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2024

Instructions for Form 5695

Residential Energy Credits

Section references are to the Internal Revenue Code unless property credits, see Fact Sheet 2024-15 at https://www.irs.gov/pub/
otherwise noted. taxpros/fs-2024-15.pdf.

Purpose of Form
General Instructions Use Form 5695 to figure and take your residential energy credits.
The residential energy credits are:
Future Developments • The residential clean energy credit, and
For the latest information about developments related to Form 5695 • The energy efficient home improvement credit.
and its instructions, such as legislation enacted after they were
published, go to IRS.gov/Form5695. Also use Form 5695 to take any residential clean energy credit
carryforward from 2023 or to carry the unused portion of the
residential clean energy credit to 2025.
What’s New
Home energy audits. Beginning January 1, 2024, home energy Who Can Take the Credits
audits must be performed by a Qualified Home Energy Auditor or You may be able to take the credits if you made energy saving
under the supervision of a Qualified Home Energy Auditor. The improvements to your home located in the United States in 2024.
Qualified Home Energy Auditor must be certified by a Qualified
Certification Program at the time of the home energy audit. See Home. A home is where you lived in 2024 and can include a house,
Lines 26a Through 26c, later for details. houseboat, mobile home, cooperative apartment, condominium, and
a manufactured home that conforms to Federal Manufactured Home
Reminders Construction and Safety Standards.
You must reduce the cost basis of your home if a residential
Residential clean energy credit. The residential energy efficient energy credit is allowed for any expense for any property. The
property credit is now the residential clean energy credit. The credit increase in the basis of the property that would result from the
rate for property placed in service in 2022 through 2032 is 30%. expenses will be reduced by the amount of the allowed credit.
The residential clean energy credit added a credit for qualified Main home. Your main home is generally the home where you live
battery storage technology. Battery storage technology costs are most of the time. A temporary absence due to special
allowed for the residential clean energy credit for expenses paid circumstances, such as illness, education, business, military service,
after December 31, 2022. See Qualified battery storage technology or vacation, won't change your main home.
costs, later, for details.
Biomass fuel property costs are no longer allowed for the Costs. For purposes of both credits, costs are treated as being paid
residential clean energy credit for property placed in service after when the original installation of the item is completed, or, in the case
December 31, 2022. of costs connected with the reconstruction of your home, when your
original use of the reconstructed home begins. For purposes of the
Energy efficient home improvement credit. The nonbusiness residential clean energy credit only, costs connected with the
energy property credit is now the energy efficient home improvement construction of a home are treated as being paid when your original
credit. The credit is extended to property placed in service through use of the constructed home begins. If less than 80% of the use of
December 31, 2032. an item is for nonbusiness purposes, only that portion of the costs
The energy efficient home improvement credit is now divided into that is allocable to the nonbusiness use can be used to determine
two sections to differentiate between qualified energy efficiency either credit.
improvements and residential energy property expenditures. The residential clean energy credit (Part I) is available for
For the energy efficient home improvement credit, the lifetime ! both existing homes and homes being constructed. The
limitation has been replaced by an annual credit limit. A 30% credit, CAUTION energy efficient home improvement credit (Part II) is only
up to a maximum of $1,200, may be allowed for: available for existing homes.
• Insulation material or air sealing material or systems;
• Exterior doors; IRS guidance issued with respect to the energy credit under
• Windows and skylights; ! section 48, such as Notice 2018-59 and Notice 2021-41,
• Central air conditioners; CAUTION does not apply to the residential energy credits.
• Natural gas, propane or oil water heaters;
• Natural gas, propane or oil furnaces or hot water boilers; Association or cooperative costs. If you are a member of a
• Improvements or replacement of panelboards, subpanelboards, condominium management association for a condominium you own
branch circuits or feeders; and or a tenant-stockholder in a cooperative housing corporation, you
• Home energy audits. are treated as having paid your proportionate share of any costs of
The limits for each category of these items that qualify for a credit is such association or corporation.
discussed later in Section A—Qualified Energy Efficiency If you received a subsidy from a public utility for the
Improvements. ! purchase or installation of an energy conservation product
Heat pumps and heat pump water heaters, biomass stoves and CAUTION and that subsidy wasn't included in your gross income, you
biomass boilers have a separate annual credit limit of $2,000 with no must reduce your cost for the product by the amount of that subsidy
lifetime limitation, which replaces the prior lifetime limitation of $500. 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
For additional information and frequently asked questions about Sheet 2024-15 at https://www.irs.gov/pub/taxpros/fs-2024-15.pdf,
energy efficient home improvements and residential clean energy for details.

