IRS Form 5695 is a United States Internal Revenue Service form used by taxpayers to claim residential energy credits. It is primarily utilized to calculate and declare the credits for energy-efficient home improvements and renewable energy installations. These improvements may include solar panels, solar water heating systems, small wind energy systems, and geothermal heat pumps, which are intended to promote environmentally friendly practices by offering financial incentives in the form of tax credits.
The form is divided into two parts: the Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit; under the 2025 tax law, neither credit is available for expenditures made or property placed in service after December 31, 2025. The first part relates to the costs associated with the installation of renewable energy systems in a home, including labor and any additional necessary equipment. The second part covers energy-saving improvements such as insulation, energy-efficient exterior windows, skylights and doors, heat pumps, and home energy audits. Taxpayers who make these eligible improvements can potentially reduce their federal tax liability, supporting energy conservation and efficiency upgrades in residential settings.