U.S. Individual Income Tax Return Forms

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2024

Instructions for Form 5695

Department of the Treasury
Internal Revenue Service

Residential Energy Credits

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Section references are to the Internal Revenue Code unless
otherwise noted.

Residential energy efficient property credit. The residential
energy efficient property credit is now the residential clean energy
credit. The credit rate for property placed in service in 2022 through
2032 is 30%.

General Instructions
Future Developments

For the latest information about developments related to Form 5695
and its instructions, such as legislation enacted after they were
published, go to IRS.gov/Form5695.

What’s New

Home energy audits. Beginning January 1, 2024, home energy
audits must be performed by a Qualified Home Energy Auditor or
under the supervision of a Qualified Home Energy Auditor. The
Qualified Home Energy Auditor must be certified by a Qualified
Certification Program at the time of the home energy audit. See
Lines 26a Through 26c, later for details.

Energy efficient home improvement credit. The nonbusiness
energy property credit is now the energy efficient home improvement
credit. The credit is extended to property placed in service through
December 31, 2032.

Purpose of Form

Use Form 5695 to figure and take your residential energy credits.
The residential energy credits are:
• The residential clean energy credit, and
• The energy efficient home improvement credit.

Also use Form 5695 to take any residential clean energy credit
carryforward from 2023 Form 5695 or to carry the unused portion of
the residential clean energy credit to 2025.

Reminders

Who Can Take the Credits

Residential clean energy credit. The residential energy efficient
property credit is now the residential clean energy credit. The credit
rate for property placed in service in 2022 through 2032 is 30%.
The residential clean energy credit added a credit for qualified
battery storage technology. Battery storage technology costs are
allowed for the residential clean energy credit for expenses paid
after December 31, 2022. See Qualified battery storage technology
costs, later, for details.
Biomass fuel property costs are no longer allowed for the
Residential Clean Energy Credit for property placed in service after
December 31, 2022.

Home. A home is where you lived in 2024 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 cost basis of your home if a residential
energy credit is allowed for any expense for any property. The
increase in the basis of the property that would result from the
expenses will be reduced by the amount of the allowed credit.

Energy efficient home improvement credit. The nonbusiness
energy property credit is now the energy efficient home improvement
credit. The credit is extended to property placed in service through
December 31, 2032.
The energy efficient home improvement credit is now divided into
two sections to differentiate between qualified energy efficiency
improvements and residential energy property expenditures.
For the energy efficient home improvement credit, the lifetime
limitation has been replaced by an annual credit limit. A 30% credit,
up to a maximum of $1,200, may be allowed for:
• Insulation material or air sealing material or systems;
• Exterior doors;
• Windows and skylights;
• Central air conditioners;
• Natural gas, propane or oil water heaters;
• Natural gas, propane or oil furnaces or hot water boilers;
• Improvements or replacement of panelboards, subpanelboards,
branch circuits or feeders; and
• Home energy audits.
The limits for each category of these items that qualify for a credit is
discussed later in Section A—Qualified Energy Efficiency
Improvements.
Heat pumps and heat pump water heaters, biomass stoves and
biomass boilers have a separate annual credit limit of $2,000 with no
lifetime limitation, which replaces the prior lifetime limitation of $500.
For additional information and Frequently Asked Questions about
energy efficient home improvements and residential clean energy
property credits, see Fact Sheet 2024-15 at https://www.irs.gov/pub/
taxpros/fs-2024-15.pdf.
Aug 21, 2024

You may be able to take the credits if you made energy saving
improvements to your home located in the United States in 2024.

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, won't 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 clean energy 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.
The residential clean energy credit (Part I) is available for
both existing homes and homes being constructed. The
CAUTION energy efficient home improvement credit (Part II) is only
available for existing homes.

!
!

CAUTION

IRS guidance issued with respect to the energy credit under
section 48, such as Notice 2018-59 and Notice 2021-41,
does not apply to the residential energy credits.

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.

