Form 5695 Checklist

Heat Pump Tax Credit Documentation

rebate.blue/qmid

Documents Needed

Contractor invoice with installation date and itemized costsAHRI certificate confirming efficiency ratingsManufacturer QMID code (4 characters)Electrical invoice (if panel upgrade/circuits added for equipment)Payment confirmation (receipt or bank statement)Equipment model number / product ID

QMID Lookup Steps

Find brand name on equipment or invoiceSearch rebate.blue/qmid for your brandNote the 4-character QMID codeVerify code matches IRS database (if needed)

Calculate Your Credit

Total heat pump cost:$ __________

Minus utility rebates received:- $ __________

Your eligible expense:= $ __________

Multiply by 30%:× 0.30

Your credit (max $2,000):= $ __________

Form 5695 Key Lines (Part II, Section B)

Lines 21a-21b: Answer Yes to Section B qualifying questionsLine 21c: Enter your property addressLine 25 (if electrical work): 25a=Yes, 25b=Code E (heat pump) or H (HPWH), 25c=electrical cost, 25d=equipment QMID, 25e=credit (max $600)Line 29a: Enter QMID (4 boxes) + heat pump cost (post-rebate)Line 29c: Enter QMID (4 boxes) + HPWH cost (if applicable)Line 29h: Calculate credit (30% of 29g, max $2,000)Line 32: Final credit amount → Schedule 3, line 5b

Before Submitting

Verified QMID is current and matches IRS databaseInstallation date is within the tax year claimedSubtracted any utility rebates from total costCredit transfers correctly to Schedule 3, line 5bSaved all documents for at least 3 years

Quick Reference

• Heat pump credit: up to $2,000 (30% of costs, Line 29)
• HP water heater credit: up to $2,000 (shared cap with heat pump)
• Electrical panel credit: up to $600 (30% of costs, Line 25)
• AC/furnace/water heater: up to $600 each (Lines 22-24)
• Combined annual limit: $3,200
• Credit is non-refundable (reduces tax owed, no excess refund)