Form 5695 - Residential Energy Credits

Form 5695, "Residential Energy Credits," is a form that taxpayers use to claim a tax credit for energy-efficient residential buildings. This credit can help offset the costs of improving the energy efficiency of a taxpayer's residential building, thereby reducing the overall amount of income tax the taxpayer must pay.

The tax credit for energy-efficient residential buildings is part of the larger Residential Energy Property Credit (REPC) program. This program, established under the Internal Revenue Code, offers tax incentives to property owners for improvements made to their residential buildings to increase energy efficiency.

Who Can Claim the Credit:

  • Homeowners who have made qualified energy-efficient improvements to their primary residence or second home in the United States.

Qualified Improvements:

  • Qualified solar electric property (e.g., solar panels)
  • Qualified solar water heating property
  • Qualified fuel cell property
  • Qualified small wind energy property
  • Qualified geothermal heat pump property
  • Qualified biomass fuel property
  • Energy-efficient building envelope components (e.g., windows, doors, insulation)
  • Energy-efficient heating and cooling systems (e.g., heat pumps, furnaces, boilers)
  • Energy-efficient water heaters
  • Energy-efficient refrigerators and freezers