Line 52 of Form 1040 is used for two types of residential energy credits: the residential energy efficient property credit and the non-business energy property credit. Both credits may be claimed by completing Form 5695.
Residential Energy Efficient Property Credit: Taxpayers may be able to take this credit by completing and attaching Form 5695 if any of the following were expensed during 2012:
-Qualified solar electric property for use in the taxpayer’s United States home
-Qualified solar water heating property for use in the taxpayer’s United States home
-Qualified fuel cell property installed on or in connection with the taxpayer’s main United States home
-Qualified small wind energy property for use in connection with the taxpayer’s United States home
-Qualified geothermal heat pump property installed on or in connection with the taxpayer’s United States home
Non-business Energy Property Credit: Taxpayers may be able to take this credit by completing and attaching Form 5695 for any of the following 2012 improvements to their main United States home if the improvements were new and meet certain requirements for energy efficiency:
-Any insulation material or system primarily designed to reduce heat gain or loss in the home
-Exterior windows (including skylights)
-Exterior doors
-A metal roof or asphalt roof with pigmented coatings or cooling granules primarily designed to reduce the heat gain in the home
Taxpayers may also be able to take this credit for the cost of the following items if the items meet certain performance and quality standards:
-Certain electric heat pump water heaters, electric heat pumps, central air conditioners, and natural gas, propane, or oil water heaters
-A qualified furnace or hot water boiler that uses natural gas, propane, or oil
-A stove that burns biomass fuel to heat the home or to heat water for use in the home
-An advanced main air circulating fan used in a natural gas, propane, or oil furnace.
NOTE: Taxpayers who are members of a condominium management association (either via direct condominium ownership or via stock ownership in a cooperative housing corporation) are treated as having paid their proportionate share of any costs the association or corporation expended for purposes of these credits.
Photo by: Jon Callas