Cat. No. 66412G

If you received a subsidy from a public utility for the
purchase or installation of an energy conservation product
CAUTION and that subsidy wasn't included in your gross income, you
must reduce your cost for the product by the amount of that subsidy
before you figure your credit. This rule also applies if a third party
(such as a contractor) receives the subsidy on your behalf. See Fact
Sheet 2024-15 at https://www.irs.gov/pub/taxpros/fs-2024-15.pdf,
for details.

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geothermal heat pump property must meet the requirements of the
Energy Star program that are in effect at the time of purchase. The
home doesn't have to be your main home.
Qualified battery storage technology costs. Qualified battery
storage technology costs are costs for battery storage technology
that is installed in connection with your home located in the United
States and has a capacity of at least 3 kilowatt hours.
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%.

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Residential Clean Energy Credit
(Part I)

If you made energy saving improvements to more than one home
that you used as a residence during 2024, enter the total of those
costs on the applicable line(s) of one Form 5695. For qualified fuel
cell property, see Lines 7a Through 7c, 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, battery storage
technology, and fuel cell property. Include any labor costs properly
allocable to the onsite preparation, assembly, or original installation
of the residential clean energy 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. Some solar roofing tiles and solar roofing shingles
serve the function of both traditional roofing and solar electric
collectors, and thus serve functions of both solar electric generation
and structural support. These solar roofing tiles and solar roofing
shingles can qualify for the credit. This is in contrast to structural
components such as a roof's decking or rafters that serve only a
roofing or structural function and thus do not qualify for the credit.
The home doesn't 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. Some solar roofing tiles and
solar roofing shingles serve the function of both traditional roofing
and solar electric collectors, and thus serve functions of both solar
electric generation and structural support. These solar roofing tiles
and solar roofing shingles can qualify for the credit. This is in
contrast to structural components such as a roof's decking or rafters
that serve only a roofing or structural function and thus do not qualify
for the credit. 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 doesn't 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 doesn't 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
2

Costs allocable to a swimming pool, hot tub, or any other
energy storage medium that has a function other than the
CAUTION function of such storage don't qualify for the residential clean
energy credit.

!

Joint occupancy. If you occupied your home jointly with someone
other than your spouse, each occupant must complete their 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:
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 don't apply to married individuals filing a joint return.

Example. Ava owns a house with Bruce where they both reside.
In 2024, they installed qualified fuel cell property at a cost of $20,000
with a kilowatt capacity of 5. Ava paid $12,000 towards the cost of
the property and Bruce 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 Ava is $10,002 ($16,670 x
$12,000/$20,000). The amount of cost allocable to Bruce is $6,668
($16,670 x $8,000/$20,000).

Energy Efficient Home Improvement
Credit
(Part II)
You may be able to take a credit equal to 30% of the sum of:

1. The amount paid or incurred for qualified energy efficiency
improvements installed during 2024,
2. The amount of the residential energy property costs paid or
incurred in 2024, and
3. The amount paid or incurred for home energy audits during
2024.
However, this credit is limited as follows.

• A total combined credit limit of $1,200 for qualified energy

property.
• A credit limit of $600 for any qualified energy property item.
• A combined credit limit of $600 for all exterior windows and
skylights.
• A credit limit of $250 for any qualifying exterior door and $500
total for all qualifying exterior doors.
• A combined credit limit of $2,000 for heat pump and heat pump
water heaters; biomass stoves and boilers.
• A credit limit of $150 for home energy audits.

Instructions for Form 5695 (2024)

Section A—Qualified Energy Efficiency
Improvements
Subsidized energy financing. Any amounts provided for by
subsidized energy financing can't be used to figure the energy
efficient home improvement 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.

!

details.

To qualify for the credit, qualified energy efficiency
improvements must meet certain energy efficiency
requirements. See Line 18a through Line 20a, later, for

Section B—Residential Energy Property
Expenditures

Residential energy property costs are costs of new qualified energy
property that is installed on or in connection with a home that you
used during 2024 located in the United States. Include any labor
costs properly allocable to the onsite preparation, assembly, or
original installation of the energy property. Qualified energy property
is any of the following.

