General Instructions Future Developments What’s New Home energy audits. Reminders Residential clean energy credit. Energy efficient home improvement credit. Purpose of Form Who Can Take the Credits Home. Main home. Costs. Association or cooperative costs. Residential Clean Energy Credit (Part I) Qualified solar electric property costs. Qualified solar water heating property costs. Qualified small wind energy property costs. Qualified geothermal heat pump property costs. Qualified battery storage technology costs. Qualified fuel cell property costs. Joint occupancy. Energy Efficient Home Improvement Credit (Part II) Subsidized energy financing. Section A—Qualified Energy Efficiency Improvements Qualified energy efficiency improvements. Section B—Residential Energy Property Expenditures Home energy audits. Joint ownership of qualified property. Married taxpayers with more than one home. Joint occupancy. Specific Instructions Part I Residential Clean Energy Credit Before you begin Part I. Line 1 Line 2 Line 3 Line 4 Lines 5a and 5b Lines 7a Through 7c Line 8 Line 14 Manufacturer’s certification. Line 16 Part II Energy Efficient Home Improvement Credit Section A—Qualified Energy Efficiency Improvements Lines 17a Through 17e Line 17a. Line 17b. Line 17c. Line 17d. Line 17e. Lines 18a and 18b Line 18a. Lines 19a Through 19e Line 19a. Line 19c. Line 20a Manufacturer’s certification. Section B—Residential Energy Property Expenditures Lines 21a Through 21c Line 21a. Line 21b. Line 21c. Line 22a Line 23a Line 24a Line 25a Lines 26a Through 26c Line 26a. Line 26b. Lines 29a Through 29e Line 29a. Line 29b. Line 29c. Manufacturer’s certification. Line 31 Line 32a Instructions for Form 5695 (2024) Residential Energy Credits Section references are to the Internal Revenue Code unless otherwise noted. 2024 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. 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 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. 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. 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 or to carry the unused portion of the residential clean energy credit to 2025. 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 2024. 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. 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 energy efficient home improvement credit (Part II) is only available for existing homes. 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. 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 2024-15 at https://www.irs.gov/pub/taxpros/fs-2024-15.pdf, for details. 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 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%. 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: The amount you paid, or 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: The amount paid or incurred for qualified energy efficiency improvements installed during 2024, The amount of the residential energy property costs paid or incurred in 2024, and 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. 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. Section A—Qualified Energy Efficiency Improvements 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. To qualify for the credit, qualified energy efficiency improvements must meet certain energy efficiency requirements. See Line 18a through Line 20a, later, for details. 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. 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 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: 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 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: The Qualified Home Energy Auditor’s name and employer identification number (EIN) or other type of relevant taxpayer identifying number (TIN); An attestation that the Qualified Home Energy Auditor is certified by a Qualified Certification Program; and The name of the Qualified Certification Program. 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-efficient-home-improvement-credit for a listing of Qualified Certification Programs. 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. Complete lines 17a through 30 of a separate Form 5695 for each main home. 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. On the dotted line to the left of line 30, enter “More than one main home.” Then, complete the rest of this form. 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. 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. 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. 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 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. Line 14 Complete the following worksheet to figure the amount to enter on line 14. Residential Clean Energy Credit Limit Worksheet—Line 14 1. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 18 1. _____ 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 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. 2. 3. 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 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. 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. 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. 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 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. 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. 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 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 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 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. 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 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. Energy Efficient Home Improvement Credit Limit Worksheet—Line 31 1. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 18 1. _____ 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. Line 32a Joint occupants of a home who are claiming the energy efficient home improvement credit must check the box on line 32c and attach a statement explaining how they allocated the credit among each occupant. See Joint occupancy , earlier.
