Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Miscellaneous Credits

Residential Energy Credits

Nonbusiness Energy Property Credit

The nonbusiness energy property credit is available for certain qualifying energy efficiency improvements or residential energy property costs. The qualifying items are:

  • Biomass stoves
  • Heating, ventilating, air-conditioning (HVAC)
  • Insulation
  • Roofs (metal and asphalt)
  • Water heaters (non-solar)
  • Windows and doors

The nonbusiness energy property credit is subject to the following limitations:

  • A total combined credit limit of $500 for all tax years after 2005.
  • A combined credit limit of $200 for windows, for the total amount of all tax years after 2005.
  • A maximum credit for residential energy property costs of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace, or hot water boiler; and $300 for any item of energy-efficient building property.
Solar Panel.
Form 5695, Residential Energy Efficient Property Credit
Form 5695, Residential Energy Efficient Property Credit Instructions

Form 5695, Residential Energy Efficient Property Credit

Form 5695, Residential Energy Efficient Property Credit Instructions