What's new for Form 5695 for tax year 2023:
Energy efficient home improvement credit: The nonbusiness energy property credit has changed to the energy efficient home improvement credit. The credit is extended to property placed in service through December 31, 2022. See here for more information.
Residential clean energy credit: The residential energy efficient property credit has changed to the residential clean energy credit. The credit rate for property placed in service in 2022 through 2033 is 30%. See here for more information.
Individual Form 5695, Residential Energy Credits won't generate if the credit amount has been overridden, or if you've claimed $500 or more nonbusiness energy property credits on prior tax returns.
Follow these steps to remove the override
- Go to the Input Return tab.
- Select Credits from the left menu.
- Select Recovery Rebate, EIC, Residential Energy, Oth Credits.
- Go to the Home tab
- In the Property section, remove any entry in Residential energy efficient property credit (Form 5695) [Override].
- Scroll to the section Nonbusiness Energy Property Credit (5695).
- Remove any entry in Nonbusiness energy credit (Form 5695) [Override].
If you've previously claimed nonbusiness energy property credits
These credits are subject to a lifetime limitation. Generally, you can't claim the credit if you have previously claimed $500 or more of the credit since 2006. For more information, refer to Form 5695 instructions.