Instructions for Form 5695 (2024) Catalog Number 66412G
Nov 29, 2024 Department of the Treasury Internal Revenue Service www.irs.gov

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Residential Clean Energy Credit Qualified fuel cell property costs. Qualified fuel cell property
costs are costs for qualified fuel cell property installed on or in
(Part I) connection with your main home located in the United States.
If you made energy saving improvements to more than one home Qualified fuel cell property is an integrated system comprised of a
that you used as a residence during 2024, enter the total of those fuel cell stack assembly and associated balance of plant
costs on the applicable line(s) of one Form 5695. For qualified fuel components that converts a fuel into electricity using
cell property, see Lines 7a Through 7c, later. electrochemical means. To qualify for the credit, the fuel cell property
must have a nameplate capacity of at least one-half kilowatt of
You may be able to take a credit of 30% of your costs of qualified electricity using an electrochemical process and an electricity-only
solar electric property, solar water heating property, small wind generation efficiency greater than 30%.
energy property, geothermal heat pump property, battery storage
technology, and fuel cell property. Include any labor costs properly Costs allocable to a swimming pool, hot tub, or any other
allocable to the onsite preparation, assembly, or original installation ! energy storage medium that has a function other than the
of the residential clean energy property and for piping or wiring to CAUTION function of such storage don't qualify for the residential clean
interconnect such property to the home. The credit amount for costs energy credit.
paid for qualified fuel cell property is limited to $500 for each
one-half kilowatt of capacity of the property. Joint occupancy. If you occupied your home jointly with someone,
each occupant must complete their own Form 5695. To figure the
Qualified solar electric property costs. Qualified solar electric credit, the maximum qualifying costs that can be taken into account
property costs are costs for property that uses solar energy to by all occupants for qualified fuel cell property costs is $1,667 for
generate electricity for use in your home located in the United each one-half kilowatt of capacity of the property. The amount
States. No costs relating to a solar panel or other property installed allocable to you for qualified fuel cell property costs is the lesser of:
as a roof (or portion thereof) will fail to qualify solely because the 1. The amount you paid, or
property constitutes a structural component of the structure on which
it is installed. Some solar roofing tiles and solar roofing shingles 2. The maximum qualifying cost of the property multiplied by a
serve the function of both traditional roofing and solar electric fraction. The numerator is the amount you paid and the denominator
collectors, and thus serve functions of both solar electric generation is the total amount paid by you and all other occupants.
and structural support. These solar roofing tiles and solar roofing These rules don't apply to married individuals filing a joint return.
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 Example. Ava owns a house with Bruce where they both reside.
roofing or structural function and thus do not qualify for the credit. In 2024, they installed qualified fuel cell property at a cost of $20,000
The home doesn't have to be your main home. 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
Qualified solar water heating property costs. Qualified solar allocated is $16,670 ($1,667 x 10 (kilowatt capacity x 2)). The
water heating property costs are costs for property to heat water for amount of cost allocable to Ava is $10,002 ($16,670 x
use in your home located in the United States if at least half of the $12,000/$20,000). The amount of cost allocable to Bruce is $6,668
energy used by the solar water heating property for such purpose is ($16,670 x $8,000/$20,000).
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 Energy Efficient Home Improvement
solely because the property constitutes a structural component of
the structure on which it is installed. Some solar roofing tiles and Credit
solar roofing shingles serve the function of both traditional roofing
and solar electric collectors, and thus serve functions of both solar (Part II)
electric generation and structural support. These solar roofing tiles You may be able to take a credit equal to 30% of the sum of:
and solar roofing shingles can qualify for the credit. This is in
contrast to structural components such as a roof's decking or rafters 1. The amount paid or incurred for qualified energy efficiency
that serve only a roofing or structural function and thus do not qualify improvements installed during 2024,
for the credit. To qualify for the credit, the property must be certified 2. The amount of the residential energy property costs paid or
for performance by the nonprofit Solar Rating Certification incurred in 2024, and
Corporation or a comparable entity endorsed by the government of 3. The amount paid or incurred for home energy audits during
the state in which the property is installed. The home doesn't have to 2024.
be your main home.
However, this credit is limited as follows.
Qualified small wind energy property costs. Qualified small • A total combined credit limit of $1,200 for qualified energy
wind energy property costs are costs for property that uses a wind property.
turbine to generate electricity for use in connection with your home • A credit limit of $600 for any qualified energy property item.
located in the United States. The home doesn't have to be your main • A combined credit limit of $600 for all exterior windows and
home. skylights.
Qualified geothermal heat pump property costs. Qualified • A credit limit of $250 for any qualifying exterior door and $500
geothermal heat pump property costs are costs for qualified total for all qualifying exterior doors.
geothermal heat pump property installed on or in connection with • A combined credit limit of $2,000 for heat pump and heat pump
your home located in the United States. Qualified geothermal heat water heaters; biomass stoves and boilers.
pump property is any equipment that uses the ground or ground • A credit limit of $150 for home energy audits.
water as a thermal energy source to heat your home or as a thermal Subsidized energy financing. Any amounts provided for by
energy sink to cool your home. To qualify for the credit, the subsidized energy financing can't be used to figure the energy
geothermal heat pump property must meet the requirements of the efficient home improvement credit. This is financing provided under
Energy Star program that are in effect at the time of purchase. The a federal, state, or local program, the principal purpose of which is to
home doesn't have to be your main home. provide subsidized financing for projects designed to conserve or
Qualified battery storage technology costs. Qualified battery produce energy.
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.

