Form 5695: The 2025 Energy Efficient Home Improvement Credit
Published November 5, 2026
Form 5695 is the form for residential energy credits. It has two main credits. Part I is for the residential clean energy credit, such as solar and battery systems. Part II is for the energy efficient home improvement credit, which covers certain upgrades to a home you already live in. This guide covers Part II. For Part I, read our guide to the residential clean energy credit rules for 2025.
This guide is general information. It is not advice about your own home or return.
What the credit covers
The credit equals 30% of the qualifying costs paid or incurred in 2025 for three kinds of items:
- Energy efficiency improvements, such as insulation and air sealing, exterior windows and skylights, and exterior doors.
- Residential energy property, such as heat pumps, heat pump water heaters, central air conditioners, certain water heaters, and biomass stoves and boilers.
- Home energy audits.
The limits
The instructions set these limits for 2025:
- A total combined credit limit of $1,200 for qualified energy property.
- A limit of $600 for any one qualified energy property item.
- A combined limit of $600 for all exterior windows and skylights.
- A limit of $250 for any one exterior door, and $500 in total for all exterior doors.
- A separate combined limit of $2,000 for heat pumps, heat pump water heaters, and biomass stoves and boilers.
- A limit of $150 for home energy audits.
Heat pump items have a separate annual limit. It replaces the older lifetime limit for those items. Read the instructions for the line-by-line rules before you enter amounts. The limits apply to the credit, not to what you spend. Spending above a limit does not add to the credit.
Who can claim it
The home must be your main home located in the United States. You must own it during 2025. The instructions also say the improvement must begin its original use with you. It must be reasonably expected to remain in use for at least 5 years. And it must meet certain energy standards.
If you and a neighbor shared the cost of qualifying property, each of you may figure the credit on the part you paid. That applies when the property benefits each of your homes. If you occupied the home jointly with someone, each occupant completes a separate Form 5695.
Financing and timing
Amounts from subsidized energy financing cannot be used to figure this credit. The instructions also say you cannot claim the energy efficient home improvement credit for expenditures or property placed in service after December 31, 2025. This credit applies to 2025 costs. It ended for later costs.
Home energy audits and manufacturer numbers
Since January 1, 2024, a home energy audit must be performed by a Qualified Home Energy Auditor, or under the supervision of one. The auditor must be certified by a Qualified Certification Program at the time of the audit. The form asks for the auditor's details on lines 26a through 26c.
For exterior doors, windows, and skylights installed in 2025, the form requires a valid qualified manufacturer identification number (QMID) on the applicable lines. Keep the product records that show it.
Efficiency standards
Qualified improvements must meet energy efficiency requirements. The rules differ by item. Check the product rating and the instructions before you claim anything. A product can be installed and still fail the standard.
Next steps
Gather receipts, product records, manufacturer identification numbers, and any audit reports for 2025 work. Read the Part II lines and the limits before you enter amounts. If you also installed a clean energy system, see the residential clean energy credit guide for Part I.
Sources: Sources: IRS, Form 5695, Residential Energy Credits (2025) (https://www.irs.gov/pub/irs-pdf/f5695.pdf); Instructions for Form 5695 (2025) (https://www.irs.gov/pub/irs-pdf/i5695.pdf) This is general information, not advice about your specific return.
