How to claim the residential energy credit

If you made qualifying energy-efficient home improvements or installed renewable energy equipment before the credit expiration dates, you may be able to claim a residential energy credit or carry forward an unused credit from a prior year.

Important: For tax year 2026, the residential clean energy credit and the energy efficient home improvement credit generally aren't available for new expenditures made after December 31, 2025. 

Form 5695 is used to calculate residential energy credits and any eligible credit carryforward. 

Select the section that matches your situation.

1. Qualified Energy Efficiency Improvements

This section was used for qualifying improvements such as:

• Insulation
• Exterior windows
• Exterior doors
• Air-sealing materials

If you're entering information from a prior-year eligible improvement, confirm that:

• The improvement was installed in your main home.
• You were the original user of the property.
• The item was expected to last at least five years.

You'll then enter:

• Your home address
• The cost of insulation or air-sealing materials
• Each qualifying improvement by selecting Add Property

For each item, enter:

• Property type
• Description
• Manufacturer identification number (if required)
• Cost

2. Residential Energy Property Expenditures

This section was used for qualifying property such as:

• Heat pumps
• Central air conditioners
• Water heaters
• Furnaces
• Home energy audits

Enter the cost for each qualifying expenditure or the amount paid for a home energy audit when applicable.

3. Residential Clean Energy Credit

This section was used for renewable energy systems, including:

• Solar electric panels
• Solar water heaters
• Geothermal heat pumps
• Small wind turbines
• Battery storage technology

If you're reporting a qualifying prior-year expenditure, enter:

• The installation address
• The type of system installed
• The total cost

4. Credit Carryforward

If you weren't able to use your entire residential energy credit in a prior year, you may be able to carry the unused amount forward.

Enter the carryforward amount from:

• Your prior-year Form 5695, Line 16 (or the applicable carryforward amount shown on your previous return)

The program will apply the carryforward and calculate any credit that may still be available.