Form 5695: Residential Energy Credits, 2025 Lines and End Dates
Form 5695 is the IRS form for the residential clean energy credit and the energy efficient home improvement credit. The Instructions for Form 5695 (2025) say: “You can’t claim residential clean energy credits for expenditures made after December 31, 2025. You can’t claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025.” The statute, Public Law 119-21 and the IRS’s own pages word the end dates in slightly different ways, and each wording is quoted below with its date. This page describes no claim for expenditures or property after December 31, 2025.
Maintained by Archie Chang · Sources checked against IRS text on November 2, 2026 · Methodology & sources
What Form 5695 does
The IRS About Form 5695 page describes the form like this:
“Use Form 5695 to figure and take your residential energy credits. The residential energy credits are:
The residential clean energy credit, and
The energy efficient home improvement credit.”
The Instructions for Form 5695 (2025) say who the credits are for and which homes each credit covers:
“You may be able to take the credits if you made energy saving improvements to your home located in the United States in 2025.”
“Caution: The residential clean energy credit (Part I) is available for both existing homes and homes being constructed. The energy efficient home improvement credit (Part II) is only available for existing homes.”
End dates in the Instructions, the statute, Public Law 119-21 and the IRS pages
The Instructions for Form 5695 (2025), a printed tax-year 2025 document, open their What’s New section with the termination of the credits:
“Termination of credits. You can’t claim residential clean energy credits for expenditures made after December 31, 2025. You can’t claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025. See Who Can Take the Credits, later, for details.”
The Reminders section of the same instructions words the energy efficient home improvement credit date this way:
“The credit is allowed for property placed in service through December 31, 2025.”
The Internal Revenue Code, as posted at uscode.house.gov (text read November 2, 2026), words the two end dates differently from each other: section 25D by the date of the expenditure, and section 25C by the date the property was placed in service.
“The credit allowed under this section shall not apply with respect to any expenditures made after December 31, 2025.”
“This section shall not apply with respect to any property placed in service after December 31, 2025.”
Public Law 119-21 (July 4, 2025) made both changes. Its section 70505 refers to section 25C(h), while the Code as posted at uscode.house.gov prints the termination sentence of section 25C as subsection (i).
“Section 25C(h) is amended by striking “placed in service” and all that follows through “December 31, 2032” and inserting “placed in service after December 31, 2025”.”
“Section 25D(h) is amended by striking “to property placed in service after December 31, 2034” and inserting “with respect to any expenditures made after December 31, 2025”.”
The IRS’s own credit pages use their own wording. The IRS Residential Clean Energy Credit page words the end by property placed in service, while section 25D(h) words it by expenditures made:
“The credit is not available for any property placed in service after December 31, 2025.”
“The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through December 31, 2025.”
The IRS Energy Efficient Home Improvement Credit page has two sentences on the end date, with different wording:
“You can claim the credit for improvements made through December 31, 2025.”
“The credit is allowed for qualifying property placed in service on or after Jan. 1, 2023, and before December 31, 2025.”
When we checked on November 2, 2026, the Instructions for Form 5695 (2025) and the IRS Energy Efficient Home Improvement Credit page did not describe a claim for expenditures made, or property placed in service, after December 31, 2025. This page does not describe one either, and it does not decide how a particular expenditure or installation date is counted; the documents quoted above are the authority.
Part I lines: residential clean energy credit
The Instructions for Form 5695 (2025) describe the credit rate and the fuel cell limit:
“You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, small wind energy property, geothermal heat pump property, battery storage technology, and fuel cell property.”
“The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property.”
| Line | Printed text |
|---|---|
| 1 | Qualified solar electric property costs |
| 2 | Qualified solar water heating property costs |
| 3 | Qualified small wind energy property costs |
| 4 | Qualified geothermal heat pump property costs |
| 5b | If you checked the “Yes” box, enter the qualified battery technology costs |
| 6a | Add lines 1 through 5b |
| 6b | Multiply line 6a by 30% (0.30) |
| 8 | Qualified fuel cell property costs |
| 9 | Multiply line 8 by 30% (0.30) |
| 10 | Kilowatt capacity of property on line 8 above. If less than 0.5 kW, enter -0-. (See instructions.) x $1,000 |
| 11 | Enter the smaller of line 9 or line 10 |
| 12 | Credit carryforward from 2024. Enter the amount, if any, from your 2024 Form 5695, line 16 |
| 13 | Add lines 6b, 11, and 12 |
| 14 | Limitation based on tax liability. Enter the amount from the Residential Clean Energy Credit Limit Worksheet. (See instructions.) |
| 15 | Residential clean energy credit. Enter the smaller of line 13 or line 14. Also include this amount on Schedule 3 (Form 1040), line 5a |
| 16 | Credit carryforward to 2026. If line 15 is less than line 13, subtract line 15 from line 13 |
The table lists some Part I lines only. Form 5695 (2025) also has line 5a, lines 7a to 7c and the address entries, which this page does not reproduce.
