5695 Residental Energy Credits

Note: The draft you are looking for begins on the next page.

Caution: DRAFT—NOT FOR FILING
This is an early release draft of an IRS tax form, instructions, or publication,
which the IRS is providing for your information. Do not file draft forms and do
not rely on draft forms, instructions, and publications for filing. We do not
release draft forms until we believe we have incorporated all changes (except
when explicitly stated on this coversheet). However, unexpected issues
occasionally arise, or legislation is passed—in this case, we will post a new draft
of the form to alert users that changes were made to the previously posted draft.
Thus, there are never any changes to the last posted draft of a form and the
final revision of the form. Forms and instructions generally are subject to OMB
approval before they can be officially released, so we post only drafts of them
until they are approved. Drafts of instructions and publications usually have
some changes before their final release.
Early release drafts are at IRS.gov/DraftForms and remain there after the
final release is posted at IRS.gov/LatestForms. All information about all forms,
instructions, and pubs is at IRS.gov/Forms.
Almost every form and publication has a page on IRS.gov with a friendly
shortcut. For example, the Form 1040 page is at IRS.gov/Form1040; the Pub.
501 page is at IRS.gov/Pub501; the Form W-4 page is at IRS.gov/W4; and the
Schedule A (Form 1040/SR) page is at IRS.gov/ScheduleA. If typing in a link
above instead of clicking on it, be sure to type the link into the address bar of
your browser, not a Search box.
If you wish, you can submit comments to the IRS about draft or final forms,
instructions, or publications at IRS.gov/FormsComments. We cannot respond to
all comments due to the high volume we receive and may not be able to
consider many suggestions until the subsequent revision of the product.
If you have comments on reducing paperwork and respondent (filer) burden,
with respect to draft or final forms, please respond to the relevant information
collection through the Federal Register process; for more info, click here.

Form

5695

OMB No. 1545-0074

Residential Energy Credits
▶

Department of the Treasury
Internal Revenue Service

2021

Go to www.irs.gov/Form5695 for instructions and the latest information.
▶ Attach to Form 1040, 1040-SR, or 1040-NR.

Attachment
Sequence No. 158
Your social security number

Name(s) shown on return

Part I

DRAFT AS OF
June 29, 2021
DO NOT FILE

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 2020.
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

Qualified biomass fuel property costs

6a

Add lines 1 through 5 .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

6a

b Multiply line 6a by 26% (0.26) .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

6b

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.) . . . . . . . . . . . . . ▶

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 26% (0.26)

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

9

10

Kilowatt capacity of property on line 8 above .

.

11

Enter the smaller of line 9 or line 10

.

12

Credit carryforward from 2020. Enter the amount, if any, from your 2020 Form 5695, line 16

13

Add lines 6b, 11, and 12 .

14

Limitation based on tax liability. Enter the amount from the Residential Energy Efficient Property
Credit Limit Worksheet (see instructions) . . . . . . . . . . . . . . . . . . . .

14

Residential energy efficient property credit. Enter the smaller of line 13 or line 14. Also include this
amount on Schedule 3 (Form 1040), line 5 . . . . . . . . . . . . . . . . . . . .

15

15

16

.

.

.

.

.

.

.

.

.

.

.

.

.

.

▶

.

.

.

.

.

.

.

.

10

x $1,000
.

.

.

.

.

.

.

.

.

.

.

.

Credit carryforward to 2022. If line 15 is less than line 13, subtract line 15
from line 13 . . . . . . . . . . . . . . . . . . . . . .

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

.

.

.

.

.

.

.

.

.

.

.

11

.

.

.

12

.

.

.

13

16

Cat. No. 13540P

Form 5695 (2021)

Form 5695 (2021)

Part II

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) . . . . . . . . . . . . . . . ▶
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.

17a

17a

DRAFT AS OF
June 29, 2021
DO NOT FILE
Number and street

Yes

No

Yes

No

Unit No.

City, State, and ZIP code

c

18
19

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

Lifetime limitation. Enter the amount from the Lifetime Limitation Worksheet (see instructions) . . .
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 . . . . . . . . . .
b Exterior doors that meet or exceed the version 6.0 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 . . . . . . . . . . . . . . . . . . . . . . . . . .

18

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
$2,000
f If you claimed window expenses on your Form 5695 prior to 2021, 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 . . . . . . . . . . . . . . . . . . . . .
20
Add lines 19a, 19b, 19c, and 19h . . . . . . . . . . . . . . . . . . . . . . .
21
Multiply line 20 by 10% (0.10) . . . . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . .
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Add lines 22a through 22c . . . . . . . . . . . . . . . . . . . . . . . . .
24
Add lines 21 and 23 . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Maximum credit amount. (If you jointly occupied the home, see instructions) . . . . . . . . .
26
Enter the amount, if any, from line 18 . . . . . . . . . . . . . . . . . . . . . .
27
Subtract line 26 from line 25. If zero or less, stop; you cannot take the nonbusiness energy property
credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Enter the smaller of line 24 or line 27 . . . . . . . . . . . . . . . . . . . . . .
29
Limitation based on tax liability. Enter the amount from the Nonbusiness Energy Property Credit Limit
Worksheet (see instructions)
. . . . . . . . . . . . . . . . . . . . . . . .
30
Nonbusiness energy property credit. Enter the smaller of line 28 or line 29. Also include this amount
on Schedule 3 (Form 1040), line 5 . . . . . . . . . . . . . . . . . . . . . . .

19a
19b

19c

19h
20
21

22a
22b
22c
23
24
25
26

$500

27
28
29
30
Form 5695 (2021)