• Certain electric or natural gas heat pump water heaters; electric
or natural gas heat pumps; central air conditioners; and natural gas,
propane, or oil water heaters.
• Natural gas, propane, or oil furnaces and hot water boilers.
• Certain biomass stoves and biomass boilers.
• Certain improvements or replacements of panelboards,
subpanelboards, branch circuits, or feeders.

!

CAUTION

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 energy efficient home improvement
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.

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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 2024 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 and air sealing 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 and skylights.
• Exterior doors.
For purposes of figuring the credit, don't include amounts paid for
the onsite preparation, assembly, or original installation of the
building envelope component.

CAUTION

See https://www.energy.gov/eere/buildings/25c-energy-efficienthome-improvement-credit for a listing of Qualified Certification
Programs.

To qualify for the credit, qualified energy property must meet
certain energy efficiency requirements. See Line 22a
through Line 25a and Lines 29a Through 29e, later, for

Home energy audits. Home energy audits costs are costs for an
inspection and written report for your main home located in the
United States that:
1. Identifies the most significant and cost-effective energy
efficiency improvements for the home, including an estimate of the
energy and cost savings for each improvement; and
2. Is conducted and prepared by either a Qualified Home
Energy Auditor or under the supervision of a Qualified Home Energy
Auditor.
The written report must include the following:
1. The Qualified Home Energy Auditor’s name and employer
identification number (EIN) or other type of relevant taxpayer
identifying number (TIN);
2. An attestation that the Qualified Home Energy Auditor is
certified by a Qualified Certification Program; and
3. The name of the Qualified Certification Program.

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 energy efficient
home improvement credit as follows.
1. Complete lines 17a through 30 of a separate Form 5695 for
each main home.
2. Figure the amount to be entered on line 30 of both forms and
enter the combined amount on line 30 of one of the forms.
3. On the dotted line to the left of line 30, enter “More than one
main home.” Then, complete the rest of this form.
4. Attach both forms to your return.
Joint occupancy. If you occupied your home jointly with someone,
each occupant must complete their own Form 5695. To figure the
credit, enter the amounts you paid for the items on lines 18a, 19a,
19c, 20a, 22a, 23a, 24a, 25a, 26b, or 29d.
If the aggregate credit that would be allowed to all occupants for
any item of property exceeds the credit limit below, then you must
figure your allocable share of the credit from each property. The
credit allocable to you is the credit limit for that 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.
Enter the credit allocable to you from that property on lines 18b, 19b,
19d, 20b, 22b, 23b, 24b, 25b, 26c, and 29e. Check the box on
line 32a and attach a statement explaining how you allocated the
credit.
If the total on line 27 is more than $1,200, then the credit
allocable to you is further limited. Multiply $1,200 by a fraction. The
numerator is the sum of the amounts on lines 18a, 19a, 19c, 20a,
22a, 23a, 24a, 25a, and 26b. The denominator is the total amount
paid by you and all other occupants for the corresponding
properties. Enter the result on line 28. Check the box on line 32a and
attach a statement explaining how you allocated the credit.
If line 29e is more than $2,000, then the credit allocable to you is
further limited. Multiply $2,000 by a fraction. The numerator is the
amount on line 29d. The denominator is the total amount paid by you
and all other occupants for the item of property. Enter the result on
line 29e.
The credit limit for each property is as follows.
• $1,200 for insulation or air sealing material system.
• $250 for one exterior door and $500 for all exterior doors.
• $600 for windows.
• $600 for central air conditioners.
• $600 for natural gas, propane, or oil water heaters.
• $600 for natural gas, propane, or oil furnace or hot water boilers.
• $600 for improvements or replacements of panelboards,
subpanelboards, branch circuits, or feeders.
• $150 for home energy audits.
• $2,000 for heat pumps and heat pump water heaters; biomass
stoves and biomass boilers.

The Qualified Home Energy Auditor must be certified by a
Qualified Certification Program at the time of the home energy audit.

Instructions for Form 5695 (2024)

3

Specific Instructions

spouse should add your qualified fuel cell property costs together on
line 8 of one Form 5695.

Part I
Residential Clean Energy Credit

If you check the “No” box, you can't include any fuel cell property
costs on line 8.

Before you begin Part I.

