Remodelers, educate yourselves about these forms so you can help clients claim the American Recovery and Reinvestment Act of 2009 federal tax credit for projects they completed last year that meet the parameters for the credit.

Your clients need to fill out IRS form 5695. The information from this form should be transferred to form 1040. Homeowners need to keep the manufacturer’s product certification and receipts on file, but do not need to submit those items with their tax forms.

—Nina Patel, senior editor, REMODELING.

Part I of Claim FormThe first section addresses insulation, windows, doors, roofs, HVAC, biomass stoves, and non-solar water heaters. The tax credit for these products is 30%, up to a total of $1,500. Homeowners can take part of the $1,500 in 2009 and the rest in 2010 if they are for separate purchases. The instructions for lines 2a to 2d and 3a to 3c list the specific requirements for each type of credit a homeowner can claim, as does the Energy Star website (www.energystar.gov). For example, an electric heat pump that has an HSPF of at least 9, a SEER of at least 15, and an EER of at least 13. Or windows with a U-factor of 0.30 or less and an SHGC of 0.30 or less.
Part I of Claim FormThe first section addresses insulation, windows, doors, roofs, HVAC, biomass stoves, and non-solar water heaters. The tax credit for these products is 30%, up to a total of $1,500. Homeowners can take part of the $1,500 in 2009 and the rest in 2010 if they are for separate purchases. The instructions for lines 2a to 2d and 3a to 3c list the specific requirements for each type of credit a homeowner can claim, as does the Energy Star website (www.energystar.gov). For example, an electric heat pump that has an HSPF of at least 9, a SEER of at least 15, and an EER of at least 13. Or windows with a U-factor of 0.30 or less and an SHGC of 0.30 or less.
Part II of Claim FormThe second section addresses geothermal heat pumps, solar panels, solar water heaters, small wind-energy systems, and fuel cells. The tax credit for these products is 30% with no upper limit. Unused credit can be carried forward through 2016. Taxpayers should add the total from this section (line 27) and Part I (line 11) and place the total on line 29 of form 5695.
Part II of Claim FormThe second section addresses geothermal heat pumps, solar panels, solar water heaters, small wind-energy systems, and fuel cells. The tax credit for these products is 30% with no upper limit. Unused credit can be carried forward through 2016. Taxpayers should add the total from this section (line 27) and Part I (line 11) and place the total on line 29 of form 5695.
Transfer to 1040Taxpayers place the amount from line 29 of form 5695 on line 52 of the 1040 form.
Transfer to 1040Taxpayers place the amount from line 29 of form 5695 on line 52 of the 1040 form.