Form 5695 Residental Energy Credits

Form

5695

Department of the Treasury
Internal Revenue Service

OMB No. 1545-0074

Residential Energy Credits
▶

2012

Information about Form 5695 and its instructions is at www.irs.gov/form5695.
▶ Attach to Form 1040 or Form 1040NR.

Name(s) shown on return

Attachment
Sequence No. 158
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 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
7a

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

6

.

.

.

.

.

.

.

.

.

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% (.30) .

.

.

.

.

.

.

.

.

.

.

.

.

.

9

.

10

Kilowatt capacity of property on line 8 above ▶

11

Enter the smaller of line 9 or line 10

12

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

13

Add lines 6, 11, and 12

14

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

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.

.

.

.

11

.

.

12

.

.

13

Subtract line 15 from line 14. If zero or less, enter -0- here and on line 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 . . . . . . . . . . . . .
Credit carryforward to 2013. If line 17 is less than line 13, subtract
line 17 from line 13 . . . . . . . . . . . . . . . . .
18

16

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

18

For Paperwork Reduction Act Notice, see your tax return instructions.

.

.

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.
16
17

10

x $1,000

.

.

.
.

}

.

.

.

.

.

.

.

.

.

.

.

.

.

.

14

15

Cat. No. 13540P

17

Form 5695 (2012)

Form 5695 (2012)

Part II
19a

Page

2

Nonbusiness Energy Property Credit

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

19c

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

20
a
b
c
d
e
f
21
a

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.
Lifetime limitation. Amounts claimed in 2006, 2007, 2009, 2010, and
2011.
Amount, if any, from line 12 of your 2006 Form 5695 . . . . . . . 20a
Amount, if any, from line 15 of your 2007 Form 5695 . . . . . . . 20b
Amount, if any, from line 11 of your 2009 Form 5695 . . . . . . . 20c
Amount, if any, from line 11 of your 2010 Form 5695 . . . . . . . 20d
Amount, if any, from line 14 of your 2011 Form 5695 . . . . . . . 20e
Add lines 20a through 20e. If $500 or more, stop; you cannot take the nonbusiness energy property credit
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).
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 . . . . . . . .

b Exterior doors that meet or exceed the Energy Star program requirements . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . .
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
$2,000
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 . . . . . . . . . . . . . . . . . . . . .
22
Add lines 21a, 21b, 21c, and 21h . . . . . . . . . . . . . . . . . . . . . .
23
Multiply line 22 by 10% (.10) . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . .
b Qualified natural gas, propane, or oil furnace or hot water boiler. Do not enter more than $150 . .
c Advanced main air circulating fan used in a natural gas, propane, or oil furnace. Do not enter more than $50 .
25
Add lines 24a through 24c . . . . . . . . . . . . . . . . . . . . . . . .
26
Add lines 23 and 25 . . . . . . . . . . . . . . . . . . . . . . . . . .
27
Maximum credit amount. (If you jointly occupied the home, see instructions) . . . . . . . .
28
Enter the amount, if any, from line 20f . . . . . . . . . . . . . . . . . . . .
29
Subtract line 28 from line 27. If zero or less, stop; you cannot take the nonbusiness energy property credit .
30
Enter the smaller of line 26 or line 29 . . . . . . . . . . . . . . . . . . . . .
31
Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet (see instructions) .
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 . . . . . . . . . . . . . .

20f

21a
21b

21c

21h
22
23

24a
24b
24c
25
26
27
28
29
30
31

$500

32
Form 5695 (2012)

Form 5695 (2012)

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.

!
▲

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
CAUTION
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.

Page

3

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)

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.

!
▲

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.

CAUTION

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.

Page

• 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.

• Exterior windows and skylights.

Specific Instructions

• Exterior doors.

Part I

• 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.

4

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)

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.

Page

5

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.

!
▲

Do not include on lines 21a through 21d any amounts
paid for the onsite preparation, assembly, or original
installation of the components.

CAUTION

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.

!
▲

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
CAUTION
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)

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.

Page

6

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
1.
Form 1040NR, line 44 . . . . . . .
2. Enter the total, if any, of your credits
Form 1040, lines 47 through 50,
Schedule R, line 22; or Form 1040NR,
45 through 47 . . . . . . . .

from
and
lines
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
3.
energy property credit . . . . . . .