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Figure the amount of the credits shown in the credit limitation
worksheet if you take those credits on your return.

Include on lines 1 through 4, 5b, and 8 any labor costs

TIP 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.

In the section above line 1, enter the complete address of the
home where you installed the qualified residential clean energy
property or technology associated with lines 1 through 4 and 5b. If
you made improvements to more than one home, list the complete
address of the home with the greatest total cost in the section above
line 1. Then, attach a statement listing the additional addresses to
Form 5695.

Line 1

If you occupy your home jointly with someone or your filing status
is married filing separately, and you are filing separate Forms 5695
to claim the credit for qualified fuel cell property costs, check the box
on line 7c and attach a statement explaining how you allocated the
costs. See Joint occupancy, earlier.

Line 8

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

Line 14

Complete the following worksheet to figure the amount to enter on
line 14.

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 5a and 5b
To qualify for the credit, the qualified battery storage technology
must have a capacity of at least 3 kilowatt hours.
If the qualified battery storage technology has a capacity of 3
kilowatt hours or greater, then check the “Yes” box, enter the
amounts you paid for qualified battery storage technology on line 5b.
If you check the “No” box, you can't include any battery storage
technology costs on line 5b. See Qualified battery storage
technology costs, earlier.

Lines 7a Through 7c
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 “Yes” box, enter the full address of your main home during
2024 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 statement
providing the address of your spouse's main home. You and your
4

Instructions for Form 5695 (2024)

Residential Clean Energy Credit Limit
Worksheet—Line 14
1.
2.

Enter the amount from Form 1040,
1040-SR, or 1040-NR, line 18 . .
Enter the total of the following
credit(s)/adjustment(s) if you are
taking the credit(s)/adjustment(s) on
your 2024 income tax return:
+ Amount on Schedule 3 (Form
1040), line 6l . . . . . . . . . . . . . . .
+ Foreign Tax Credit, Schedule 3
(Form 1040), line 1 . . . . . . . . . .
+ Credit for Child and Dependent
Care Expenses, Schedule 3 (Form
1040), line 2 . . . . . . . . . . . . . . .
+ Credit for the Elderly or the
Disabled, Schedule 3 (Form 1040),
line 6d . . . . . . . . . . . . . . . . . . .
+ Nonrefundable Education Credits,
Schedule 3 (Form 1040), line 3 . .
+ Retirement Savings Contributions
Credit, Schedule 3 (Form 1040),
line 4 . . . . . . . . . . . . . . . . . . . .
+ Energy efficient home
improvement credit, Form 5695,
line 32* . . . . . . . . . . . . . . . . . .
+ Credit for previously owned clean
vehicles, Schedule 3 (Form 1040),
line 6m . . . . . . . . . . . . . . . . . . .
+ Clean Vehicle Credit, Schedule 3
(Form 1040), line 6f . . . . . . . . . .
+ Child tax credit or credit for other
dependents, Form 1040, 1040-SR,
or 1040-NR, line 19* . . . . . . . . .
+ Mortgage Interest Credit,
Schedule 3 (Form 1040),
line 6g . . . . . . . . . . . . . . . . . . .
+ Adoption Credit, Schedule 3 (Form
1040), line 6c . . . . . . . . . . . . . .
+ Carryforward of the District of
Columbia First-Time Homebuyer
Credit, Schedule 3 (Form 1040),
line 6h . . . . . . . . . . . . . . . . . . .
Note. Enter the total of the
preceding credit(s)/adjustment(s),
only if allowed and taken on your
2024 income tax return. Not all
credits/adjustments are available for
all years nor for all filers. See the
instructions for your 2024 income tax
return.
Subtract line 2 from line 1. Also enter
this amount on Form 5695, line 14. If
zero or less, enter -0- on Form 5695,
lines 14 and 15 . . . . . . . . . . . . .

1.

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. Don't attach the
certification to your return. Keep it for your records.

Line 16
If you can't use all of the credit because of the tax liability limit (that
is, line 14 is less than line 13), you can carry the unused portion of
the credit to 2025.

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3.

File this form even if you can't use any of your credit in 2024.

