2020 Department of the Treasury

Internal Revenue Service

Instructions for Form 5695

Residential Energy Credits
Section references are to the Internal Revenue Code unless the case of costs connected with the reconstruction of your
otherwise noted. home, when your original use of the reconstructed home begins.
For purposes of the residential energy efficient property credit
General Instructions only, costs connected with the construction of a home are
treated as being paid when your original use of the constructed
home begins. If less than 80% of the use of an item is for
Future Developments nonbusiness purposes, only that portion of the costs that is
For the latest information about developments related to Form allocable to the nonbusiness use can be used to determine
5695 and its instructions, such as legislation enacted after they either credit.
were published, go to IRS.gov/Form5695. Only the residential energy efficient property credit (Part
Reminders ! I) is available for both existing homes and homes being
CAUTION constructed. The nonbusiness energy property credit

Form 2555-EZ. Form 2555-EZ has been made historical. (Part II) is only available for existing homes.
References to the form have been removed.
IRS guidance issued with respect to the energy credit
The Taxpayer Certainty and Disaster Tax Relief Act of under section 48, such as Notice 2018-59, does not
2019: !
CAUTION apply to the residential energy credits.
1. Extends the nonbusiness energy property credit to
Association or cooperative costs. If you are a member of a
property placed in service after 2017 and before 2021.
condominium management association for a condominium you
2. Provides that an electric heat pump water heater must own or a tenant-stockholder in a cooperative housing
yield a Uniform Energy Factor of at least 2.2 in the standard corporation, you are treated as having paid your proportionate
Department of Energy test procedure to be considered share of any costs of such association or corporation.
energy-efficient building property.
If you received a subsidy from a public utility for the
3. Provides that a natural gas, propane, or oil water heater purchase or installation of an energy conservation
must have either a Uniform Energy Factor of at least 0.82 or a !
CAUTION product and that subsidy wasn't included in your gross
thermal efficiency of at least 90 percent to be considered income, you must reduce your cost for the product by the
energy-efficient building property. amount of that subsidy before you figure your credit. This rule
also applies if a third party (such as a contractor) receives the
Section 48 guidance inapplicable. Costs, later, clarifies that
subsidy on your behalf.
guidance published under section 48 does not apply to the
residential energy credits.
Residential Energy Efficient Property
Purpose of Form Credit (Part I)
Use Form 5695 to figure and take your residential energy
credits. The residential energy credits are: If you made energy saving improvements to more than one
• The residential energy efficient property credit, and home that you used as a residence during 2020, enter the total
• The nonbusiness energy property credit. of those costs on the applicable line(s) of one Form 5695. For
qualified fuel cell property, see Lines 7a and 7b, later.
Also use Form 5695 to take any residential energy efficient
property credit carryforward from 2019 or to carry the unused You may be able to take a credit of 26% of your costs of
portion of the credit to 2021. qualified solar electric property, solar water heating property,
small wind energy property, geothermal heat pump property,
Who Can Take the Credits and fuel cell property. Include any labor costs properly allocable
You may be able to take the credits if you made energy saving to the onsite preparation, assembly, or original installation of the
improvements to your home located in the United States in residential energy efficient property and for piping or wiring to
2020. interconnect such property to the home. The credit amount for
costs paid for qualified fuel cell property is limited to $500 for
Home. A home is where you lived in 2020 and can include a each one-half kilowatt of capacity of the property.
house, houseboat, mobile home, cooperative apartment,
condominium, and a manufactured home that conforms to Qualified solar electric property costs. Qualified solar
Federal Manufactured Home Construction and Safety electric property costs are costs for property that uses solar
Standards. energy to generate electricity for use in your home located in the
United States. No costs relating to a solar panel or other
You must reduce the basis of your home by the amount of
property installed as a roof (or portion thereof) will fail to qualify
any credit allowed.
solely because the property constitutes a structural component
Main home. Your main home is generally the home where of the structure on which it is installed. Some solar roofing tiles
you live most of the time. A temporary absence due to special and solar roofing shingles serve the function of both traditional
circumstances, such as illness, education, business, military roofing and solar electric collectors, and thus serve functions of
service, or vacation, won't change your main home. both solar electric generation and structural support. These solar
Costs. For purposes of both credits, costs are treated as being roofing tiles and solar roofing shingles can qualify for the credit.
paid when the original installation of the item is completed, or, in This is in contrast to structural components such as a roof's