2 Instructions for Form 5695 (2024)

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Section A—Qualified Energy Efficiency 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.
Improvements
Married taxpayers with more than one home. If both you and
Qualified energy efficiency improvements. Qualified energy your spouse owned and lived apart in separate main homes, the limit
efficiency improvements are the following building envelope on the amount of the credit applies to each of you separately. If you
components installed on or in your main home that you owned are filing separate returns, both of you would complete a separate
during 2024 located in the United States if the original use of the Form 5695. If you are filing a joint return, figure your energy efficient
component begins with you, the component can be expected to home improvement credit as follows.
remain in use at least 5 years, and the component meets certain
energy standards. 1. Complete lines 17a through 30 of a separate Form 5695 for
• Any insulation material or system and air sealing material or each main home.
system that is specifically and primarily designed to reduce heat loss 2. Figure the amount to be entered on line 30 of both forms and
or gain of a home when installed in or on such a home. enter the combined amount on line 30 of one of the forms.
• Exterior windows and skylights. 3. On the dotted line to the left of line 30, enter “More than one
• Exterior doors. main home.” Then, complete the rest of this form.
For purposes of figuring the credit, don't include amounts paid for 4. Attach both forms to your return.
the onsite preparation, assembly, or original installation of the
building envelope component. Joint occupancy. If you occupied your home jointly with someone,
To qualify for the credit, qualified energy efficiency each occupant must complete their own Form 5695. To figure the
credit, enter the amounts you paid for the items on lines 18a, 19a,
! improvements must meet certain energy efficiency 19c, 20a, 22a, 23a, 24a, 25a, 26b, or 29d.
CAUTION requirements. See Line 18a through Line 20a, later, for
details. 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
Section B—Residential Energy Property credit allocable to you is the credit limit for that property multiplied by
Expenditures a fraction. The numerator is the amount you paid and the
Residential energy property costs are costs of new qualified energy denominator is the total amount paid by you and all other occupants.
property that is installed on or in connection with a home that you Enter the credit allocable to you from that property on lines 18b, 19b,
used during 2024 located in the United States. Include any labor 19d, 20b, 22b, 23b, 24b, 25b, 26c, and 29e. Check the box on
costs properly allocable to the onsite preparation, assembly, or line 32a and attach a statement explaining how you allocated the
original installation of the energy property. Qualified energy property credit.
is any of the following. 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
• Certain electric or natural gas heat pump water heaters; electric numerator is the sum of the amounts on lines 18a, 19a, 19c, 20a,
or natural gas heat pumps; central air conditioners; and natural gas, 22a, 23a, 24a, 25a, and 26b. The denominator is the total amount
propane, or oil water heaters. paid by you and all other occupants for the corresponding
• Natural gas, propane, or oil furnaces and hot water boilers. properties. Enter the result on line 28. Check the box on line 32a and
• Certain biomass stoves and biomass boilers. attach a statement explaining how you allocated the credit.
• Certain improvements or replacements of panelboards,
subpanelboards, branch circuits, or feeders. 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
To qualify for the credit, qualified energy property must meet amount on line 29d. The denominator is the total amount paid by you
! certain energy efficiency requirements. See Line 22a and all other occupants for the item of property. Enter the result on
CAUTION through Line 25a and Lines 29a Through 29e, later, for line 29e.