Part II lines: energy efficient home improvement credit
The Instructions for Form 5695 (2025) describe the 30% credit and the annual limits:
“For the energy efficient home improvement credit, the lifetime limitation has been replaced by an annual credit limit. A 30% credit, up to a maximum of $1,200, may be allowed for:
Insulation material or air sealing material or systems;
Exterior doors;
Windows and skylights;
Central air conditioners;
Natural gas, propane or oil water heaters;
Natural gas, propane or oil furnaces or hot water boilers;
Improvements to or replacement of panelboards, subpanelboards, branch circuits, or feeders; and
Home energy audits.”
“However, this credit is limited as follows.
A total combined credit limit of $1,200 for qualified energy property.
A credit limit of $600 for any qualified energy property item.
A combined credit limit of $600 for all exterior windows and skylights.
A credit limit of $250 for any qualifying exterior door and $500 total for all qualifying exterior doors.
A combined credit limit of $2,000 for heat pump and heat pump water heaters; biomass stoves and boilers.
A credit limit of $150 for home energy audits.”
“Beginning January 1, 2025, if you are claiming the energy efficient home improvement credit for specified property placed into service in 2025, you must include the four-character alphanumeric unique qualified manufacturer identification number (QMID) for each item.”
| Line | Printed text |
|---|---|
| 18b | Multiply line 18a by 30% (0.30). Enter the results. Do not enter more than $1,200 |
| 19c | Multiply line 19a by 30% (0.30). Do not enter more than $250 |
| 19h | Add lines 19c and 19g. Do not enter more than $500 |
| 20d | Multiply line 20c by 30% (0.30). Enter the results. Do not enter more than $600 |
| 22d | Multiply line 22c by 30% (0.30). Enter the results. Do not enter more than $600 |
| 23d | Multiply line 23c by 30% (0.30). Enter the results. Do not enter more than $600 |
| 24d | Multiply line 24c by 30% (0.30). Enter the results. Do not enter more than $600 |
| 25e | Multiply line 25c by 30% (0.30). Enter the results. Do not enter more than $600 |
| 26c | Multiply line 26b by 30% (0.30). Enter the results. Do not enter more than $150 |
| 27 | Add lines 18b, 19h, 20d, 22d, 23d, 24d, 25e, and 26c |
| 28 | Enter the smaller of line 27 or $1,200 |
| 29h | Multiply line 29g by 30% (0.30). Enter the results. Do not enter more than $2,000 |
| 30 | Add lines 28 and 29h |
| 31 | Limitation based on tax liability. Enter the amount from the Energy Efficient Home Improvement Credit Limit Worksheet. (See instructions.) |
| 32 | Energy efficient home improvement credit. Enter the smaller of line 30 or line 31. Also include this amount on Schedule 3 (Form 1040), line 5b |
The table lists some Part II lines only. Lines 17a to 17e, 19b, 21a to 21c, and the other lines (18a, 19a, 19d to 19g, 20a to 20c, 22a to 22c, 23a to 23c, 24a to 24c, 25a to 25d, 26a, 26b and 29a to 29g) and lines 32a and 32b are on the form and are not reproduced here. The form prints this note under lines 21a and 21b:
“If you checked the “No” box for line 21a or 21b, you cannot claim the credit for your residential energy property costs. Skip lines 22 through 25 and line 29. Go to line 26.”
Carryforward of an unused credit and the IRS notes
The Instructions for Form 5695 (2025) and section 25D(c) speak of carrying an unused residential clean energy credit forward. They are quoted exactly, next to the termination wording above, and this page does not combine the two:
“Also use Form 5695 to take any residential clean energy credit carryforward from 2024 or to carry the unused portion of the residential clean energy credit to 2026.”
“If you can’t use all of the credit because of the tax liability limit (that is, line 14 is less than line 13), you can carry the unused portion of the credit to 2026.”
“If the credit allowable under subsection (a) exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this section), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such succeeding taxable year.”