Part II
Energy Efficient Home Improvement
Credit

Section A—Qualified Energy Efficiency
Improvements
Lines 17a Through 17e

Line 17a. To qualify for the credit, any qualified energy efficiency
improvements must have been for your main home located in the
United States. See Main home, earlier. If you check the “No” box,
you can't take the energy efficient home improvement credit.
Line 17b. To qualify for the credit, you must be the original user of
the qualified energy efficiency improvements. If you check the “No”
box, you can't take the energy efficient home improvement credit.
Line 17c. To qualify for the credit, the components must be
reasonably expected to remain in use for at least 5 years on your
main home located in the United States. If you check the “No” box,
you can't take the energy efficient home improvement credit.
Line 17d. Enter the complete address of your main home during
2024. You can only claim the energy efficient home improvement
credit on one main home.
Line 17e. You cannot claim the credit for expenses related to the
construction of a new home. If you are claiming the credit only for
expenses for qualified improvements to an existing home or for an
addition or renovation to an existing home, check the “No” box. If the
qualified improvements for which you are seeking to claim the credit
are related to the construction of a new home, check the “Yes” box. If
you check the “Yes” box, skip lines 18a through 20b.

Lines 18a and 18b
Note. A reference to the IECC is a reference to the International
Energy Conservation Code as in effect (with supplements) on
January 1, 2021, for components placed in service during 2024.

!

CAUTION

2.

3.

* Include the amount in the instructions for Schedule 8812 (Form
1040), Credit Limit Worksheet B, line 14, instead of the amount from
Form 1040, 1040-SR, or 1040-NR, line 19, if the instructions for
Schedule 8812 (Form 1040) direct you to complete Credit Limit
Worksheet B.

Instructions for Form 5695 (2024)

Don't include on lines 18a, 19a, 19c, and 20a any amounts
paid for the onsite preparation, assembly, or original
installation of the components.

Line 18a. Enter the amounts you paid for any insulation material or
air sealing 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 criteria established by the IECC.
Don't enter more than $1,200 on line 18b.
A component isn't specifically and primarily designed to
reduce the heat loss or gain of your home if it provides
CAUTION 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.

!

5

Lines 19a Through 19e
Line 19a. Enter the amounts you paid for the most expensive
exterior door that meets the Energy Star program requirements.
Don't enter more than $250 on line 19b.
Line 19c. Enter the amounts you paid for all other qualifying exterior
doors in 2024.
Don't enter more than $500 on line 19e.

fuel blends at least 20% of the volume of which consists of an
eligible fuel.

Line 25a
Enter the amounts you paid for improvements or replacement of
panelboards, subpanelboards, branch circuits, or feeders that were
installed in a manner consistent with the National Electric Code,
have a load capacity of at least 200 amps, and were installed with
qualified energy efficiency improvements or qualified energy
property.

TREASURY/IRS
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Line 20a

Enter the amounts you paid for exterior windows and skylights that
meet Energy Star certification requirements.
Don't enter more than $600 on line 20b.

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.
Don't attach the certification to your return. Keep it for your records.

Section B—Residential Energy Property
Expenditures
Lines 21a Through 21c

Line 21a. To qualify for the credit, any qualified energy property
installed on or in your home must be located in the United States. If
you check the “No” box, you can't take the energy efficient home
improvement credit for your residential energy property costs.

Line 21b. To qualify for the credit, the qualified energy property
must have been originally placed in service by you. If you check the
“No” box, you can't take the energy efficient home improvement
credit for your residential energy property costs.
Line 21c. Enter the full address of each home where you installed
qualified residential energy property.

Include on lines 22a, 23a, 24a, 25a, 29a, 29b, and 29c any

TIP labor costs properly allocable to the onsite preparation,
assembly, or original installation of the property.

Line 22a
Enter the amounts you paid for central air conditioners that achieve
the highest efficiency tier that has been established by the
Consortium for Energy Efficiency (CEE) that is in effect as of the
beginning of the calendar year in which the property is placed in
service.
Don't enter more than $600 on line 22b.

Line 23a
Enter the amounts you paid for natural gas, propane, or oil water
heaters that achieve the highest efficiency tier established by the
CEE that is in effect as of the beginning of the calendar year in which
the property is placed in service.

