Form 5695 - Residential Energy Credits

Per IRS Instructions for Form 5695, page 1:

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 energy efficient property credit carryforward from 2025 or to carry the unused portion of the residential clean energy credit for 2024.

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 2023.

Page 2:

Energy Efficient Home Improvement Credit (Part II)

You may be able to take a credit equal to the sum of

  1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2022, and
  2. Any residential energy property costs paid or incurred in 2023.

However, this credit is limited as follows.

  • A total combined credit limit of $500 for all tax years after 2005.
  • A combined credit limit of $200 for windows for all tax years after 2005.
  • A credit limit for residential energy property costs for 2022 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.

To enter Form 5695 information in TaxAct:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Other Credits dropdown, then click Residential energy credit.
  3. Continue with the interview process to enter your information.

Related Links

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.