If you made energy‑saving upgrades to your home, you may qualify for valuable tax credits using Form 5695 – Residential Energy Credits. This credit helps lower your taxes when you install qualifying improvements like insulation, new windows, heat pumps, solar panels, and more.
Here’s how to enter the credit in the program.
✔ Go to the Residential Energy Credits Section
From the Credits menu, choose:
➡ Residential Energy Credits – Add/Edit
You’ll see four options:
- Qualified Energy Efficiency Improvements
- Residential Energy Property Expenditures
- Residential Clean Energy Credit
- Credit Carryforward
Select the section that applies to the improvements you made.
🧊 1. Qualified Energy Efficiency Improvements
Includes items like:
- Insulation
- Exterior doors and windows
- Air sealing materials
You must confirm:
✔ The improvements were installed in your main home
✔ You are the original user
✔ Items are expected to last at least 5 years
Then enter:
- Your home address
- Cost of insulation or air‑sealing materials
- Each improvement item (e.g., windows, doors) using Add Property
You'll enter:
- Type of property
- Description
- Manufacturer ID (found on the product certification)
- Cost
Did you purchase any Energy Efficient items during the tax year?
🔌 2. Residential Energy Property Expenditures
This section is for items like:
- Heat pumps
- Central air units
- Water heaters
- Furnaces
- Home energy audits
Check the boxes that apply and enter the cost of improvements or the cost of your home energy audit.
Do I Qualify for the Residential Clean Energy Credit (Form 5695)?
☀️ 3. Residential Clean Energy Credit
Covers renewable energy systems such as:
- Solar panels
- Solar water heaters
- Geothermal heat pumps
- Small wind turbines
- Battery storage (3 kWh+)
Enter:
- The installation address
- The type of system
- The total cost
The program will automatically calculate the credit (usually 30% of the cost).
🔁 4. Credit Carryforward
If you couldn’t use all your credit last year, enter the amount from:
📄 Last year’s Form 5695, Line 16
🎉 You’re Done!
The program will calculate your Residential Energy Credit and apply it to your tax return. Keep all receipts and manufacturer certifications for your records.