Oct 08, 2020 Cat. No. 66412G

decking or rafters that serve only a roofing or structural function These rules don't apply to married individuals filing a joint
and thus do not qualify for the credit. The home doesn't have to return.
be your main home. Example. Taxpayer A owns a house with Taxpayer B where
Qualified solar water heating property costs. Qualified solar they both reside. In 2020, they installed qualified fuel cell
water heating property costs are costs for property to heat water property at a cost of $20,000 with a kilowatt capacity of 5.
for use in your home located in the United States if at least half Taxpayer A paid $12,000 towards the cost of the property and
of the energy used by the solar water heating property for such Taxpayer B paid the remaining $8,000. The amount to be
purpose is derived from the sun. No costs relating to a solar allocated is $16,670 ($1,667 x 10 (kilowatt capacity x 2)). The
panel or other property installed as a roof (or portion thereof) will amount of cost allocable to Taxpayer A is $10,002 ($16,670 x
fail to qualify solely because the property constitutes a structural $12,000/$20,000). The amount of cost allocable to Taxpayer B
component of the structure on which it is installed. Some solar is $6,668 ($16,670 x $8,000/$20,000).
roofing tiles and solar roofing shingles serve the function of both
traditional roofing and solar electric collectors, and thus serve Nonbusiness Energy Property Credit
functions of both solar electric generation and structural support.
These solar roofing tiles and solar roofing shingles can qualify
(Part II)
for the credit. This is in contrast to structural components such You may be able to take a credit equal to the sum of:
as a roof's decking or rafters that serve only a roofing or 1. 10% of the amount paid or incurred for qualified energy
structural function and thus do not qualify for the credit. To efficiency improvements installed during 2020, and
qualify for the credit, the property must be certified for 2. Any residential energy property costs paid or incurred in
performance by the nonprofit Solar Rating Certification 2020.
Corporation or a comparable entity endorsed by the government
of the state in which the property is installed. The home doesn't However, this credit is limited as follows.
have to be your main home. • A total combined credit limit of $500 for all tax years after
2005.
Qualified small wind energy property costs. Qualified small
• A combined credit limit of $200 for windows for all tax years
wind energy property costs are costs for property that uses a after 2005.
wind turbine to generate electricity for use in connection with
• A credit limit for residential energy property costs for 2020 of
your home located in the United States. The home doesn't have $50 for any advanced main air circulating fan; $150 for any
to be your main home. qualified natural gas, propane, or oil furnace or hot water boiler;
Qualified geothermal heat pump property costs. Qualified and $300 for any item of energy efficient building property.
geothermal heat pump property costs are costs for qualified If the total of any nonbusiness energy property credits
geothermal heat pump property installed on or in connection you have taken in previous years (after 2005) is more
with your home located in the United States. Qualified ! than $500, you generally can't take the credit in 2020.
geothermal heat pump property is any equipment that uses the
CAUTION

