Instructions for IRS Form 5695 - Residential Energy Credit 2017

January 1, 2017 "Instructions For Irs Form 5695 - Residential Energy Credit" contain the latest filing requirements for the IRS-issued Form 5695. Download your copy of the instructions by clicking the link below.

IRS Form 5695 is tax form released and collected by the Internal Revenue Service of the United States.

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 5695
Residential Energy Credit
Section references are to the Internal Revenue Code unless
Association or cooperative costs. If you are a member of a
otherwise noted.
condominium management association for a condominium you
own or a tenant-stockholder in a cooperative housing
General Instructions
corporation, you are treated as having paid your proportionate
share of any costs of such association or corporation.
Future Developments
If you received a subsidy from a public utility for the
purchase or installation of an energy conservation
!
For the latest information about developments related to Form
product and that subsidy wasn't included in your gross
5695 and its instructions, such as legislation enacted after they
CAUTION
income, you must reduce your cost for the product by the
were published, go to IRS.gov/Form5695.
amount of that subsidy before you figure your credit. This rule
What's New
also applies if a third party (such as a contractor) receives the
subsidy on your behalf.
Part I: Lines 3, 4, 7a, 7b, and 8. The residential energy
Residential Energy Efficient Property
efficient property credit for the following costs expired on
December 31, 2016: qualified small wind energy property costs,
Credit (Part I)
qualified geothermal heat pump property costs, and qualified
fuel cell property costs. The instructions for lines 3, 4, 7a, 7b,
If you made energy saving improvements to more than one
and 8 have been reserved. To find out if legislation extended the
home that you used as a residence during 2017, enter the total
credit for these costs so you can claim them on your 2017 return,
of those costs on the applicable line(s) of one Form 5695.
go to IRS.gov/Extenders.
You may be able to take a credit of 30% of your costs of
Part II: Nonbusiness Energy Property Credit. The
qualified solar electric property and solar water heating property.
nonbusiness energy property credit expired on December 31,
Include any labor costs properly allocable to the onsite
2016. Part II has been reserved. To find out if legislation
preparation, assembly, or original installation of the residential
extended the credit so you can claim it on your 2017 return, go to
energy efficient property and for piping or wiring to interconnect
IRS.gov/Extenders.
such property to the home.
Purpose of Form
Qualified solar electric property costs. Qualified solar
electric property costs are costs for property that uses solar
Use Form 5695 to figure and take the residential energy efficient
energy to generate electricity for use in your home located in the
property credit.
United States. No costs relating to a solar panel or other
property installed as a roof (or portion thereof) will fail to qualify
Also, use Form 5695 to take any residential energy efficient
solely because the property constitutes a structural component
property credit carryforward from 2016 or to carry the unused
portion of the credit to 2018.
of the structure on which it is installed. The home doesn't have to
be your main home.
Who Can Take the Credit
Qualified solar water heating property costs. Qualified solar
You may be able to take the credit if you made energy saving
water heating property costs are costs for property to heat water
improvements to your home located in the United States in
for use in your home located in the United States if at least half
2017.
of the energy used by the solar water heating property for such
purpose is derived from the sun. No costs relating to a solar
Home. A home is where you lived in 2017 and can include a
panel or other property installed as a roof (or portion thereof) will
house, houseboat, mobile home, cooperative apartment,
fail to qualify solely because the property constitutes a structural
condominium, and a manufactured home that conforms to
component of the structure on which it is installed. To qualify for
Federal Manufactured Home Construction and Safety
the credit, the property must be certified for performance by the
Standards.
nonprofit Solar Rating Certification Corporation or a comparable
You must reduce the basis of your home by the amount of
entity endorsed by the government of the state in which the
any credit allowed.
property is installed. The home doesn't have to be your main
Main home. Your main home is generally the home where
home.
you live most of the time. A temporary absence due to special
Nonbusiness Energy Property Credit
circumstances, such as illness, education, business, military
service, or vacation, won't change your main home.
(Part II)
Costs. For purposes of the credit, costs are treated as being
RESERVED FOR FUTURE USE
paid when the original installation of the item is completed, or, in
the case of costs connected with the reconstruction of your
At the time these instructions went to print, the
home, when your original use of the reconstructed home begins.
nonbusiness energy property credit (Part II of this form)
!
Costs connected with the construction of a home are treated as
had expired. You can't claim the nonbusiness energy
being paid when your original use of the constructed home
CAUTION
property credit for property placed in service after 2016. Part II is
begins. If less than 80% of the use of an item is for nonbusiness
now shown as “Reserved for Future Use” in case Congress
purposes, only that portion of the costs that is allocable to the
extends the credit for 2017. To find out if legislation extended the
nonbusiness use can be used to determine the credit.
