U.S. Individual Income Tax Return Forms

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2025

Instructions for Form 5695
Residential Energy Credits
Section references are to the Internal Revenue Code unless
otherwise noted.

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.

Termination of credits. You can’t claim residential clean energy
credits for expenditures made after December 31, 2025. You can’t
claim energy efficient home improvement credits for expenditures or
property placed in service after December 31, 2025. See Who Can
Take the Credits, later, for details.
For additional information and frequently asked questions about
the modification of energy efficient home improvements and
residential clean energy property credits, see Fact Sheet 2025-05 at
https://www.irs.gov/newsroom/faqs-for-modification-ofsections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-publiclaw-119-21-139-stat-72-july-4-2025-commonly-known-as-the-onebig-beautiful-bill-obbb.
Qualified manufacturer identification numbers. Beginning
January 1, 2025, if you are claiming the energy efficient home
improvement credit for specified property placed into service in
2025, you must include the four-character alphanumeric unique
qualified manufacturer identification number (QMID) for each item.
Enabling property. A new line was added to document the
required relationship between enabling property and enabled
property.
Condominium or cooperative owners with fractional shares of
credits. A new checkbox was added to show you live in a
condominium or cooperative and have a fractional share of the
qualified energy efficiency improvements or residential energy
property expenditures.

Reminders
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 2025 is 30%.
Energy efficient home improvement credit. The nonbusiness
energy property credit is now the energy efficient home improvement
credit. The credit is allowed for property placed in service through
December 31, 2025.
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;

Oct 2, 2025

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.
For additional information and frequently asked questions about
energy efficient home improvements and residential clean energy
property credits, see Fact Sheet 2025-01 at https://www.irs.gov/pub/
taxpros/fs-2025-01.pdf.

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 2024 or to carry the unused portion of the
residential clean energy credit to 2026.

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 2025.

Home. A home is where you lived in 2025 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.
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.
Caution: You may only have one main home at a time.
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.
Caution: The residential clean energy credit (Part I) is available for
both existing homes and homes being constructed. The energy

Instructions for Form 5695 (2025) Catalog Number 66412G
Department of the Treasury Internal Revenue Service www.irs.gov

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What’s New

• 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 Energy Efficient Home Improvement Credit (Part
II).
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.

TREASURY/IRS AND OMB USE ONLY DRAFT
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.
Caution: If you received a subsidy from a public utility for the
purchase or installation of an energy conservation product 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
2025-01 at https://www.irs.gov/pub/taxpros/fs-2025-01.pdf, for
details.

Residential Clean Energy Credit
(Part I)

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 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 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%.
Caution: Costs allocable to a swimming pool, hot tub, or any other
energy storage medium that has a function other than the function of
such storage don’t qualify for the residential clean energy credit.
Joint occupancy. If you occupied your home jointly with someone,
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 2025, 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 2025,
2. The amount of the residential energy property costs paid or
incurred in 2025, and
3. The amount paid or incurred for home energy audits during
2025.
However, this credit is limited as follows.

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

property.
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Instructions for Form 5695 (2025)

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If you made energy saving improvements to more than one home
that you used as a residence during 2025, 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.

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.

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• 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.

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.

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, a principal purpose of which is to
provide subsidized financing for projects designed to conserve or
produce energy.

The Qualified Home Energy Auditor must be certified by a
Qualified Certification Program at the time of the home energy audit.
See https://www.energy.gov/eere/buildings/25c-energy-efficienthome-improvement-credit for a listing of Qualified Certification
Programs.

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 2025 located in the United States if the original use of the
component begins with you, the component reasonably 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.
For exterior doors, windows, and skylights installed in 2025, a
valid QMID must be reported on the applicable line(s).
Caution: To qualify for the credit, qualified energy efficiency
improvements must meet certain energy efficiency requirements.
See Line 18a through Line 20d, later, for details.

Section B—Residential Energy Property
Expenditures

Residential energy property expenditures are costs of new qualified
energy property that is installed on or in connection with a home that
you used during 2025 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.
For qualified energy property installed in 2025, a valid QMID
must be reported on the applicable line(s).
Caution: To qualify for the credit, qualified energy property must
meet certain energy efficiency requirements. See Line 22a through
Line 25c and Lines 29a Through 29h, later, for details.
Home energy audits. Home energy audit 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.