ground or ground water as a thermal energy source to heat your Subsidized energy financing. Any amounts provided for by
home or as a thermal energy sink to cool your home. To qualify subsidized energy financing can't be used to figure the
for the credit, the geothermal heat pump property must meet the nonbusiness energy property credit. This is financing provided
requirements of the Energy Star program that are in effect at the under a federal, state, or local program, the principal purpose of
time of purchase. The home doesn't have to be your main home. which is to provide subsidized financing for projects designed to
Qualified fuel cell property costs. Qualified fuel cell property conserve or produce energy.
costs are costs for qualified fuel cell property installed on or in Qualified energy efficiency improvements. Qualified energy
connection with your main home located in the United States. efficiency improvements are the following building envelope
Qualified fuel cell property is an integrated system comprised of components installed on or in your main home that you owned
a fuel cell stack assembly and associated balance of plant during 2020 located in the United States if the original use of the
components that converts a fuel into electricity using component begins with you, the component can be expected to
electrochemical means. To qualify for the credit, the fuel cell remain in use at least 5 years, and the component meets certain
property must have a nameplate capacity of at least one-half energy standards.
kilowatt of electricity using an electrochemical process and an • Any insulation material or system that is specifically and
electricity-only generation efficiency greater than 30%. primarily designed to reduce heat loss or gain of a home when
Costs allocable to a swimming pool, hot tub, or any other installed in or on such a home.
! energy storage medium which has a function other than • Exterior windows and skylights.
CAUTION the function of such storage don't qualify for the • Exterior doors.
residential energy efficient property credit. • Any metal roof with appropriate pigmented coatings or asphalt
roof with appropriate cooling granules that are specifically and
Joint occupancy. If you occupied your home jointly with primarily designed to reduce the heat gain of your home.
someone other than your spouse, each occupant must complete For purposes of figuring the credit, don't include amounts
his or her own Form 5695. To figure the credit, the maximum paid for the onsite preparation, assembly, or original installation
qualifying costs that can be taken into account by all occupants of the building envelope component.
for qualified fuel cell property costs is $1,667 for each one-half
kilowatt of capacity of the property. The amount allocable to you To qualify for the credit, qualified energy efficiency
for qualified fuel cell property costs is the lesser of: ! improvements must meet certain energy efficiency
requirements. See Lines 19a Through 19h, later, for
1. The amount you paid, or
CAUTION

details.
2. The maximum qualifying cost of the property multiplied by
a fraction. The numerator is the amount you paid and the Residential energy property costs. Residential energy
denominator is the total amount paid by you and all other property costs are costs of new qualified energy property that is
occupants. installed on or in connection with your main home that you
owned during 2020 located in the United States. Include any
labor costs properly allocable to the onsite preparation,

-2- Instructions for Form 5695 (2020)

assembly, or original installation of the energy property.
Qualified energy property is any of the following. Specific Instructions
• Certain electric heat pump water heaters; electric heat
pumps; central air conditioners; natural gas, propane, or oil Part I
water heaters; and stoves that use biomass fuel.
• Qualified natural gas, propane, or oil furnaces and qualified Residential Energy
natural gas, propane, or oil hot water boilers.
• Certain advanced main air circulating fans used in natural Efficient Property Credit
gas, propane, or oil furnaces.
Before you begin Part I.
To qualify for the credit, qualified energy property must
Figure the amount of any of the following credits you are
! meet certain energy efficiency requirements. See Lines
claiming.
22a Through 22c, later, for details.
• Credit for the elderly or the disabled.
CAUTION

