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Corporation or a comparable entity endorsed by the government of the state in which the property is installed. The home doesn't have to be your main home. Qualified small wind energy property costs. Qualified small wind energy property costs are costs for property that uses a wind turbine to generate electricity for use in connection with your home located in the United States. The home doesn't have to be your main home. Qualified geothermal heat pump property costs. Qualified geothermal heat pump property costs are costs for qualified geothermal heat pump property installed on or in connection with your home located in the United States. Qualified geothermal heat pump property is any equipment that uses the ground or ground water as a thermal energy source to heat your home or as a thermal energy sink to cool your home. To qualify for the credit, the geothermal heat pump property must meet the requirements of the Energy Star program that are in effect at the time of purchase. The home doesn't have to be your main home. Qualified biomass fuel property costs. Qualified biomass fuel property costs are costs for property which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and has a thermal efficiency rating of at least 75% (measured by the higher heating value of the fuel). Biomass fuel means any plant derived fuel available on a renewable or recurring basis. Qualified fuel cell property costs. Qualified fuel cell property costs are costs for qualified fuel cell property installed on or in connection with your main home located in the United States. Qualified fuel cell property is an integrated system comprised of a fuel cell stack assembly and associated balance of plant components that converts a fuel into electricity using electrochemical means. To qualify for the credit, the fuel cell property must have a nameplate capacity of at least one-half kilowatt of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%. Costs allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage don't qualify for the residential clean energy credit. Joint occupancy. If you occupied your home jointly with someone other than your spouse, each occupant must complete their own Form 5695. To figure the credit, the maximum qualifying costs that can be taken into account by all occupants for qualified fuel cell property costs is $1,667 for each one-half kilowatt of capacity of the property. The amount allocable to you for qualified fuel cell property costs is the lesser of: 1. The amount you paid, or 2. The maximum qualifying cost of the property multiplied by a fraction. The numerator is the amount you paid and the denominator is the total amount paid by you and all other occupants. These rules don't apply to married individuals filing a joint return. Example. Taxpayer A owns a house with Taxpayer B where they both reside. In 2022, they installed qualified fuel cell property at a cost of $20,000 with a kilowatt capacity of 5. Taxpayer A paid $12,000 towards the cost of the property and Taxpayer B paid the remaining $8,000. The amount to be allocated is $16,670 ($1,667 x 10 (kilowatt capacity x 2)). The amount of cost allocable to Taxpayer A is $10,002 ($16,670 x $12,000/$20,000). The amount of cost allocable to Taxpayer B is $6,668 ($16,670 x $8,000/$20,000). Energy Efficient Home Improvement Credit (Part II) You may be able to take a credit equal to the sum of: CAUTION ! 1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2022, and 2. Any residential energy property costs paid or incurred in 2022. However, this credit is limited as follows. • A total combined credit limit of $500 for all tax years after 2005. • A combined credit limit of $200 for windows for all tax years after 2005. • A credit limit for residential energy property costs for 2022 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. If the total of any nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you generally can't take the energy efficient home improvement credit in 2022. Subsidized energy financing. Any amounts provided for by subsidized energy financing can't be used to figure the energy efficient home improvement credit. This is financing provided under a federal, state, or local program, the principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy. Qualified energy efficiency improvements. Qualified energy efficiency improvements are the following building envelope components installed on or in your main home that you owned during 2022 located in the United States if the original use of the component begins with you, the component can be expected to remain in use at least 5 years, and the component meets certain energy standards. • Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home. • Exterior windows and skylights. • Exterior doors. • Any metal roof with appropriate pigmented coatings or asphalt roof with appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home. For purposes of figuring the credit, don't include amounts paid for the onsite preparation, assembly, or original installation of the building envelope component. To qualify for the credit, qualified energy efficiency improvements must meet certain energy efficiency requirements. See Lines 19a Through 19h, later, for details. Residential energy property costs. Residential energy property costs are costs of new qualified energy property that is installed on or in connection with your main home that you owned during 2022 located in the United States. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the energy property. Qualified energy property is any of the following. • Certain electric heat pump water heaters; electric heat pumps; central air conditioners; and natural gas, propane, or oil water heaters. • Qualified natural gas, propane, or oil furnaces and qualified natural gas, propane, or oil hot water boilers. • Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. To qualify for the credit, qualified energy property must meet certain energy efficiency requirements. See Lines 22a Through 22c, later, for details. Joint ownership of qualified property. If you and a neighbor shared the cost of qualifying property to benefit each of your main homes, both of you can take the energy efficient home improvement credit. You figure your credit on the part of the cost you paid. The limit on the amount of the credit applies to each of you separately. Married taxpayers with more than one home. If both you and your spouse owned and lived apart in separate main homes, the CAUTION ! CAUTION ! CAUTION ! -2- Instructions for Form 5695 (2022)