Instructions for Form 5695 (2025)

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.
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,
19f, 20a, 20b, 22a, 22b, 23a, 23b, 24a, 24b, 25c, 26b, or 29a through
29f.
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, 19c,
19g, 20d, 22d, 23d, 24d, 25e, 26c, and 29h. 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, 19f, 20a,
20b, 22a, 22b, 23a, 23b, 24a, 24b, 25c, 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 29h 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 29g. The denominator is the total amount paid by you
and all other occupants for the item of property. Enter the result on
line 29h.
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.
3

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Section A—Qualified Energy Efficiency
Improvements

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• $150 for home energy audits.
• $2,000 for heat pumps and heat pump water heaters; biomass
stoves and biomass boilers.

Specific Instructions
Part I
Residential Clean Energy Credit
Before you begin Part I.

Figure the amount of the credits shown in the credit limitation
worksheet if you take those credits on your return.
Tip: Include on lines 1 through 4, 5b, 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.

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.

Line 10
Enter the kilowatt (kW) capacity of the fuel cell property. The
nameplate capacity must be 0.5 kW or greater to claim the credit
and may only be claimed in half kW increments. Multiply the kW
capacity by $1,000 and enter the result.

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

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
2025 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
4

Instructions for Form 5695 (2025)

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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.

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.

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Residential Clean Energy Credit Limit
Worksheet—Line 14
1.

3.

1.

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 2026.
File this form even if you can't use any of your credit in 2025.

Part II
Energy Efficient Home Improvement
Credit

Caution: To qualify for the energy efficient home improvement
credit for specified property, you must provide a valid QMID for each
item.

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
2025. 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 to or renovation of 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 20d.

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 2025.

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 (2025)

Line 16

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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 2025 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
2025 income tax return. Not all
credits/adjustments are available for
all years nor for all filers. See the
instructions for your 2025 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 . . . . . . . . . . . . .

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.

Caution: Don't include on lines 18a, 19a, 19d, 19e, 20a, and 20b
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 your home
and meets the criteria established by the IECC.
Don't enter more than $1,200 on line 18b.
Caution: A component isn't specifically and primarily designed to
reduce the heat loss or gain of your home if it provides 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

TREASURY/IRS AND OMB USE ONLY DRAFT
Lines 19a Through 19h

Lines 23a Through 23d

Line 19a. Enter the amount you paid for the most expensive exterior
door that meets the Energy Star program requirements.

Line 23a. Enter the QMID and amounts you paid for the two most
expensive 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.

Line 19b. Enter the QMID for the exterior door you reported on
line 19a.
Don't enter more than $250 on line 19c.
Line 19d. Enter the QMID(s) and amount(s) you paid for the two
next most expensive qualifying exterior doors in 2025.
Line 19e. Enter the amounts paid for all other qualifying exterior
doors in 2025. If you enter an amount on line 19e, attach a statement
to your return listing the QMID and cost of each item included on
line 19e.
Don't enter more than $500 on line 19h.

Lines 20a Through 20d

Line 20b. Enter the amount you paid for all other exterior windows
and skylights that meet Energy Star most efficient certification
requirements. If you enter an amount on line 20b, attach a statement
to your return listing the QMID and cost of each item included on
line 20b.
Don't enter more than $600 on line 20d.
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.
A valid QMID must also be reported on the applicable line(s).

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 energy property.
Tip: Include on lines 22a, 22b, 23a, 23b, 24a, 24b, 25c, and 29a
through 29f any labor costs properly allocable to the onsite
preparation, assembly, or original installation of the property.

Lines 22a Through 22d
Line 22a. Enter the QMID and amount you paid for the most
expensive central air conditioner that achieves 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.
Line 22b. Enter the amounts you paid for all other central air
conditioners that achieve the highest efficiency tier that has been
established by the CEE that is in effect as of the beginning of the
calendar year in which the property is placed in service. If you enter
an amount on line 22b, attach a statement to your return listing the
QMID and cost of each item included on line 22b.
Don't enter more than $600 on line 22d.
6

Lines 24a Through 24d
Line 24a. Enter the QMID and amount you paid for the most
expensive 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 must meet the 2021 Energy Star efficiency criteria and be
rated by the manufacturer for use with fuel blends at least 20% of the
volume of which consists of an eligible fuel.
Line 24b. Enter the amounts you paid for all other 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 must meet the
2021 Energy Star efficiency criteria and be rated by the
manufacturer for use with fuel blends at least 20% of the volume of
which consists of an eligible fuel. If you enter an amount on line 24b,
attach a statement to your return listing the QMID and cost of each
item included on line 24b.
Don't enter more than $600 on line 24d.