Joint ownership of qualified property. If you and a neighbor • Nonbusiness energy property credit (Part II of this form).
shared the cost of qualifying property to benefit each of your • Adoption credit.
main homes, both of you can take the nonbusiness energy • Mortgage interest credit.
property credit. You figure your credit on the part of the cost you • District of Columbia first-time homebuyer credit.
paid. The limit on the amount of the credit applies to each of you • Alternative motor vehicle credit.
separately. • Qualified plug-in electric drive motor vehicle credit.
Married taxpayers with more than one home. If both you Also, include on lines 1 through 4, and 8, any labor costs
and your spouse owned and lived apart in separate main homes, TIP properly allocable to the onsite preparation, assembly,
the limit on the amount of the credit applies to each of you or original installation of the property and for piping or
separately. If you are filing separate returns, both of you would wiring to interconnect such property to the home.
complete a separate Form 5695. If you are filing a joint return,
figure your nonbusiness energy property credit as follows. Line 1
1. Complete lines 17a through 17c and 19 through 24 of a
Enter the amounts you paid for qualified solar electric property.
separate Form 5695 for each main home.
See Qualified solar electric property costs, earlier.
2. Figure the amount to be entered on line 24 of both forms
(but not more than $500 for each form) and enter the combined
amount on line 24 of one of the forms.
Line 2
3. On line 25 of the form with the combined amount on Enter the amounts you paid for qualified solar water heating
line 24, cross out the preprinted $500 and enter $1,000. property. See Qualified solar water heating property costs,
earlier.
4. On the dotted line to the left of line 25, enter “More than
one main home.” Then, complete the rest of this form, including
line 18. The amount on line 18 can exceed $500. Line 3
5. Attach both forms to your return. Enter the amounts you paid for qualified small wind energy
property. See Qualified small wind energy property costs,
Joint occupancy. If you owned your home jointly with earlier.
someone other than your spouse, each owner must complete his
or her own Form 5695. To figure the credit, there are no Line 4
maximum qualifying costs for insulation, exterior doors, and a
metal or asphalt roof. Enter the amounts you paid for these items Enter the amounts you paid for qualified geothermal heat pump
on the appropriate lines of Form 5695, Part II. For windows and property. See Qualified geothermal heat pump property costs,
residential energy property costs, the amount allocable to you is earlier.
the smaller of:
1. The amount you paid, or Lines 7a and 7b
2. The maximum qualifying cost* of the property multiplied Any qualified fuel cell property costs must have been for your
by a fraction. The numerator is the amount you paid and the main home located in the United States. See Main home, earlier.
denominator is the total amount paid by you and all other If you check the “No” box, you can't include any fuel cell property
owners. costs on line 8.
* $2,000 for windows; $300 for energy-efficient building If you check the “Yes” box, enter the full address of your main
property; $150 for qualified natural gas, propane, or oil furnace home during 2020 on line 7b.
or hot water boiler; or $50 for an advanced main air circulating
fan. If you and your spouse are filing jointly and you each have
different main homes with qualified fuel cell property costs,
provide on line 7b the address of your main home. Add a sheet
providing the address of your spouse's main home. You and
your spouse should add your qualified fuel cell property costs
together on line 8 of one Form 5695.

Line 8
Enter the amounts you paid for qualified fuel cell property. See
Qualified fuel cell property costs, earlier.

Instructions for Form 5695 (2020) -3-

Line 14 Residential Energy Efficient Property Credit
Complete the following worksheet to figure the amount to enter Limit Worksheet—Line 14
on line 14. If you are claiming the child tax credit or the credit for
other dependents for 2020, the amount you enter on line 4 of the 1. Enter the amount from Form 1040,
worksheet depends on whether you are filing Form 2555. 1040-SR, or 1040-NR, line 18 . . 1.
• If you are filing Form 2555, enter the amount, if any, from 2. Enter the total of the following
line 16 of the Child Tax Credit and Credit for Other Dependents credit(s) if you are taking the
Worksheet in Pub. 972.
credit(s) on your 2020 income tax
• Otherwise, enter the amount from line 14 of the Line 14 return:
Worksheet in Pub. 972.
+ Foreign Tax Credit, Schedule 3
If you aren't claiming the child tax credit or the credit for (Form 1040), Part I, line 1 . . . . . .
TIP other dependents for 2020, you don't need Pub. 972. + Credit for Child and Dependent
Care Expenses, Schedule 3 (Form
1040), Part I, line 2 . . . . . . . . . .
+ Credit for the Elderly or the
Disabled, Schedule R (Form 1040),
line 22 . . . . . . . . . . . . . . . . . . .
+ Nonrefundable Education Credits,
Schedule 3 (Form 1040), Part I,
line 3 . . . . . . . . . . . . . . . . . . . .
+ Retirement Savings Contributions
Credit, Schedule 3 (Form 1040),
Part I, line 4 . . . . . . . . . . . . . . .
+ Nonbusiness Energy Property
Credit, Form 5695, Part II,
line 30 . . . . . . . . . . . . . . . . . . .
+ Alternative Motor Vehicle Credit,
Personal use part, Form 8910, Part
III, line 15 . . . . . . . . . . . . . . . . .
+ Qualified Plug-in Electric Drive
Motor Vehicle Credit (Including
Qualified Two-Wheeled Plug-in
Electric Vehicles), Personal use
part, Form 8936, Part III, line 23 .
+ Child Tax Credit and Credit for
Other Dependents:
• If filing Form 2555: Pub. 972,
Child Tax Credit and Credit for
Other Dependents Worksheet,
line 16.
• If not filing Form 2555: Pub. 972,
Line 14 Worksheet, line 14 . . . . .
+ Mortgage Interest Credit, Form
8396, line 9 . . . . . . . . . . . . . . .
+ Adoption Credit, Form 8839,
line 16 . . . . . . . . . . . . . . . . . . .
+ Carryforward of the District of
Columbia First-Time Homebuyer
Credit, Form 8859, line 3 . . . . . .
Note. Enter the total of the
preceding credit(s), only if allowed
and taken on your 2020 income tax
return. Not all credits are available
for all years nor for all filers. See the
instructions for your 2020 income
tax return. 2.
3. Subtract line 2 from line 1. Also
enter this amount on Form 5695,
line 14. If zero or less, enter -0- on
Form 5695, lines 14 and 15 . . . . 3.

