Instructions For Form 5695 - Residential Energy Credits - 2015

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2015
Department of the Treasury
Internal Revenue Service
Instructions for Form 5695
Residential Energy Credits
Section references are to the Internal Revenue Code unless
own or a tenant-stockholder in a cooperative housing
otherwise noted.
corporation, you are treated as having paid your proportionate
share of any costs of such association or corporation.
General Instructions
If you received a subsidy from a public utility for the
purchase or installation of an energy conservation
!
Future Developments
product and that subsidy was not included in your gross
CAUTION
income, you must reduce your cost for the product by the
For the latest information about developments related to Form
amount of that subsidy before you figure your credit. This rule
5695 and its instructions, such as legislation enacted after they
also applies if a third party (such as a contractor) receives the
were published, go to
subsidy on your behalf.
What's New
Residential Energy Efficient Property
Nonbusiness energy property credit. The nonbusiness
Credit (Part I)
energy property credit has been extended through December
31, 2016.
If you made energy saving improvements to more than one
home that you used as a residence during 2015, enter the total
Purpose of Form
of those costs on the applicable line(s) of one Form 5695. For
Use Form 5695 to figure and take your residential energy
qualified fuel cell property, see
Lines 7a and
7b, later.
credits. The residential energy credits are:
You may be able to take a credit of 30% of your costs of
The residential energy efficient property credit, and
qualified solar electric property, solar water heating property,
The nonbusiness energy property credit.
small wind energy property, geothermal heat pump property,
and fuel cell property. Include any labor costs properly allocable
Also use Form 5695 to take any residential energy efficient
to the onsite preparation, assembly, or original installation of the
property credit carryforward from 2014 or to carry the unused
residential energy efficient property and for piping or wiring to
portion of the credit to 2016.
interconnect such property to the home. The credit amount for
Who Can Take the Credits
costs paid for qualified fuel cell property is limited to $500 for
each one-half kilowatt of capacity of the property.
You may be able to take the credits if you made energy saving
improvements to your home located in the United States in
Qualified solar electric property costs. Qualified solar
2015.
electric property costs are costs for property that uses solar
energy to generate electricity for use in your home located in the
Home. A home is where you lived in 2015 and can include a
United States. No costs relating to a solar panel or other
house, houseboat, mobile home, cooperative apartment,
property installed as a roof (or portion thereof) will fail to qualify
condominium, and a manufactured home that conforms to
solely because the property constitutes a structural component
Federal Manufactured Home Construction and Safety
of the structure on which it is installed. The home does not have
Standards.
to be your main home.
You must reduce the basis of your home by the amount of
Qualified solar water heating property costs. Qualified solar
any credit allowed.
water heating property costs are costs for property to heat water
Main home. Your main home is generally the home where
for use in your home located in the United States if at least half
you live most of the time. A temporary absence due to special
of the energy used by the solar water heating property for such
circumstances, such as illness, education, business, military
purpose is derived from the sun. No costs relating to a solar
service, or vacation, will not change your main home.
panel or other property installed as a roof (or portion thereof) will
Costs. For purposes of both credits, costs are treated as being
fail to qualify solely because the property constitutes a structural
paid when the original installation of the item is completed, or, in
component of the structure on which it is installed. To qualify for
the case of costs connected with the reconstruction of your
the credit, the property must be certified for performance by the
home, when your original use of the reconstructed home begins.
nonprofit Solar Rating Certification Corporation or a comparable
For purposes of the residential energy efficient property credit
entity endorsed by the government of the state in which the
only, costs connected with the construction of a home are
property is installed. The home does not have to be your main
treated as being paid when your original use of the constructed
home.
home begins. If less than 80% of the use of an item is for
Qualified small wind energy property costs. Qualified small
nonbusiness purposes, only that portion of the costs that is
wind energy property costs are costs for property that uses a
allocable to the nonbusiness use can be used to determine
wind turbine to generate electricity for use in connection with
either credit.
your home located in the United States. The home does not
Only the residential energy efficient property credit (Part
have to be your main home.
I) is available for both existing homes and homes being
!
Qualified geothermal heat pump property costs. Qualified
constructed. The nonbusiness energy property credit
CAUTION
geothermal heat pump property costs are costs for qualified
(Part II) is only available for existing homes.
geothermal heat pump property installed on or in connection
Association or cooperative costs. If you are a member of a
with your home located in the United States. Qualified
condominium management association for a condominium you
geothermal heat pump property is any equipment that uses the
Jan 04, 2016
Cat. No. 66412G

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