Tax Credit: Residential Energy Efficient Property Credit

residential energy efficient homes

If you made energy efficient home improvements you may be eligible for a tax credit. (Photo Credit:

If you installed certain qualified residential alternative energy equipment in your home you may be eligible for the Residential Energy Efficient Property Credit. With this credit you are able to claim up to 30% of the cost of the qualifying equipment (including labor costs in most cases). Please note this is a non-refundable credit not a deduction, so it will reduce the amount of tax you owe, rather than give you cash back.

Conditions to Receive the Credit

  • The equipment must have been installed in your home in the United States.
  • Fuel cell property only qualifies if it was installed in your primary home located within the United States.
  • Be sure you have the manufacturer’s tax credit certification statement because not all energy efficient improvements qualify.

If you are eligible for this credit complete Form 5695, Residential Energy Credits.

Sources & Forms (External Links)
Form 5695, Residential Energy Credits