Don't enter more than $600 on line 25b.

Lines 26a Through 26c

Line 26a. To qualify for the credit, a home energy audit must have
included an inspection of your main home located in the United
States and a written report prepared by a Qualified Home Energy
Auditor or under the supervision of a Qualified Home Energy Auditor.
If you check the “No” box, you can't claim the home energy audit
credit.
Line 26b. Enter the amounts you paid for home energy audits in
2024.
Don’t enter more than $150 on line 26c.
Beginning January 1, 2024, home energy audits must be
performed by a Qualified Home Energy Auditor or under the
CAUTION supervision of a Qualified Home Energy Auditor. The
Qualified Home Energy Auditor must be certified by a Qualified
Certification Program at the time of the home energy audit. See
Home energy audits, earlier.

!

Lines 29a Through 29e

Line 29a. Enter the amounts you paid for electric or natural gas
heat pumps that achieve the highest efficiency tier established by
the CEE that is in effect as of the beginning of the calendar year in
which the property is placed in service.
Line 29b. Enter the amounts you paid for electric or natural gas
heat pump water heaters that achieve the highest efficiency tier
established by the CEE that is in effect as of the beginning of the
calendar year in which the property is placed in service.
Line 29c. Enter the amounts you paid for biomass stoves and
biomass boilers that have a thermal efficiency rating of at least 75%
(measured by the higher heating value of the fuel).
Don’t enter more than $2,000 on line 29e.
Manufacturer’s certification. For purposes of taking the credit,
you can rely on a manufacturer’s certification in writing that a product
is qualified energy property. Don't attach the certification to your
return. Keep it for your records.

Line 31
Complete the worksheet below to figure the amount to enter on
line 31.

Don't enter more than $600 on line 23b.

Line 24a
Enter the amounts you paid for a natural gas, propane, or oil furnace
or hot water boilers that achieve the highest efficiency tier
established by the CEE that is in effect as of the beginning of the
calendar year in which the property is placed in service. In addition,
oil furnaces and hot water boilers placed in service after December
31, 2022, and before January 1, 2027, must meet the 2021 Energy
Star efficiency criteria and be rated by the manufacturer for use with
6

Instructions for Form 5695 (2024)

Energy Efficient Home Improvement Credit Limit
Worksheet—Line 31
1.
2.

Enter the amount from Form 1040,
1040-SR, or 1040-NR, line 18 . .
Enter the total of the following
credit(s)/adjustment(s) if you are
taking the credit(s)/adjustment(s) on
your 2024 income tax return:
+ Amount on Schedule 3 (Form
1040), line 6l . . . . . . . . . . . . . .
+ Foreign Tax Credit, Schedule 3
(Form 1040), line 1 . . . . . . . . . .
+ Credit for Child or Dependent Care
Expenses, Schedule 3 (Form 1040),
line 2 . . . . . . . . . . . . . . . . . . . .
+ Credit for the Elderly or the
Disabled, Schedule 3 (Form 1040),
line 6d . . . . . . . . . . . . . . . . . . .
+ Nonrefundable Education Credits,
Schedule 3 (Form 1040), line 3 . .
+ Retirement Savings Contributions
Credit, Schedule 3 (Form 1040),
line 4 . . . . . . . . . . . . . . . . . . . .
Note. Enter the total of the
preceding credit(s)/adjustment(s)
only if allowed and taken on your
2024 income tax return. Not all
credits/adjustments are available for
all years nor for all filers. See the
instructions for your 2024 income
tax return.
Subtract line 2 from line 1. Also
enter this amount on Form 5695,
line 31. If zero or less, enter -0- on
Form 5695, lines 31 and 32 . . . .

1.

Line 32a
If you occupy your home jointly or your filing status is married filing
separately, and you are filing separate Forms 5695 to claim the
energy efficient home improvement credit, check the box on line 32a
and attach a statement explaining how you allocated the credit. See
Joint occupancy, earlier.

TREASURY/IRS
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August 27, 2024

3.

Instructions for Form 5695 (2024)

2.

3.

7