Lines 25a Through 25e
To qualify for the credit, an improvement to or replacement of
panelboards, subpanelboards, branch circuits, or feeders (enabling
property) must be installed to enable the installation and use of a
separate qualified energy efficient improvement or certain qualified
energy property (enabled property) and both the enabling property
and the enabled property must be installed in 2025. If you check the
“No” box, you can't take the credit for enabling property costs.
Note: If the enabling property and the enabled property were
installed in consecutive tax years, then you can treat both as having
been installed in the later of the tax year in which the enabling
property or the enabled property was installed, regardless of which
was installed first. For example, if the enabling property was installed
in 2024 and the enabled property was installed in 2025, then you
may choose to treat both as being installed in 2025.
Example. In 2024, you installed a new panelboard in your
principal residence, and in 2025, you install a new electric heat
pump water heater in your principal residence. If you choose to apply
the safe harbor provisions, you may treat both the enabling property
(panelboard) and the enabled property (electric heat pump water
heater) to have been installed in 2025, for purposes of the credit. If
you choose not to apply the safe harbor under paragraph (b)(2) of
this section, then the panelboard is determined to have been
installed in 2024, and the electric heat pump water heater is
determined to have been installed in 2025, for purposes of the
credit.
Line 25b. Enter the code for the type(s) of enabled property from
the following list.
• A - Windows and skylights reported on Form 5695, line 20a,
• B - Central air conditioners reported on Form 5695, line 22a,

Instructions for Form 5695 (2025)

DRAFT

DRAFT

Line 20a. Enter the QMID and amounts you paid for the four most
expensive exterior windows and skylights that meet Energy Star
certification requirements on lines (i) through (iv).

Line 23b. Enter the amounts you paid for all other 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. If you enter
an amount on line 23b, attach a statement to your return listing the
QMID and cost of each item included on line 23b.
Don't enter more than $600 on line 23d.

TREASURY/IRS AND OMB USE ONLY DRAFT

• C - Natural gas, propane, and oil water heaters reported on Form
5695, line 23a,
• D - Natural gas, propane, and oil furnaces or hot water boilers
reported on Form 5695, line 24a,
• E - Electric or natural gas heat pumps reported on Form 5695,
line 29a,
• F - Electric or natural gas heat pump water heaters reported on
Form 5695, line 29c, or
• G - Biomass stoves or boilers reported on Form 5695, line 29e.
Line 25c. Enter the amounts you paid for improvements to 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.
Don't enter more than $600 on line 25e.

Lines 26a Through 26c

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. A valid QMID must also be reported
on the applicable line(s).

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

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

Line 26b. Enter the amounts you paid for home energy audits in
2025.
Don’t enter more than $150 on line 26c.
Caution: 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 Home energy audits, earlier.

Lines 29a Through 29h
Line 29a. Enter the QMID and amount you paid for the most
expensive electric or natural gas heat pump that achieves 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 all other 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. If you enter an amount on
line 29b, attach a statement to your return listing the QMID and cost
of each item included on line 29b.
Line 29c. Enter the QMID and amount you paid for the most
expensive electric or natural gas heat pump water heater that
achieves 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 29d. Enter the amounts you paid for all other 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. If you enter
an amount on line 29d, attach a statement to your return listing the
QMID and cost of each item included on line 29d.
Line 29e. Enter the QMID and amount you paid for the most
expensive biomass stove or biomass boiler that has a thermal
efficiency rating of at least 75% (measured by the higher heating
value of the fuel).
Line 29f. Enter the amounts you paid for all other biomass stoves
and biomass boilers that have a thermal efficiency rating of at least
75% (measured by the higher heating value of the fuel). If you enter
an amount on line 29f, attach a statement to your return listing the
QMID and cost of each item included on line 29f.

Instructions for Form 5695 (2025)

3.

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 2025 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
2025 income tax return. Not all
credits/adjustments are available for
all years nor for all filers. See the
instructions for your 2025 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.

DRAFT

DRAFT

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.

Don’t enter more than $2,000 on line 29h.

2.

3.

Lines 32a and 32b
Line 32a. Joint occupants of a home who are claiming the energy
efficient home improvement credit must check the box on line 32a
and attach a statement explaining how they allocated the credit
among each occupant. See Joint occupancy, earlier.
Line 32b. Occupants of a condominium or cooperative who are
claiming a fractional share of the qualified energy efficiency
improvements or residential energy property costs must check the
box on line 32b.

7