Jan 10, 2018
Cat. No. 66412G
2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 5695
Residential Energy Credit
Section references are to the Internal Revenue Code unless
Association or cooperative costs. If you are a member of a
otherwise noted.
condominium management association for a condominium you
own or a tenant-stockholder in a cooperative housing
General Instructions
corporation, you are treated as having paid your proportionate
share of any costs of such association or corporation.
Future Developments
If you received a subsidy from a public utility for the
purchase or installation of an energy conservation
!
For the latest information about developments related to Form
product and that subsidy wasn't included in your gross
5695 and its instructions, such as legislation enacted after they
CAUTION
income, you must reduce your cost for the product by the
were published, go to IRS.gov/Form5695.
amount of that subsidy before you figure your credit. This rule
What's New
also applies if a third party (such as a contractor) receives the
subsidy on your behalf.
Part I: Lines 3, 4, 7a, 7b, and 8. The residential energy
Residential Energy Efficient Property
efficient property credit for the following costs expired on
December 31, 2016: qualified small wind energy property costs,
Credit (Part I)
qualified geothermal heat pump property costs, and qualified
fuel cell property costs. The instructions for lines 3, 4, 7a, 7b,
If you made energy saving improvements to more than one
and 8 have been reserved. To find out if legislation extended the
home that you used as a residence during 2017, enter the total
credit for these costs so you can claim them on your 2017 return,
of those costs on the applicable line(s) of one Form 5695.
go to IRS.gov/Extenders.
You may be able to take a credit of 30% of your costs of
Part II: Nonbusiness Energy Property Credit. The
qualified solar electric property and solar water heating property.
nonbusiness energy property credit expired on December 31,
Include any labor costs properly allocable to the onsite
2016. Part II has been reserved. To find out if legislation
preparation, assembly, or original installation of the residential
extended the credit so you can claim it on your 2017 return, go to
energy efficient property and for piping or wiring to interconnect
IRS.gov/Extenders.
such property to the home.
Purpose of Form
Qualified solar electric property costs. Qualified solar
electric property costs are costs for property that uses solar
Use Form 5695 to figure and take the residential energy efficient
energy to generate electricity for use in your home located in the
property credit.
United States. No costs relating to a solar panel or other
property installed as a roof (or portion thereof) will fail to qualify
Also, use Form 5695 to take any residential energy efficient
solely because the property constitutes a structural component
property credit carryforward from 2016 or to carry the unused
portion of the credit to 2018.
of the structure on which it is installed. The home doesn't have to
be your main home.
Who Can Take the Credit
Qualified solar water heating property costs. Qualified solar
You may be able to take the credit if you made energy saving
water heating property costs are costs for property to heat water
improvements to your home located in the United States in
for use in your home located in the United States if at least half
2017.
of the energy used by the solar water heating property for such
purpose is derived from the sun. No costs relating to a solar
Home. A home is where you lived in 2017 and can include a
panel or other property installed as a roof (or portion thereof) will
house, houseboat, mobile home, cooperative apartment,
fail to qualify solely because the property constitutes a structural
condominium, and a manufactured home that conforms to
component of the structure on which it is installed. To qualify for
Federal Manufactured Home Construction and Safety
the credit, the property must be certified for performance by the
Standards.
nonprofit Solar Rating Certification Corporation or a comparable
You must reduce the basis of your home by the amount of
entity endorsed by the government of the state in which the
any credit allowed.
property is installed. The home doesn't have to be your main
Main home. Your main home is generally the home where
home.
you live most of the time. A temporary absence due to special
Nonbusiness Energy Property Credit
circumstances, such as illness, education, business, military
service, or vacation, won't change your main home.
(Part II)
Costs. For purposes of the credit, costs are treated as being
RESERVED FOR FUTURE USE
paid when the original installation of the item is completed, or, in
the case of costs connected with the reconstruction of your
At the time these instructions went to print, the
home, when your original use of the reconstructed home begins.
nonbusiness energy property credit (Part II of this form)
!
Costs connected with the construction of a home are treated as
had expired. You can't claim the nonbusiness energy
being paid when your original use of the constructed home
CAUTION
property credit for property placed in service after 2016. Part II is
begins. If less than 80% of the use of an item is for nonbusiness
now shown as “Reserved for Future Use” in case Congress
purposes, only that portion of the costs that is allocable to the
extends the credit for 2017. To find out if legislation extended the
nonbusiness use can be used to determine the credit.
