Form 5695 for 2025: the last year for the home energy credits

• Termination: the residential clean energy credit does not apply to expenditures after December 31, 2025, and the energy efficient home improvement credit does not apply to expenditures or property placed in service after that date.
• QMID: for specified property placed in service in 2025, the home improvement credit needs the four-character qualified manufacturer identification number for each item.
• Line 25 (new): documents the link between enabling property, such as a panelboard, and the property it enables, with codes A to G on line 25b.
• Line 32b (new): a checkbox for condominium or cooperative owners claiming a fractional share of the costs.

A client can still use Form 5695 to claim a residential clean energy credit carried forward from 2024, and any 2025 credit that the tax liability limit blocks carries into 2026. Keep the carryforward schedule in the file.

• Invoices showing what was installed and when, with the QMID for each item.
• For panel upgrades, which enabled property they serve.
• For condo and co-op owners, the association’s statement of each owner’s share.