As of the latest information available, there are a few updates and considerations regarding Form 5695 for the 2025 filing season:
- No Changes to the Tax Credit Rate: The federal solar tax credit remains at 30% of eligible costs through 2032. This applies to solar panel systems, solar water heaters, battery storage systems, and other renewable energy systems.
- Checkbox for Shared Occupancy: The 2024 Form 5695 introduces a checkbox for taxpayers who share occupancy with someone other than a spouse. This allows both individuals to claim the credit if they jointly paid for qualifying property.
- Energy-Efficient Home Improvement Credits: For improvements installed after January 1, 2023, the credit is up to 30% of qualified expenses, with annual limits. For example, there’s a $1,200 limit for energy-efficient property costs and a $2,000 limit for qualified heat pumps, water heaters, biomass stoves, or boilers.
- Manufacturing Requirements in 2025: Starting in 2025, to claim the credit, qualifying items must be produced by a qualified manufacturer, and taxpayers must report the PIN for the item on their tax return.
- Carry-Over Credits: If you didn’t claim the full credit in previous years due to insufficient tax liability, you can carry over the remaining credit to future years.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-recent-updates-to-form-5695-that-i-should-be-aware-of/
