Correction to the 2025 Instructions for Form 5695 joint occupancy calculation

We have corrected the calculation for joint occupants of a home who are claiming the energy efficient home improvement credit in Part II of the 2025 Form 5669. Please refer to the instructions below with respect to the joint occupancy section on page 3 of the 2025 Instructions for Form 5695. If you downloaded or printed the 2025 Instructions for Form 5695 prior to Jan. 26, 2026, please note the correction.

Joint occupancy. If you occupied your home jointly with someone, each occupant must complete their own Form 5695. To figure the credit, enter the amounts you paid for the items on lines 18a, 19a, 19d, 19e, 20a, 20b, 22a, 22b, 23a, 23b, 24a, 24b, 25c, 26b, or 29a through 29f.

If the aggregate credit that would be allowed to all occupants for any item of property exceeds the credit limit below, then you must figure your allocable share of the credit from each property. The credit allocable to you is the credit limit for that 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. Enter the credit allocable to you from that property on lines 18b, 19c, 19h, 20d, 22d, 23d, 24d, 25e, 26c, and 29h. Check the box on line 32a and attach a statement explaining how you allocated the credit.

If the total on line 27 is more than $1,200, then the credit allocable to you is further limited. Multiply $1,200 by a fraction. The numerator is the sum of the amounts on lines 18a, 19a, 19f, 20a, 20b, 22a, 22b, 23a, 23b, 24a, 24b, 25c, and 26b. The denominator is the total amount paid by you and all other occupants for the corresponding properties. Enter the result on line 28. Check the box on line 32a and attach a statement explaining how you allocated the credit.

If line 29h is more than $2,000, then the credit allocable to you is further limited. Multiply $2,000 by a fraction. The numerator is the amount on line 29g. The denominator is the total amount paid by you and all other occupants for the item of property. Enter the result on line 29h.

The credit limit for each property is as follows.

• $1,200 for insulation or air sealing material system.
• $250 for one exterior door and $500 for all exterior doors.
• $600 for windows.
• $600 for central air conditioners.
• $600 for natural gas, propane, or oil water heaters.
• $600 for natural gas, propane, or oil furnace or hot water boilers.
• $600 for improvements or replacements of panelboards, subpanelboards, branch circuits, or feeders.