Jan 10, 2018
Cat. No. 66412G
credit so you can claim it on your 2017 return, go to
IRS.gov/
If you aren't claiming the child tax credit for 2017, you
Extenders.
don't need Pub. 972.
TIP
Specific Instructions
Residential Energy Efficient Property Credit
Limit Worksheet—Line 14
Part I
Residential Energy
1.
Enter the amount from Form 1040,
line 47; or Form 1040NR,
Efficient Property Credit
line 45
1.
. . . . . . . . . . . . . . . . . . .
2.
Enter the total, if any, of your credits
Before you begin Part I.
from Form 1040, lines 48 through
Figure the amount of any of the following credits you are
51, and Schedule R, line 22; or
claiming.
Form 1040NR, lines 46 through
Credit for the elderly or the disabled.
48
2.
. . . . . . . . . . . . . . . . . . . . . .
Nonbusiness energy property credit (Part II of this form).*
3.
Enter the amount, if any, from Form
Adoption credit.
5695, line 30 *
3.
. . . . . . . . . . . . .
Mortgage interest credit.
4.
If you are filing Form 2555 or Form
District of Columbia first-time homebuyer credit.
2555-EZ, enter the amount, if any,
Alternative motor vehicle credit.
from line 13 of the Child Tax Credit
Qualified plug-in electric vehicle credit.
Qualified plug-in electric drive motor vehicle credit.
Worksheet in Pub. 972. Otherwise,
enter the amount, if any, from line 12
* If applicable.
of the Line 11 Worksheet in Pub.
972
4.
. . . . . . . . . . . . . . . . . . . . .
Also, include on lines 1 and 2 any labor costs properly
5.
Enter the amount, if any, from Form
allocable to the onsite preparation, assembly, or original
8396, line 9
5.
TIP
. . . . . . . . . . . . . . .
installation of the property and for piping or wiring to
6.
Enter the amount, if any, from Form
interconnect such property to the home.
8839, line 16
6.
. . . . . . . . . . . . . . .
7.
Enter the amount, if any, from Form
Line 1
8859, line 3
7.
. . . . . . . . . . . . . . .
8.
Enter the amount, if any, from Form
Enter the amounts you paid for qualified solar electric property.
8910, line 15
8.
See
Qualified solar electric property
costs, earlier.
. . . . . . . . . . . . . . .
9.
Enter the amount, if any, from Form
Line 2
8936, line 23
9.
. . . . . . . . . . . . . . .
10.
Add lines 2 through 9
. . . . . . . . .
10.
Enter the amounts you paid for qualified solar water heating
property. See
Qualified solar water heating property
costs,
11.
Subtract line 10 from line 1. Also
earlier.
enter this amount on Form 5695,
line 14. If zero or less, enter -0- on
Lines 3, 4, 7a, 7b, and 8
Form 5695, lines 14 and 15
11.
. . . .
Reserved for future use
* If applicable.
At the time these instructions went to print, the
residential energy efficient property credit for qualified
!
small wind energy property costs, qualified geothermal
Manufacturer’s certification. For purposes of taking the
CAUTION
heat pump property costs, and qualified fuel cell property costs
credit, you can rely on the manufacturer’s certification in writing
had expired. You can't claim a residential energy efficient
that a product is qualifying property for the credit. Don't attach
property credit for these costs if the property was placed in
the certification to your return. Keep it for your records.
service after 2016. Lines 3, 4, 7a, 7b, and 8 are now shown as
“Reserved for future use” in case Congress extends the credit for
Line 16
these costs for 2017. To find out if legislation extended the credit
for these costs so you can claim them on your 2017 return, go to
If you can't use all of the credit because of the tax liability limit
IRS.gov/Extenders.
(that is, line 14 is less than line 13), you can carry the unused
portion of the credit to 2018.
Line 14
File this form even if you can't use any of your credit in 2017.
Complete the following
worksheet
to figure the amount to enter
Part II
on line 14. If you are claiming the child tax credit for 2017, the
Nonbusiness Energy Property Credit
amount you enter on line 4 of the worksheet depends on
whether you are filing Form 2555 or Form 2555-EZ.
RESERVED FOR FUTURE USE
If you are filing Form 2555 or Form 2555-EZ, enter the
amount, if any, from line 13 of the Child Tax Credit Worksheet in
See the
Caution
in the General Instructions under Nonbusiness
Pub. 972.
Energy Property Credit (Part II), earlier.
Otherwise, enter the amount from line 12 of the Line 11
Worksheet in Pub. 972.
-2-
Instructions for Form 5695 (2017)

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