“File this form even if you can’t use any of your credit in 2025.”
The instructions point to an IRS fact sheet, and the IRS About Form 5695 page lists a correction notice:
“For additional information and frequently asked questions about the modification of energy efficient home improvements and residential clean energy property credits, see Fact Sheet 2025-05 at IRS.gov/EnergyCreditFAQs.”
“Correction to the 2025 Instructions for Form 5695 joint occupancy calculation -- 23-JAN-2026”
Frequently asked questions
What is Form 5695?
The IRS About Form 5695 page says: “Use Form 5695 to figure and take your residential energy credits.” It names two credits, the residential clean energy credit and the energy efficient home improvement credit. The Instructions for Form 5695 (2025) are for tax year 2025.
What do the IRS and the statute say about expenditures after December 31, 2025?
The Instructions for Form 5695 (2025) say: “You can’t claim residential clean energy credits for expenditures made after December 31, 2025. You can’t claim energy efficient home improvement credits for expenditures or property placed in service after December 31, 2025.” Section 25D(h) of the Internal Revenue Code, as posted at uscode.house.gov, says the residential clean energy credit “shall not apply with respect to any expenditures made after December 31, 2025,” and section 25C says that section “shall not apply with respect to any property placed in service after December 31, 2025.” When we checked on November 2, 2026, the Instructions for Form 5695 (2025) and the IRS Energy Efficient Home Improvement Credit page did not describe a claim for expenditures or property after December 31, 2025.
Which end-date wording do the two IRS credit pages use?
The IRS Residential Clean Energy Credit page (last reviewed July 4, 2026) says: “The credit is not available for any property placed in service after December 31, 2025.” The IRS Energy Efficient Home Improvement Credit page (last reviewed April 28, 2026) says: “You can claim the credit for improvements made through December 31, 2025,” and also “The credit is allowed for qualifying property placed in service on or after Jan. 1, 2023, and before December 31, 2025.” Section 25D(h) of the Internal Revenue Code words the residential clean energy credit end date by “expenditures made,” so the IRS page and the statute word it differently; each is quoted as printed.
What does Part I of Form 5695 cover?
Part I of Form 5695 (2025), lines 1 to 16, covers the residential clean energy credit. Lines 1 to 5b list solar electric, solar water heating, small wind energy, geothermal heat pump and battery storage costs, line 6b multiplies the total by 30% (0.30), lines 8 to 11 cover fuel cell property with a kilowatt capacity multiplied by $1,000 on line 10, line 12 is the “Credit carryforward from 2024,” and line 16 is the “Credit carryforward to 2026.” The Instructions for Form 5695 (2025) say the credit is 30% of the costs of those property types and limit fuel cell property to $500 for each one-half kilowatt of capacity.
What are the dollar limits printed in Part II of Form 5695?
Form 5695 (2025), Part II, prints these limits on these lines: $1,200 on line 18b (insulation or air sealing), $250 on line 19c and $500 on line 19h (exterior doors), $600 on line 20d (windows and skylights), $600 on each of lines 22d, 23d, 24d and 25e, $150 on line 26c (home energy audits), $1,200 on line 28, and $2,000 on line 29h (heat pumps, heat pump water heaters, and biomass stoves and boilers). These are the amounts printed on the 2025 form.
What do the Instructions for Form 5695 (2025) say about carrying an unused credit forward?
The Instructions for Form 5695 (2025) say to use Form 5695 “to carry the unused portion of the residential clean energy credit to 2026,” and for line 16: “If you can’t use all of the credit because of the tax liability limit (that is, line 14 is less than line 13), you can carry the unused portion of the credit to 2026.” Section 25D(c) says the excess “shall be carried to the succeeding taxable year.” These are quoted as the documents print them.
Do both credits apply to a home under construction?
The Instructions for Form 5695 (2025) say: “The residential clean energy credit (Part I) is available for both existing homes and homes being constructed. The energy efficient home improvement credit (Part II) is only available for existing homes.”
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Sources (checked November 2, 2026): IRS: About Form 5695 · IRS: Form 5695 (2025), PDF · IRS: Instructions for Form 5695 (2025), PDF · U.S. Code: 26 U.S.C. 25D, Residential clean energy credit · U.S. Code: 26 U.S.C. 25C, Energy efficient home improvement credit · Public Law 119-21 (July 4, 2025), sections 70505 and 70506, govinfo.gov · IRS: Residential Clean Energy Credit · IRS: Energy Efficient Home Improvement Credit