details. The credit limit for each property is as follows.
Home energy audits. Home energy audit costs are costs for an • $1,200 for insulation or air sealing material system.
inspection and written report for your main home located in the • $250 for one exterior door and $500 for all exterior doors.
United States that: • $600 for windows.
• $600 for central air conditioners.
1. Identifies the most significant and cost-effective energy • $600 for natural gas, propane, or oil water heaters.
efficiency improvements for the home, including an estimate of the • $600 for natural gas, propane, or oil furnace or hot water boilers.
energy and cost savings for each improvement; and • $600 for improvements or replacements of panelboards,
2. Is conducted and prepared by either a Qualified Home subpanelboards, branch circuits, or feeders.
Energy Auditor or under the supervision of a Qualified Home Energy • $150 for home energy audits.
Auditor. • $2,000 for heat pumps and heat pump water heaters; biomass
stoves and biomass boilers.
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 Specific Instructions
identifying number (TIN);
2. An attestation that the Qualified Home Energy Auditor is Part I
certified by a Qualified Certification Program; and
Residential Clean Energy Credit
3. The name of the Qualified Certification Program.
The Qualified Home Energy Auditor must be certified by a Before you begin Part I.
Qualified Certification Program at the time of the home energy audit. Figure the amount of the credits shown in the credit limitation
See https://www.energy.gov/eere/buildings/25c-energy-efficient- worksheet if you take those credits on your return.
home-improvement-credit for a listing of Qualified Certification
Programs. Include on lines 1 through 4, 5b, and 8 any labor costs
TIP properly allocable to the onsite preparation, assembly, or
Joint ownership of qualified property. If you and a neighbor original installation of the property and for piping or wiring to
shared the cost of qualifying property to benefit each of your main interconnect such property to the home.
homes, both of you can take the energy efficient home improvement
Instructions for Form 5695 (2024) 3

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In the section above line 1, enter the complete address of the Line 14
home where you installed the qualified residential clean energy
property or technology associated with lines 1 through 4 and 5b. If Complete the following worksheet to figure the amount to enter on
you made improvements to more than one home, list the complete line 14.
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

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

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

Joint occupants of a home who are claiming the credit for
qualified fuel cell property costs must check the box on line 7c and
attach a statement explaining how they allocated the costs among
each occupant. See Joint occupancy, earlier.

Line 8

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

4 Instructions for Form 5695 (2024)

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Residential Clean Energy Credit Limit                                 Manufacturer’s certification. For purposes of taking the credit, 
Worksheet—Line 14                                                     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.
1. Enter the amount from Form 1040, 
   1040-SR, or 1040-NR, line 18             . .   1.                  
2. Enter the total of the following                                   Line 16
   credit(s)/adjustment(s) if you are                                 If you can't use all of the credit because of the tax liability limit (that 
   taking the credit(s)/adjustment(s) on                              is, line 14 is less than line 13), you can carry the unused portion of 
   your 2024 income tax return:                                       the credit to 2025.
   + Amount on Schedule 3 (Form 
   1040), line 6l . . . . . . . . . . . . . . .                       File this form even if you can't use any of your credit in 2024.

