Fillable Form 5695 - Residential Energy Credits

Form 5695 (2012)

Page

1. The amount you paid, or

• Certain electric heat pump water heaters; electric heat pumps;

central air conditioners; natural gas, propane, or oil water heaters;

2. The maximum qualifying cost of the property multiplied by a

and stoves that use biomass fuel.

fraction. The numerator is the amount you paid and the

• Qualified natural gas, propane, or oil furnaces and qualified natural

denominator is the total amount paid by you and all other

gas, propane, or oil hot water boilers.

occupants.

• Certain advanced main air circulating fans used in natural gas,

These rules do not apply to married individuals filing a joint return.

propane, or oil furnaces.

Example. Taxpayer A owns a house with Taxpayer B where they

To qualify for the credit, qualified residential energy

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both reside. In 2012, they installed qualified fuel cell property at a

property must meet certain energy efficiency

cost of $20,000 with a kilowatt capacity of 5. Taxpayer A paid

requirements. See Lines 24a Through 24c, later, for

$12,000 towards the cost of the property and Taxpayer B paid the

details.

CAUTION

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 Taxpayer

Joint ownership of qualified property. If you and a neighbor

A is $10,002 ($16,670 x $12,000/$20,000). The amount of cost

shared the cost of qualifying property to benefit each of your main

allocable to Taxpayer B is $6,668 ($16,670 x $8,000/$20,000).

homes, both of you can take the nonbusiness energy property

credit. You figure your credit on the part of the cost you paid. The

Nonbusiness Energy Property Credit (Part II)

limit on the amount of the credit applies to each of you separately.

You may be able to take a credit equal to the sum of:

Married taxpayers with more than one home. If both you and

1. 10% of the amount paid or incurred for qualified energy

your spouse owned and lived apart in separate main homes, the

efficiency improvements installed during 2012, and

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

2. Any residential energy property costs paid or incurred in 2012.

separate Form 5695. If you are filing a joint return, figure your

However, this credit is limited as follows.

nonbusiness energy property credit as follows.

• A total combined credit limit of $500 for all tax years after 2005.

1. Complete lines 19a through 19c and 21 through 26 of a

separate Form 5695 for each main home.

• A combined credit limit of $200 for windows for all tax years after

2005.

2. Figure the amount to be entered on line 26 of both forms (but

not more than $500 for each form) and enter the combined amount

• A credit limit for residential energy property costs for 2012 of $50

on line 26 of one of the forms.

for any advanced main air circulating fan; $150 for any qualified

natural gas, propane, or oil furnace or hot water boiler; and $300 for

3. On line 27 of the form with the combined amount on line 26,

any item of energy efficient building property.

cross out the preprinted $500 and enter $1,000.

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If the total of any nonbusiness energy property credits

4. On the dotted line to the left of line 27, enter “More than one

you have taken in previous years (after 2005) is more

main home.” Then, complete the rest of this form, including lines

than $500, you generally cannot take the credit in 2012.

20a through 20f. The amount on line 20f can exceed $500.

CAUTION

5. Attach both forms to your return.

Subsidized energy financing. Any amounts provided for by

Joint occupancy. If you owned your home jointly with someone

subsidized energy financing cannot be used to figure the

other than your spouse, each owner must complete his or her own

nonbusiness energy property credit. This is financing provided

Form 5695. To figure the credit, there are no maximum qualifying

under a federal, state, or local program, the principal purpose of

costs for insulation, exterior doors, and a metal or asphalt roof.

which is to provide subsidized financing for projects designed to

Enter the amounts you paid for these items on the appropriate lines

conserve or produce energy.

of Form 5695, Part II. For windows and residential energy property

Qualified energy efficiency improvements. Qualified energy

costs, the amount allocable to you is the smaller of:

efficiency improvements are the following building envelope

1. The amount you paid, or

components installed on or in your main home that you owned

during 2012 located in the United States if the original use of the

2. The maximum qualifying cost* of the property multiplied by a

component begins with you, the component can be expected to

fraction. The numerator is the amount you paid and the

remain in use at least 5 years, and the component meets certain

denominator is the total amount paid by you and all other owners.

energy standards.

*$2,000 for windows; $300 for energy-efficient building property;

• Any insulation material or system that is specifically and primarily

$150 for qualified natural gas, propane, or oil furnace or hot water

designed to reduce heat loss or gain of a home when installed in or

boiler; or $50 for an advanced main air circulating fan.

on such a home.

Specific Instructions

• Exterior windows and skylights.

• Exterior doors.

Part I

• Any metal roof with appropriate pigmented coatings or asphalt

Residential Energy Efficient Property Credit

roof with appropriate cooling granules that are specifically and

primarily designed to reduce the heat gain of your home.

Before you begin Part I:

For purposes of figuring the credit, do not include amounts paid

Figure the amount of any of the following credits you are claiming.

for the onsite preparation, assembly, or original installation of the

• Credit for the elderly or the disabled.

building envelope component.

• Nonbusiness energy property credit (Part II of this form).

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To qualify for the credit, qualified energy efficiency

• Adoption credit.

improvements must meet certain energy efficiency

requirements. See Lines 21a Through 21h, later, for

• Mortgage interest credit.

CAUTION

details.

• District of Columbia first-time homebuyer credit.

Residential energy property costs. Residential energy property

• Alternative motor vehicle credit.

costs are costs of new qualified energy property that is installed on

or in connection with your main home that you owned during 2012

• Qualified plug-in electric vehicle credit.

located in the United States. Include any labor costs properly

• Qualified plug-in electric drive motor vehicle credit.

allocable to the onsite preparation, assembly, or original installation

of the energy property. Qualified residential energy property is any

of the following.

Form 5695 - Residential Energy Credits - 2012 Page 4

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