Kentucky Kentucky Energy Efficiency Products Tax Credit (OBSOLETE)

Kentucky Energy Efficiency Products Tax Credit (OBSOLETE)
Form 5695-K
5695–K
41A720–S7 (10–15)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE
➤
➤

2015

*1500030306*

KENTUCKY ENERGY EFFICIENCY PRODUCTS TAX CREDIT
See instructions.
KRS 141.435 and KRS 141.436
Attach to Form 720, 720S, 725, 740, 740–NP, 741, 765 or 765–GP.

Name of Entity/Individual

Identification Number (SSN or FEIN)

__ __ __ __ __ __ __ __ __

Kentucky Corporation/LLET

Account Number (if applicable)

__ __ __ __ __ __

Part I–Qualifications
					
	 <	
	 <	
	 <	
		

Yes	

No

Was the installation of the energy efficiency products completed before January 1, 2015?.............................................
Was the installation of the energy efficiency products completed after December 31, 2015?..........................................
Have you taken a tax credit as provided by KRS 141.437 for an ENERGY STAR
home or an ENERGY STAR manufactured home?................................................................................................................

If you answered “yes” to any of the questions above, STOP; you do not qualify for these credits, except for any carryforward balance on line 66.
If you answered “no” to all of the questions above, go to Part II.

Part II–Installation of Energy Efficiency Products
Residence or Single–family or Multifamily
Residential Rental Unit:
	 1.	 Qualified upgraded insulation costs............. 	1	
00
	 2.	 Multiply line 1 by 30% (.30)......................... 	 2		00
	 3.	 Credit from pass–through entities.............. 	 3		00
	 4.	 Add lines 2 and 3.......................................... 	 4		00
	5.	 Maximum credit amount.............................. 	5	
$100	 00	
	 6.	 Enter the smaller of line 4 or line 5.....................................................	6	
00
	 7.	 Qualified energy–efficient windows and
		 storm doors..................................................... 	7	
00
	 8.	 Multiply line 7 by 30% (.30)......................... 	 8		00
	 9.	 Credit from pass–through entities.............. 	 9		00
	10.	 Add lines 8 and 9.......................................... 	10		00
	11.	 Maximum credit amount.............................. 	11	
$250	 00	
	12.	 Enter the smaller of line 10 or line 11.................................................. 		12	
00
	13.	 Qualified energy property.............................. 	13	
00
	14.	 Multiply line 13 by 30% (.30)....................... 	14		00
	15.	 Credit from pass–through entities.............. 	15	
00
	16.	 Add lines 14 and 15...................................... 	16	
00
	17.	 Maximum credit amount.............................. 	17	
$250	 00
	18.	 Enter the smaller of line 16 or line 17................................................. 	18	
00
	19.	 Add lines 6, 12 and 18............................................................................ 	19	
00
	20.	 Maximum credit amount........................................................................ 	20	
$500	 00
	21.	 Enter the smaller of line 19 or line 20......................................................................................... 	21	
Residence or Single–family Residential
Rental Unit:
00
	22.	 Qualified active solar space–heating system.	22	
	23.	 Qualified passive solar space–heating system.	23	
00
	24.	 Qualified combined active solar space–heating
		 and water–heating system................................ 	24	
00	
	25.	 Qualified solar water–heating system.......... 	25	
00
	26.	 Qualified wind turbine or wind machine...... 	26	
00
	27.	 Add lines 22 through 26.................................. 	27	
00
	28.	 Multiply line 27 by 30% (.30)............................. 	28	
00
	29.	 Credit from pass–through entities..................... 	29	
00
	30.	 Add lines 28 and 29.......................................... 	30	
00
	31.	 Qualified solar photovoltaic system–Watts of
		 direct current (DC) ____________ X $3............. 	31	
00	
	32.	 Credit from pass–through entities..................... 	32	
00
	33.	 Add lines 31 and 32.......................................... 	33	
00
	34.	 Enter the larger of line 30 or line 33...................................................... 	34	
00
	35.	 Maximum credit amount........................................................................ 	35	
$500	 00
	36.	 Enter the smaller of line 34 or line 35.......................................................................................... 	36	