   + Foreign Tax Credit, Schedule 3                                   Part II
   (Form 1040), line 1      . . . . . . . . . .    
   + Credit for Child and Dependent                                   Energy Efficient Home Improvement 
   Care Expenses, Schedule 3 (Form                                    Credit
   1040), line 2 . . . . . . . . . . . . . . .     
   + Credit for the Elderly or the                                    Section A—Qualified Energy Efficiency 
   Disabled, Schedule 3 (Form 1040),                                  Improvements
   line 6d  . . . . . . . . . . . . . . . . . . .  
   + Nonrefundable Education Credits,                                 Lines 17a Through 17e
   Schedule 3 (Form 1040), line 3 . .                                 Line 17a. To qualify for the credit, any qualified energy efficiency 
   + Retirement Savings Contributions                                 improvements must have been for your main home located in the 
   Credit, Schedule 3 (Form 1040),                                    United States. See Main home, earlier. If you check the “No” box, 
   line 4 . . . . . . . . . . . . . . . . . . . .                     you can't take the energy efficient home improvement credit.
   + Energy efficient home                                            Line 17b. To qualify for the credit, you must be the original user of 
   improvement credit, Form 5695,                                     the qualified energy efficiency improvements. If you check the “No” 
   line 32* . . . . . . . . . . . . . . . . . .                       box, you can't take the energy efficient home improvement credit.
   + Credit for previously owned clean                                Line 17c. To qualify for the credit, the components must be 
   vehicles, Schedule 3 (Form 1040),                                  reasonably expected to remain in use for at least 5 years on your 
   line 6m  . . . . . . . . . . . . . . . . . . .                     main home located in the United States. If you check the “No” box, 
                                                                      you can't take the energy efficient home improvement credit.
   + Clean Vehicle Credit, Schedule 3 
   (Form 1040), line 6f . . . . . . . . . .                           Line 17d. Enter the complete address of your main home during 
   + Child tax credit or credit for other                             2024. You can only claim the energy efficient home improvement 
                                                                      credit on one main home.
   dependents, Form 1040, 1040-SR, 
   or 1040-NR, line 19*       . . . . . . . . .                       Line 17e. You cannot claim the credit for expenses related to the 
   + Mortgage Interest Credit,                                        construction of a new home. If you are claiming the credit only for 
                                                                      expenses for qualified improvements to an existing home or for an 
   Schedule 3 (Form 1040),                                            addition or renovation to an existing home, check the “No” box. If the 
   line 6g  . . . . . . . . . . . . . . . . . . .                     qualified improvements for which you are seeking to claim the credit 
   + Adoption Credit, Schedule 3 (Form                                are related to the construction of a new home, check the “Yes” box. If 
   1040), line 6c . . . . . . . . . . . . . .                         you check the “Yes” box, skip lines 18a through 20b.
   + Carryforward of the District of 
   Columbia First-Time Homebuyer                                      Lines 18a and 18b
   Credit, Schedule 3 (Form 1040),                                    Note. A reference to the IECC is a reference to the International 
   line 6h  . . . . . . . . . . . . . . . . . . .                     Energy Conservation Code as in effect (with supplements) on 
   Note. Enter the total of the                                       January 1, 2021, for components placed in service during 2024.
   preceding credit(s)/adjustment(s)                                          Don't include on lines 18a, 19a, 19c, and 20a any amounts 
   only if allowed and taken on your                                  !       paid for the onsite preparation, assembly, or original 
   2024 income tax return. Not all                                    CAUTION installation of the components.
   credits/adjustments are available for 
   all years nor for all filers. See the                              Line 18a. Enter the amounts you paid for any insulation material or 
   instructions for your 2024 income tax                              air sealing material or system (including any vapor retarder or seal to 
                                                                      limit infiltration) that is specifically and primarily designed to reduce 
   return.                                        2.                  the heat loss or gain of your home when installed in or on such home 
3. Subtract line 2 from line 1. Also enter                            and meets the criteria established by the IECC.
   this amount on Form 5695, line 14. If                              Don't enter more than $1,200 on line 18b.
   zero or less, enter -0- on Form 5695, 
   lines 14 and 15 . . . . . . . . . . . . .      3.                          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 
* Include the amount in the instructions for Schedule 8812 (Form      siding) or its principal purpose is to serve any function unrelated to 
1040), Credit Limit Worksheet B, line 14, instead of the amount from  the reduction of heat loss or gain.
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)                                                                                                                 5