-4- Instructions for Form 5695 (2020)

Manufacturer’s certification. For purposes of taking the Lifetime Limitation Worksheet—Line 18
credit, you can rely on the manufacturer’s certification in writing
that a product is qualifying property for the credit. Don't attach 1. Enter the amount, if any, from
the certification to your return. Keep it for your records. your 2006 Form 5695,
line 12 . . . . . . . . . . . . . . . . . 1.
Line 16 2. Enter the amount, if any, from
If you can't use all of the credit because of the tax liability limit your 2007 Form 5695,
(that is, line 14 is less than line 13), you can carry the unused line 15 . . . . . . . . . . . . . . . . . 2.
portion of the credit to 2021. 3. Enter the amount, if any, from
your 2009 Form 5695,
File this form even if you can't use any of your credit in 2020. line 11 . . . . . . . . . . . . . . . . . 3.
Part II 4. Enter the amount, if any, from
your 2010 Form 5695,
Nonbusiness Energy Property Credit line 11 . . . . . . . . . . . . . . . . . 4.
5. Enter the amount, if any, from
Before you begin Part II. your 2011 Form 5695,
Figure the amount of any credit for the elderly or the disabled line 14 . . . . . . . . . . . . . . . . . 5.
you are claiming. 6. Enter the amount, if any, from
your 2012 Form 5695,
Lines 17a Through 17c line 32 . . . . . . . . . . . . . . . . . 6.
7. Enter the amount, if any, from
Line 17a. To qualify for the credit, any qualified energy
efficiency improvements or residential energy property costs your 2013 Form 5695,
must have been for your main home located in the United line 30 . . . . . . . . . . . . . . . . . 7.
States. See Main home, earlier. If you check the “No” box, you 8. Enter the amount, if any, from
can't take the nonbusiness energy property credit. your 2014 Form 5695,
line 30 . . . . . . . . . . . . . . . . . 8.
Line 17b. Enter the full address of your main home during
2020. 9. Enter the amount, if any, from
your 2015 Form 5695,
Line 17c. You may only include expenses for qualified line 30 . . . . . . . . . . . . . . . . . 9.
improvements for an existing home or for an addition or
renovation to an existing home, and not for a newly constructed 10. Enter the amount, if any, from
home. If you check the “Yes” box, you can't claim any expenses your 2016 Form 5695,
for qualified improvements that are related to the construction of line 30 . . . . . . . . . . . . . . . . . 10.
your home, even if the improvement is installed after you have 11. Enter the amount, if any, from
moved into the home. your 2017 Form 5695,
line 30 . . . . . . . . . . . . . . . . . 11.
Line 18 12. Enter the amount, if any, from
If you took a nonbusiness energy property credit in 2006, 2007, your 2018 Form 5695,
2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, line 30 . . . . . . . . . . . . . . . . . 12.
or 2019, complete the following worksheet to figure the amount 13. Enter the amount, if any, from
to enter on line 18. If the total of the credits on line 13 of the your 2019 Form 5695,
worksheet is $500 or more, you generally can't take this credit in line 30 . . . . . . . . . . . . . . . . . 13.
2020. 14. Add lines 1 through 13. Also
enter this amount on Form 5695,
line 18. If $500 or more, stop;
you can't take the nonbusiness
energy property credit . . . . . . 14.

