What IRS form do I use for energy efficiency tax credits?

Attach Form 5695 and supporting documents to your Form 1040

Can I claim the energy credit every year?

There is no lifetime limit and you can claim the portion for which you qualify any and every year you make eligible improvements.

Does the credit apply to rental or second homes?

No. The credit applies only to homes that the owner uses as a residence.

What’s the difference between the $1,200 and $2,000 limits?

Qualifying heat pumps, biomass boilers or stoves are eligible for a credit of up to $2,000, while insulation and sealing materials can qualify for up to $1,200.

Advertiser Disclosure

What Is the Energy Efficient Home Improvement Credit?

May 6, 2025

5 min Read

Written by Andrew Lisa

Edited by Nupur Gambhir

HVAC Worker Performing Heat Pump Maintenance.

welcomia / Getty Images/iStockphoto

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

If you’re making eco-friendly home upgrades in 2024, you could qualify for up to $3,200 in non-refundable tax credits. This article explains which projects qualify, how to claim the Energy Efficient Home Improvement Credit, and how to get the maximum benefit — including for heat pumps, windows, insulation, and energy audits.

Who Qualifies for the Credit

To be eligible for the Energy Efficient Home Improvement Credit, the qualified improvements you make must be made at your primary U.S. residence. Your home can’t be a new build, and it must not be used for business purposes more than 20% of the time. If you use it for business purposes more than 20% of the time, you’ll get a reduced credit.

How To Claim the Energy Efficient Home Improvement Credit

To claim the Energy Efficient Home Improvement Credit on your tax return, here’s what you need to do:

Gather paperwork: Depending on the upgrade you are claiming, there are paperwork requirements. You’ll need your purchase receipt and Energy Star information for certain upgrades, or written proof of the eligibility of the item purchased.
Complete IRS Form 5695: To claim the credit, you’ll need to complete IRS Form 5695. This form allows you to list the amounts for qualifying home upgrades, and calculate the amount of the credit itself. There are several pages of inputs and qualifying questions to answer to help you claim the right amount.
Attach Form 5695 and paperwork to the tax return: When you submit your tax return, you’ll need to attach the required paperwork and Form 5695 to your return to claim the credit.
Use tax software: Most modern tax software will allow you to input the information and will automatically fill out the required forms to claim the Energy Efficient Home Improvement Credit. This makes it easier than doing things by hand and can instantly calculate how much you qualify for.

Today's Top Offers

How Much Can You Save?

The credit allows you to claim up to 30% of qualifying expenses, including installation charges. The maximum credits include:

Upgrade Type	Max Credit
Heat pumps, biomass boilers or stoves	Up to $2,000
Exterior doors	$250 per door, up to $500 total
Windows or skylights	Up to $600
Energy audit	Up to $150
Insulation or air sealing materials	Up to $1,200
A/C, water heaters, boilers	Up to $600
Maximum yearly credit	$3,200 total

What Upgrades Are Eligible?

Not all energy-efficient improvements qualify for the tax credit. Here are the upgrades that do.

Windows, Doors and Skylights

You can get a tax credit for windows and doors — $250 per door (up to $500 total), and up to $600 for windows or skylights. Keep in mind that they all must meet Energy Star requirements.

HVAC Systems, Water Heaters and Boilers

Certain air conditioners, water heaters, boilers and furnaces may qualify for up to $600 per item. These systems must meet or exceed the Consortium for Energy Efficiency’s highest efficiency tier set at the beginning of the calendar year.

There’s also a $2,000 credit for heat pumps, heat pump water heaters and biomass stoves and boilers that meet or exceed the CEE highest efficiency tier and operate at a thermal efficiency rating of at least 75%.

Insulation and Air Sealing

You can get up to $1,200 in tax credits for qualifying insulation and air-sealing material upgrades that meet the International Energy Conservation Code standards. Since these standards are updated regularly, the materials must meet the latest standard two years prior to the calendar year the materials were installed.

Today's Top Offers

Energy Audits

If you pay for a home energy audit, you can get up to $150 in tax credits. The audit must include a written report and be performed by a certified home energy auditor. Qualifications can be found on the Department of Energy website.

How Much Can You Save With the Credit

Energy-Efficient Upgrade	Maximum Credit
Heat pumps, biomass boilers or stoves	Up to $2,000
Exterior doors	$250 per exterior door — up to $500 total
Windows or skylights	Up to $600
Energy audit	Up to $150
Insulation or air sealing materials	Up to $1,200
Air conditioners, water heaters, and boilers	Up to $600

Tips to Maximize Your Energy Tax Credit

Improving your home could help you save thousands of dollars on your income taxes. But it’s important to do your research before making any eco-friendly purchase so you’re taking full advantage of the tax incentives and rebates. Here are a few tips for maximizing your tax savings while upgrading your home.

How to Claim the Credit

Gather receipts, installation documents, and Energy Star or CEE certification paperwork
Complete IRS Form 5695
Attach Form 5695 and supporting documents to your Form 1040
File your return or submit through tax software
Keep records for your tax files in case of audit

What to Know About the Energy-Efficient Home Improvement Credit

The credit covers up to 30% of qualified home upgrades, with a max of $3,200 per year
Eligible improvements include heat pumps, windows, insulation, doors, and energy audits
Products must meet Energy Star or CEE efficiency standards
Use Form 5695 and attach it to your federal tax return
Make all upgrades in the same calendar year to maximize your credit

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.