00

00

5695–K
41A720–S7 (10–15)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE

*1500030307*

Page 2

Part II–Installation of Energy Efficiency Products (continued)
Multifamily Residential Rental Unit or
Commercial Property:
	37.	 Qualified active solar space–heating system.	37	
00
	38.	 Qualified passive solar space–heating system.	38	
00
	39.	 Qualified combined active solar space–heating
		 and water–heating system................................ 	39	
00	
	40.	 Qualified solar water–heating system.......... 	40	
00
	41.	 Qualified wind turbine or wind machine...... 	41	
00
	42.	 Add lines 37 through 41.................................. 	42	
00
	43.	 Multiply line 42 by 30% (.30)............................. 	43	
00
	44.	 Credit from pass–through entities..................... 	44	
00
	45.	 Add lines 43 and 44......................................... 	45	
00
	46.	 Qualified solar photovoltaic system–Watts of
		 direct current (DC) ____________ X $3............. 	46	
00	
	47.	 Credit from pass–through entities..................... 	47	
00
	48.	 Add lines 46 and 47......................................... 	48	
00
	49.	 Enter the larger of line 45 or line 48......................................................	49	
00
	50.	 Maximum credit amount........................................................................	50	
$1,000	 00
	51.	 Enter the smaller of line 49 or line 50.......................................................................................... 	51	
Commercial Property:
	52.	 Qualified energy–efficient interior lighting
		system............................................................. 	52	
00
	53.	 Multiply line 52 by 30% (.30).......................... 	53	
00
	54.	 Credit from pass–through entities..................... 	54	
00
	55.	 Add lines 53 and 54.......................................... 	55	
00
	56.	 Maximum credit amount................................ 	56	
$500	 00	
	57.	 Enter the smaller of line 55 or line 56...................................................	57	
00
	58.	 Qualified energy–efficient heating, cooling,
		 ventilation or hot water system.................... 	58	
00
	59.	 Multiply line 58 by 30% (.30).......................... 	59	
00
	60.	 Credit from pass–through entities..................... 	60	
00
	61.	 Add lines 59 and 60.......................................... 	61	
00
	62.	 Maximum credit amount................................ 	62	
$500	 00	
	63.	 Enter the smaller of line 61 or line 62................................................... 		63	
00
	64.	 Add lines 57 and 63........................................................................................................................ 	64	
	65.	 Add lines 21, 36, 51 and 64........................................................................................................... 	65	
	66.	 Enter any unused Energy Efficiency Products Tax Credit from the 2014 Form 5695-K,
		 Part II, line 67, if applicable............................................................................................................ 	66	
	67.	 Add lines 65 and 66....................................................................................................................... 	67	

00

00
00
00
00

Enter the amounts from this Form 5695–K on the applicable tax return as follows:
Individual, estate or trust filing:
•	 Form 740–Enter the amount from Line 67 on Form 740, Section A, Line 18.
•	 Form 740–NP–Enter the amount from Line 67 on Form 740–NP, Section A, Line 18.
•	 Form 741–Enter the amount from Line 67 on Form 741, Line 18.
Corporation or pass–through entity filing:
•	 Form 720–Enter the amount from Line 67 on Schedule TCS, Line 16.
•	 Form 720S–Enter the amounts from Lines 6, 12, 18, 36, 36, 51, 51, 57 and 63 on Form 720S, Schedule K, Lines 27, 28, 29, 30, 31,
32, 33, 34 and 35, respectively; and the amount from Line 67 on Schedule TCS, Line 16.
•	 Form 725–Enter the amount from Line 67 on Schedule TCS, Line 16.
•	 Form 765–Enter the amounts from Lines 6, 12, 18, 36, 36, 51, 51, 57 and 63 on Form 765, Schedule K, Lines 28, 29, 30, 31, 32, 33,
34, 35 and 36, respectively; and the amount from Line 67 on Schedule TCS, Line 16.
•	 Form 765–GP–Enter the amounts from Lines 6, 12, 18, 36, 36, 51, 51, 57 and 63 on Form 765–GP, Schedule K, Lines 28, 29, 30,
31, 32, 33, 34, 35 and 36, respectively.
•	 Note: For pass-through entities Lines 36 and 51 are reported twice because they are included on two separate lines of the
Schedule K and subsequently the Schedule K-1. For pass-through entities these credits are passed from Schedule K-1 to a
lower tiered entity’s Form 5695-K. The credit limitation for Line 36 of the higher tiered entity’s Form 5695-K will be entered on
Lines 29 and 32 of the lower tiered entity’s Form 5695-K, and the credit limitation for Line 51 of the higher tiered entity’s Form
5695-K will be entered on Lines 44 and 47 of the lower tiered entity’s Form 5695-K.

