by the IECC for the climate zone in which 

such doors were installed. Also, enter the amounts you paid for any storm 

door that, in combination with a wood door assigned a default U- factor 

by the IECC, does not exceed the default U-factor requirement assigned 

to such combination by the IECC. 

For property placed in service after February 17, 2009, in addition to 

meeting the prescriptive criteria for such component established by the 

IECC, the property must have a U-factor of 0.30 or less and a SHGC of 

0.30 or less. However, if you purchased property before June 1, 2009, 

you can still take the credit if you relied on the manufacturer's 

certification issued before February 18, 2009, that the property met the 

standards in effect before February 18, 2009. 
Form 5695 (2009) Page 5 

Line 2d. 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.

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 3a Through 3c

Also include on lines 3a through 3c any labor costs 

properly allocable to the onsite preparation, assembly, or 

original installation of the property.

Line 3a. 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 has a heating seasonal performance factor 

(HSPF) of at least 9, a seasonal energy efficiency rating (SEER) of at 

least 15, and an energy efficiency rating (EER) of at least 13.

For property placed in service after February 17, 2009, the property 

must achieve the highest efficiency tier established by the Consortium 

for Energy Efficiency (CEE) as in effect on January 1, 2009. However, if 

you purchased property before June 1, 2009, you can still take the 

credit if you relied on the manufacturer's certification issued before 

February 18, 2009, that the property met the standards in effect before 

February 18, 2009. 

● A central air conditioner that achieves the highest efficiency tier that 

has been established by the CEE as in effect on January 1, 2006.

For property placed in service after February 17, 2009, the property 

must achieve the highest efficiency tier established by the CEE as in 

effect on January 1, 2009. However, if you purchased property before 

June 1, 2009, you can still take the credit if you relied on the 

manufacturer's certification issued before February 18, 2009, that the 

property met the standards in effect before February 18, 2009. 

● A natural gas, propane, or oil water heater that has an energy factor of 

at least 0.80 or a thermal efficiency of at least 90%.

For property placed in service after February 17, 2009, the property 

must have an energy factor of at least 0.82 or a thermal efficiency of at 

least 90%. However, if you purchased property before June 1, 2009, 

you can still take the credit if you relied on the manufacturer's 

certification issued before February 18, 2009, that the property met the 

standards in effect before February 18, 2009. 

● 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% as measured by using a lower heating value. 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.

Line 3b. Enter the amounts you paid for a natural gas, propane, or oil 

furnace or hot water boiler that achieves an annual fuel utilization 

efficiency rate of at least 95.

For a natural gas, propane, or oil hot water boiler or oil furnace placed 

in service after February 17, 2009, the annual fuel utilization efficiency 

rate is reduced to 90.

Line 3c. 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).

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 6

If the rules on page 3 for joint occupancy apply, cross out the preprinted 

$1,500 on line 6 and enter on line 6 the smaller of:

1. The amount on line 4, or

2. $1,500 multiplied by a fraction. The numerator is the amount on line 

4. The denominator is the total amount from line 4 for all owners.

For more details, see Joint occupancy on page 3.

Part II

Residential Energy Efficient Property Credit

Also include on lines 12 through 15, and 18, 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 12

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

Qualified solar electric property costs on page 4.

Line 13

Enter the amounts you paid for qualified solar water heating property. 

See Qualified solar water heating property costs on page 4.

Line 14

Enter the amounts you paid for qualified small wind energy property. 

See Qualified small wind energy property costs on page 4.

Line 15

Enter the amounts you paid for qualified geothermal heat pump 

property. See Qualified geothermal heat pump property costs on page 4.

Line 18

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

fuel cell property costs on page 4.

Line 25

If you are claiming the child tax credit for 2009, include on this line the 

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

If you are not claiming the child tax credit for 2009, 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 28

If you cannot use all of the credit because of the tax liability limit (line 26 

is less than line 23), you can carry the unused portion of the credit to 

2010.

Paperwork Reduction Act Notice. We ask for the information on this 

form to carry out the Internal Revenue laws of the United States. You 

are required to give us the information. We need it to ensure that you are 

complying with these laws and to allow us to figure and collect the right

amount of tax.

 You are not required to provide the information requested on a form 

that is subject to the Paperwork Reduction Act unless the form displays 

a valid OMB control number. Books or records relating to a form or its 

instructions must be retained as long as their contents may become 

material in the administration of any Internal Revenue law. Generally, tax 

returns and return information are confidential, as required by section 

6103.

 The average time and expenses required to complete and file this 

form will vary depending on individual circumstances. For the estimated 

averages, see the instructions for your income tax return.

If you have suggestions for making this form simpler, we would be 

happy to hear from you. See the instructions for your income tax return.