Use these steps for claiming an energy efficient home improvement tax credit for exterior doors, windows, skylights and associated insulation materials. Step 1: Check eligibility Make sure the property on which you are installing the products is eligible: Located in the United States An existing home that you improve or add onto, not a new home The home must be owned and used by you as your primary residence . You can't claim the credit if you're a landlord or other property owner who doesn't live in the home. Make sure you meet the necessary criteria as a buyer and the exterior doors, windows, skylights and insulation materials you plan to buy are eligible for the credit. The manufacturer, retailer or installer should be able to help you validate eligibility. Check on the Energy Star webpage for residential windows, doors, and skylight eligible products for where you live. Step 2: Purchase and install the products When you buy and install the products confirm with the seller/installer what you have selected is eligible for the credit. Step 3: Get documentation While documentation is not required to be filed with your tax return, it may be required if your tax return is audited. The IRS strongly recommends you retain your purchase receipts and installation records as well as any Energy Star and/or National Fenestration Rating Council labels affixed to the windows, skylights, and doors. These documents will also be needed to substantiate your adjusted basis if the property is eventually sold. Step 4: File Form 5695 with your tax return You will need to file Form 5695, Residential Energy Credits when you file your tax return for the year in which you placed the windows, doors or skylights in service.