5695–K
41A720–S7 (10–15)

INSTRUCTIONS FOR FORM 5695–K

Page 3

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

Purpose of Form—This form is used by a taxpayer to claim a tax
credit for installation of energy efficiency products for residential
and commercial property as provided by KRS 141.436. The
nonrefundable credit shall apply against tax imposed under KRS
141.020 or 141.040, and KRS 141.0401 for taxable years beginning
after December 31, 2008, and before January 1, 2016. An unused
tax credit may be carried forward one year.
PART I – QUALIFICATIONS
The tax credit provided by KRS 141.436 shall apply in the tax year in
which the installation is complete. If the installation was completed
before January 1, 2015, or after December 31, 2015, you do not
qualify for this credit. If you have taken the ENERGY STAR home
or the ENERGY STAR manufactured home tax credit provided by
KRS 141.437, you do not qualify for this credit.
A taxpayer and spouse may each file Form 5695-K, Kentucky Energy
Efficiency Tax Credit, regardless of their filing status, and each of
them may claim up to the maximum credit subject to the limitation
provided for each type of energy efficiency product. However, the
cost of qualified energy efficiency products shall not be claimed
more than once.
PART II – INSTALLATION OF ENERGY EFFICIENCY PRODUCTS
Taxpayer’s Residence or Single–family or Multifamily Residential
Rental Unit:
Line 1—Enter the installed cost of qualified upgraded insulation.
KRS 141.435(15) provides that “upgraded insulation” means
insulation with the following R–value ratings: (a) Attic insulation
rated R–38 or higher; (b) Exterior wall, crawl space, and basement
exterior wall insulation rated R–13 or higher; and (c) Floor insulation
rated R–19 or higher.
Line 2—Enter the amount on Line 1 multiplied by 30 percent (.30).
Line 3—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 27 and from Form 765 or Form 765–GP, Schedule K–1,
Line 28.
Line 4—Enter the total of Lines 2 and 3.
Line 6—Enter the smaller of Line 4 or Line 5.
Line 7—Enter the installed cost of qualified energy–efficient
windows and storm doors. KRS 141.435(8) provides that “energy–
efficient windows and storm doors” means windows and storm
doors that are: (a) ENERGY STAR–labeled; and (b) Certified by the
National Fenestration Rating Council as meeting the North–Central
U.S. climate zone performance standards for U–factor (nonsolar
heat conductance), solar heat gain coefficient, air leakage, visible–
light transmittance, and condensation resistance.
Line 8—Enter the amount on Line 7 multiplied by 30 percent (.30).
Line 9—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 28 and from Form 765 or Form 765–GP, Schedule K–1,
Line 29.
Line 10—Enter the total of Lines 8 and 9.
Line 12—Enter the smaller of Line 10 or Line 11.
Line 13—Enter the installed cost of qualified energy property.
KRS 141.435(12) provides that “qualified energy property” means
the following property that meets the performance, quality, and
certification standards of and that would have been eligible for
the federal tax credit for residential energy property expenditures
under 26 U.S.C. § 25C, as it existed on December 31, 2007: (a) An

