I have a qualified energy hot water heater purchased in 2025. I do not understand how to complete the qualified energy property costs page.

[TomK2023]

You must file Form 5695 Residential Energy Credits to receive credits for home energy efficiency improvements.

The credit is 30% of costs (up to $2,000 for heat pump water heaters) for purchases made on/before 12/31/25.

Per the IRS: Beginning January 1, 2025, if you are claiming the energy efficient home improvement credit for specified property placed into service in 2025, you must include the four-character alphanumeric unique qualified manufacturer identification number (QMID) for each item.

To add or remove this form:

1. Navigate to the residential energy credit section: TurboTax Online/Mobile: Go to the residential energy credit screen under Deductions & Credits; TurboTax Desktop: Search for this exact phrase including the comma and spaces: "5695, residential energy credit". Select the Jump to link or, Go to Federal Taxes. If asked, How do you want to enter your deductions and credits, select I'll choose what I work on.  Under Your Home, select Start or Update next to Home Energy Credits.
2. At the bottom of the Energy Efficient Home Improvements screen, answer Yes, then select Continue.  To delete the 5695, answer No, select Continue, and then answer Yes on the following screen to confirm the deletion.
3. Follow the instructions to enter your energy-saving improvement costs.

For more information, please see TurboTax FAQ; How do I add or remove Form 5695?

[Kathy101]

I have the same question, but your response doesn't really answer it.  I'm at the "Enter your qualified energy property costs" page. What does it mean that we have to enter both "cost of the most expensive (product)" and "cost of all other (product)"? Where do we put in the cost we paid?

[Vanessa A]

  It is asking because you now need to enter the Manufacturers QMID to obtain the credit.  Without that, you will not be able to claim the credit. So to start, enter the QMID of each of the 4 most expensive windows and then the price of the 4 most expensive windows matching those QMID's.  If you did install more than 4 then you can enter the total cost of the remaining windows in the "cost of all other (product)"  

For the doors, you can do the same thing, but it is only asking for the 3 most expensive doors along with the QMID. 

The credit is 30% of the cost and is limited to:

•  $250 per door and a maximum of $500 total door credit.
•  $600 total for windows

Only the cost of the property itself is considered for the credit, not the cost of installation.  

Home Improvement Energy Efficient Credit

[grant311]

This still does not answer the original question.  Why does it say "most expensive" and then "all other"?  This wording is very confusing and theres no explanation for it.

[RobertB4444]

It's matching the product with the qualified manufacturer.  The qualified manufacturer has registered the products that they make.  By putting what you were charged for the most expensive product you are answering questions about the mark-up in your area as well as entering information about what you paid.

[jlevengood08]

So where do I put the cost that I paid?  Under "most expensive" or "all other"?  And how do I know what other units cost?  I only know the cost of the one I installed.

[DoninGA]

@jlevengood08 If only one was purchased and installed in 2025 then use the "most expensive" since it is the only one.

[jlevengood08]

Thank you.  It is very misleading.  So I can leave the "all other" line blank?

[DoninGA]

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@jlevengood08 wrote:

Thank you.  It is very misleading.  So I can leave the "all other" line blank?

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Yes, you can leave those lines blank