Lines 19a Through 19h

Note. A reference to the IECC is a reference to the 2009
International Energy Conservation Code as in effect (with
supplements) on February 17, 2009.
Don't include on lines 19a through 19d any amounts
! paid for the onsite preparation, assembly, or original
CAUTION installation of the components.

Line 19a. Enter the amounts you paid for any insulation material
or system (including any vapor retarder or seal to limit infiltration)
that is specifically and primarily designed to reduce the heat loss
or gain of your home when installed in or on such home and
meets the prescriptive criteria established by the IECC.

Instructions for Form 5695 (2020) -5-

 A component isn't specifically and primarily designed to Window Expense Worksheet—Line 19f
! reduce the heat loss or gain of your home if it provides
CAUTION structural support or a finished surface (such as drywall
1. Enter the amount from your
or siding) or its principal purpose is to serve any function 2006 Form 5695, line 2b . . . 1.
unrelated to the reduction of heat loss or gain.
2. Enter the amount from your
Line 19b. Enter the amounts you paid for exterior doors that 2007 Form 5695, line 2d . . . 2.
meet or exceed the version 6.0 Energy Star program 3. Enter the amount from your
requirements. 2009 Form 5695, line 2b . . . 3.
Line 19c. Enter the amounts you paid for a metal roof with the 4. Enter the amount from your
appropriate pigmented coatings or an asphalt roof with the 2010 Form 5695, line 2b . . . 4.
appropriate cooling granules that are specifically and primarily 5. Add lines 3 and 4 . . . . . . . . 5.
designed to reduce the heat gain of your home, and the roof
6. Multiply line 5 by 3.0 . . . . . . 6.
meets or exceeds the Energy Star program requirements in
effect at the time of purchase or installation. 7. Enter the amount from your
2011 Form 5695, line 3d . . . 7.
Line 19d. Enter the amounts you paid for exterior windows and
skylights that meet or exceed the version 6.0 Energy Star 8. Enter the amount from your
program requirements. 2012 Form 5695, line 21d . . 8.
9. Enter the amount from your
If you took the credit for windows in 2006, 2007, 2009,
2013 Form 5695, line 19d . . 9.
! 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018,
CAUTION or 2019, you may not be able to include window 10. Enter the amount from your
expenses this year. 2014 Form 5695, line 19d . . 10.
11. Enter the amount from your
Line 19f. If you reported expenses on your 2006 Form 5695, 2015 Form 5695, line 19d . . 11.
line 2b; 2007 Form 5695, line 2d; 2009 Form 5695, line 2b; 2010 12. Enter the amount from your
Form 5695, line 2b; 2011 Form 5695, line 3d; 2012 Form 5695,
2016 Form 5695, line 19d . . 12.
line 21d; 2013 Form 5695, line 19d; 2014 Form 5695, line 19d;
2015 Form 5695, line 19d; 2016 Form 5695, line 19d; 2017 Form 13. Enter the amount from your
5695, line 19d; 2018 Form 5695, line 19d; or 2019 Form 5695, 2017 Form 5695, line 19d . . 13.
line 19d, then use the worksheet next to figure the amount to 14. Enter the amount from your
enter on line 19f. 2018 Form 5695, line 19d . . 14.
15. Enter the amount from your
2019 Form 5695, line 19d . . 15.
16. Add lines 1, 2, and 6 through
15. Also enter this amount on
Form 5695, line 19f . . . . . . . 16.

