1024 Publ 5976 (PDF)

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p5976.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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*Must meet the Consortium for Energy Efficiency (CEE) highest efficiency tier, not including any advanced tier, in effect as of the beginning of the year in which the property is placed in service. See the CEE Directory for more information.

**Must have a thermal efficiency rating of at least 75%.

***Must meet 2021 Energy Star efficiency criteria and certain fuel requirements.

****Must be installed in a manner consistent with the National Electric Code and meet certain other requirements.

Use these steps for claiming an energy efficient home improvement tax credit for residential energy property expenditures.

• Located in the US

• Existing home

• Primary residence

Qualified energy property

• Electric or natural gas heat pump water heater*

• Electric or natural gas heat pump*

• Central air conditioner*

• Natural gas, propane or oil water heater*

• Natural gas, propane or oil furnace or hot water boiler*

• Biomass stove or boiler**

• Oil furnace or hot water boiler***

• Improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders****

Buy, install, and use your qualified energy property

Get documentation

Residential energy property expenditures include expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.

File Form 5695 with your tax return

File Form 5695, Residential Energy Credits when you file your tax return for year in which your residential energy property was put in service.