Form 5695, Residential Energy Credits
What is Form 5695?
In order to claim residential energy credits, you will need to fill out Form 5695. The residential energy credits are the nonbusiness energy property credit and the residential energy efficient property credit.
What is the non-business energy property credit?
The non-business energy property credit can reduce your tax bill for some of the costs you incur to make energy-efficient improvements to your home. Your tax credit equals 10 percent of those costs, with a maximum credit of $500.
Eligible costs include the purchase price and installation charges for efficient heating and air conditioning systems, water heaters and stoves that run on biomass fuel. You may also claim a credit for the purchase of energy-efficient doors, windows, skylights, certain roofs and the cost of increasing insulation in the home. However, you cannot include the installation costs for this equipment in the credit.
What is the residential energy-efficient property credit?
In addition to the non-business credit, you may also claim the residential energy-efficient property credit on the same Form 5695 when you acquire alternative energy equipment for use in the home. The allowable credit is equal to 30 percent of an unlimited amount of costs you incur to purchase and install solar electric systems, geothermal heat pumps, solar hot water heaters, wind turbines and fuel cell property. Before you purchase any of this equipment, be sure to check the manufacturer’s tax credit certification statement to ensure that its purchase qualifies you for the credit.
Filling out Form 5695 in TurboTax
When you have made improvements to your home, TurboTax will ask you the right questions to gather the information. We will enter it in the form for you so you don't need to worry about it.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for this topic, follow these directions.
- Select the Federal Taxes tab (the Personal tab in the Home & Business edition).
- Select the Deductions & Credits subtab.
- Scroll down the Deductions & Credits screen until you see the Your Home group.
- Click on the Start/Update button to the right of the Home Energy Credits category.
- Follow the prompts.
If you need to correct or change any information you have entered on your 5695, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return, simply follow the navigation instructions above, and correct or change your information.
- If you have already filed your return, you will need to amend your return. Please click here for instructions.
For questions about printing, please click here.
If you have questions about the availability of form 5695, please click here.