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Lines 19a Through 19e fuel blends at least 20% of the volume of which consists of an
eligible fuel.
Line 19a. Enter the amounts you paid for the most expensive
exterior door that meets the Energy Star program requirements.
Line 25a
Don't enter more than $250 on line 19b.
Line 19c. Enter the amounts you paid for all other qualifying exterior Enter the amounts you paid for improvements or replacement of
doors in 2024. panelboards, subpanelboards, branch circuits, or feeders that were
installed in a manner consistent with the National Electric Code,
Don't enter more than $500 on line 19e. have a load capacity of at least 200 amps, and were installed with
qualified energy efficiency improvements or qualified energy
Line 20a property.
Enter the amounts you paid for exterior windows and skylights that Don't enter more than $600 on line 25b.
meet Energy Star certification requirements.
Lines 26a Through 26c
Don't enter more than $600 on line 20b.
Line 26a. To qualify for the credit, a home energy audit must have
Manufacturer’s certification. For purposes of taking the credit, included an inspection of your main home located in the United
you can rely on a manufacturer’s certification in writing that a building States and a written report prepared by a Qualified Home Energy
envelope component is an eligible building envelope component. Auditor or under the supervision of a Qualified Home Energy Auditor.
Don't attach the certification to your return. Keep it for your records. If you check the “No” box, you can't claim the home energy audit
credit.
Section B—Residential Energy Property Line 26b. Enter the amounts you paid for home energy audits in
Expenditures 2024.
Lines 21a Through 21c Don’t enter more than $150 on line 26c.
Line 21a. To qualify for the credit, any qualified energy property Beginning January 1, 2024, home energy audits must be
installed on or in your home must be located in the United States. If ! performed by a Qualified Home Energy Auditor or under the
you check the “No” box, you can't take the energy efficient home CAUTION supervision of a Qualified Home Energy Auditor. The
improvement credit for your residential energy property costs. Qualified Home Energy Auditor must be certified by a Qualified
Certification Program at the time of the home energy audit. See
Line 21b. To qualify for the credit, the qualified energy property Home energy audits, earlier.
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. Lines 29a Through 29e
Line 21c. Enter the full address of each home where you installed Line 29a. Enter the amounts you paid for electric or natural gas
qualified residential energy property. heat pumps that achieve the highest efficiency tier established by
Include on lines 22a, 23a, 24a, 25a, 29a, 29b, and 29c any the CEE that is in effect as of the beginning of the calendar year in
TIP labor costs properly allocable to the onsite preparation, which the property is placed in service.
assembly, or original installation of the property. 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
Line 22a calendar year in which the property is placed in service.
Enter the amounts you paid for central air conditioners that achieve Line 29c. Enter the amounts you paid for biomass stoves and
the highest efficiency tier that has been established by the biomass boilers that have a thermal efficiency rating of at least 75%
Consortium for Energy Efficiency (CEE) that is in effect as of the (measured by the higher heating value of the fuel).
beginning of the calendar year in which the property is placed in
service. Don’t enter more than $2,000 on line 29e.
Manufacturer’s certification. For purposes of taking the credit,
Don't enter more than $600 on line 22b. 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 23a
Enter the amounts you paid for natural gas, propane, or oil water Line 31
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 Complete the worksheet below to figure the amount to enter on
the property is placed in service. 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)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Energy Efficient Home Improvement Credit Limit        Line 32a
Worksheet—Line 31
                                                      Joint occupants of a home who are claiming the energy efficient 
                                                      home improvement credit must check the box on line 32c and attach 
1. Enter the amount from Form 1040,                   a statement explaining how they allocated the credit among each 
   1040-SR, or 1040-NR, line 18             . .   1.  occupant. See Joint occupancy, earlier.
2. 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.                                    2.
3. 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           . . . .   3.

Instructions for Form 5695 (2024)                                                                                        7

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