INSTRUCTIONS : RESIDENTIAL ENERGY CREDIT (Form 5695)
Form 5695 is a United States Internal Revenue Service tax form used to apply for federal tax credits for residential energy savings measures. The form should be used by a homeowner who has invested in green technology to improve energy efficiency, such as energy efficient windows, wind power, or solar energy panels.
The Form 5695 can be obtained through the I.R.S’ website or by obtaining the documents through a local tax office.
The form is to be submitted with the personal income tax 1040 return of the homeowner claiming the tax credits.
1. Start by entering the required information in part I. Enter your home’s address on line 1b.
2. Enter the lifetime limitation amounts on line 2. You must specify the tax credits claimed each year for the past 4 years. If you have taken over $500 in tax credits over the past 4 years, you cannot apply for a new energy tax credit.
3. Go through lines 3a to 3h, and find the energy efficient methods you have used to improve your home. Enter the amount the materials cost, not including labor prices or installation.
4. Add lines 3a, 3b, 3c, and 3h, entering the total on line 4. Multiply this amount by .10 in line 5.
5. Go through lines 6a through 6c, identifying the energy property costs.
6. Perform the required additions and subtractions in lines 7 through 13, which will lead to your total energy tax credit, which you should enter on line 14.
7. Go to part II if you have additional residential energy efficient property costs, which include solar and wind energy generation.
8. Enter the total costs of these types of energy generation installed at your house on lines 15 through 18. Add these amounts and multiply by .30.
9. If you have a qualified fuel cell property, enter the address of the location on line 21b.
10. Enter any fuel cell costs on lines 22 through 24.
11. Once your Form 5695 has all energy efficient costs calculated, enter the total amounts on the proper lines, indicating your qualified tax credits for the year.
Submit the Form 5695 with your 1040 tax returns. Retain a copy for your records.
