Form 5695 – Residential Energy Credits

Last reviewed: 2025‑10‑26

Use the IRS Form 5695: Residential Energy Credits (2024) Tax Form Calculator IRS Form 5695: Residential Energy Credits (2024) as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 5695 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

IRS Form 5695 allows eligible taxpayers to claim two separate energy-related tax credits: the Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit. These incentives support investments in renewable energy systems and energy-saving improvements for U.S. residences.

Who Can File Form 5695?

You may use Form 5695 if you incurred qualifying costs during 2024 for energy-efficient upgrades or clean energy systems in your primary residence or second home in the United States. The IRS requires these improvements to meet specific federal energy-efficiency or renewable standards to be eligible for a credit.

Clean Energy Credit: Applies to solar panels, solar water heaters, geothermal systems, wind turbines, battery storage, and fuel cells. The credit equals 30% of total cost.
Home Improvement Credit: Applies to insulation, energy-efficient windows, doors, HVAC systems, electrical panels, and home energy audits. Subject to annual and category-specific limits.

Residential Energy Credits
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 2015.
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% ()			6
7a	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) Caution: If you checked the “No” box, you cannot take a credit for qualified fuel cell property. Skip lines 7b through 11.			7a	Yes No
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% ()		9
10	Kilowatt capacity of property on line 8 above ▸ _____ x $		10
11	Enter the smaller of line 9 or line 10			11
12	Credit carryforward from 2015. Enter the amount, if any, from your 2015 Form 5695, line 16			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 53; or Form 1040NR, line 50			15
16	Credit carryforward to 2017. If line 15 is less than line 13, subtract line 15 from line 13		16
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) Caution: If you checked the “No” box, you cannot claim the nonbusiness energy property credit. Do not complete Part II.			17a	Yes No
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? 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.			17c	Yes No
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 version 6.0 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 version 6.0 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 prior to 2016, 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% ()			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 53; or Form 1040NR, line 50			30

How the Credits Work

Residential Clean Energy Credit: Equal to 30% of qualified expenditures for eligible clean energy systems installed in 2024. No annual limit, and unused amounts carry forward.
Energy Efficient Home Improvement Credit: Provides a 30% credit on qualified costs with annual limits (e.g., $1,200 for most improvements; $2,000 for heat pumps and biomass stoves).
Credits reduce your federal tax liability but are nonrefundable. Excess Clean Energy Credit may carry forward; Home Improvement Credit may not.

Last reviewed: 2025‑10‑26: If you believe this form requires an update, please contact us.

Tips for Filing

Attach Form 5695 to Form 1040, 1040‑SR, or 1040‑NR when filing.
Maintain receipts, manufacturer certification statements, and contractor details for all claimed expenses.
Use Line 30 to carry forward unused Clean Energy Credits from previous years.
Improvements must be made to an existing home located in the U.S. New construction only qualifies for certain clean energy items.

Form 5695 offers valuable tax savings when upgrading your home for energy efficiency or renewable systems. Review all qualifications carefully to ensure accurate claims and compliance.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.

Form 5695 – Residential Energy Credits

Who Can File Form 5695?