Manufacturer’s certification. For purposes of taking the

credit, you can rely on a manufacturer’s certification in writing
that a building envelope component is an eligible building
envelope component. Don't attach the certification to your return.
Keep it for your records.

Lines 22a Through 22c

Also include on lines 22a through 22c any labor costs
TIP properly allocable to the onsite preparation, assembly,
or original installation of the property.

Line 22a. Enter the amounts you paid for energy-efficient

building property. Energy-efficient building property is any of the
following.
• An electric heat pump water heater that yields a Uniform
Energy Factor of at least 2.2 in the standard Department of
Energy test procedure.
• An electric heat pump that achieves the highest efficiency tier
established by the Consortium for Energy Efficiency (CEE) as in
effect on January 1, 2009.
• A central air conditioner that achieves the highest efficiency
tier that has been established by the CEE as in effect on January
1, 2009.
• A natural gas, propane, or oil water heater that has a Uniform
Energy Factor of at least 0.82 or a thermal efficiency of at least
90%.
• A stove that uses the burning of biomass fuel to heat your
home or heat water for your home that has a thermal efficiency
rating of at least 75%. Biomass fuel is any plant-derived fuel

-6- Instructions for Form 5695 (2020)

available on a renewable or recurring basis, including Nonbusiness Energy Property Credit
agricultural crops and trees, wood and wood waste and residues
Limit Worksheet—Line 29
(including wood pellets), plants (including aquatic plants),
grasses, residues, and fibers.
1. Enter the amount from Form 1040,
Don't enter more than $300 on line 22a. 1040-SR, or 1040-NR, line 18 . . 1.
Line 22b. Enter the amounts you paid for a natural gas, 2. Enter the total of the following
propane, or oil furnace or hot water boiler that achieves an credit(s) if you are taking the
annual fuel utilization rate of at least 95. credit(s) on your 2020 income tax
Don't enter more than $150 on line 22b. return:
Line 22c. Enter the amounts you paid for an advanced main air + Foreign Tax Credit, Schedule 3
circulating fan used in a natural gas, propane, or oil furnace that (Form 1040), Part I, line 1 . . . . . .
has an annual electricity use of no more than 2% of the total + Credit for Child and Dependent
annual energy use of the furnace (as determined in the standard Care Expenses, Schedule 3 (Form
Department of Energy test procedures). 1040), Part I, line 2 . . . . . . . . . .
Don't enter more than $50 on line 22c. + Credit for the Elderly or the
Manufacturer’s certification. For purposes of taking the Disabled, Schedule R (Form 1040),
credit, you can rely on a manufacturer’s certification in writing line 22 . . . . . . . . . . . . . . . . . . .
that a product is qualified energy property. Don't attach the + Nonrefundable Education Credits,
certification to your return. Keep it for your records. Schedule 3 (Form 1040), Part I,
line 3 . . . . . . . . . . . . . . . . . . . .
Line 25 + Retirement Savings Contributions
If the rules discussed earlier for joint occupancy apply, cross out Credit, Schedule 3 (Form 1040),
the preprinted $500 on line 25, and enter on line 25 the smaller Part I, line 4 . . . . . . . . . . . . . . .
of: Note. Enter the total of the
1. The amount on line 24, or preceding credit(s), only if allowed
and taken on your 2020 income tax
2. $500 multiplied by a fraction. The numerator is the
amount on line 24. The denominator is the total amount from return. Not all credits are available
line 24 for all owners. for all years nor for all filers. See the
instructions for your 2020 income
For more details, see Joint occupancy, earlier. tax return. 2.
3. Subtract line 2 from line 1. Also
Line 29 enter this amount on Form 5695,
line 29. If zero or less, enter -0- on
Complete the worksheet below to figure the amount to enter on Form 5695, lines 29 and 30 . . . . 3.
line 29.

Instructions for Form 5695 (2020) -7-