electric heat pump water heater; (b) An electric heat pump; (c) A
closed loop geothermal heat pump; (d) An open loop geothermal
heat pump; (e) A direct expansion (DX) geothermal heat pump; (f)
A central air conditioner; (g) A natural gas, propane, or oil furnace
or hot water heater; (h) A hot water boiler including outdoor wood–
fired boiler units; or (i) An advanced main air circulating fan.
Line 14—Enter the amount on Line 13 multiplied by 30 percent (.30).
Line 15—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 29 and from Form 765 or Form 765–GP, Schedule K–1,
Line 30.
Line 16—Enter the total of Lines 14 and 15.
Line 18—Enter the smaller of Line 16 or Line 17.
Line 19—Enter the total of Lines 6, 12, and 18.
Line 21—Enter the smaller of Line 19 or Line 20.
Taxpayer’s Residence or Single–family Residential Rental Unit:
Line 22—Enter the installed cost of a qualified active solar
space–heating system. KRS 141.435(1) provides that “active solar
space–heating system” means a system that: (a) Consists of solar
energy collectors that collect and absorb solar radiation combined
with electric fans or pumps to transfer and distribute that solar
heat; (b) May include an energy storage space–heating system to
provide heat when the sun is not shining; and (c) Is installed by a
certified installer.
Line 23—Enter the installed cost of a qualified passive solar space–
heating system. KRS 141.435(11) provides that “passive solar
space–heating system” means a system that: (a) Takes advantage
of the warmth of the sun through the use of design features such
as large south–facing windows and materials in the floors or walls
that absorb warmth during the day and release that warmth at
night; (b) Includes one or more of the following designs: (i) Direct
gain which stores and slowly releases heat energy collected from
the sun shining directly into the building and warming materials
such as tile or concrete; (ii) Indirect gain which uses materials that
are located between the sun and the living space such as a wall to
hold, store, and release heat; or (iii) Isolated gain which collects
warmer air from an area that is remote from the living space,
such as a sunroom attached to a house, and the warmer air flows
naturally to the rest of the house; and (c) Meets the guidelines and
technical requirements for passive solar design.
Line 24—Enter the installed cost of a qualified combined active solar
space–heating and water–heating system. KRS 141.435(3) provides
that a “combined active solar space–heating and water–heating
system” means a system that meets the requirements of both
an active solar space–heating system and a solar water–heating
system and is installed by a certified installer.
Line 25—Enter the installed cost of a qualified solar water–heating
system. KRS 141.435(14) provides that a “solar water–heating
system” means a system that: (a) Uses solar–thermal energy to
heat water; (b) Is an indirect pressurized glycol system that uses
propylene glycol or an indirect drainback system that uses distilled
water or propylene glycol; (c) Uses OG–100 solar thermal collectors
that are certified by the Solar Rating and Certification Corporation
and covered by a manufacturer’s warranty of not less than five
years; (d) Is installed by a certified installer; and (e) Is warranted
by the certified installer for a period of not less than two years.
Line 26—Enter the installed cost of a qualified wind turbine or
wind machine. KRS 141.435(16) provides that a “wind turbine” or
“wind machine” means a turbine or machine used for generating
electricity that: (a) Is certified as meeting the U.S. Wind Industry

5695–K

INSTRUCTIONS FOR FORM 5695–K

Page 4

41A720–S7 (10–15)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE

Consensus Standards developed by the American Wind Energy
Association in partnership with the U.S. Department of Energy;
(b) Is covered by a manufacturer’s warranty of not less than
five years; (c) Is in compliance with all relevant building codes,
height restriction variances, other special code requirements,
and zoning ordinances; (d) Has been installed in accordance
with all building codes and all permits were received prior to the
start of construction and installation; (e) Is in compliance with all
applicable Federal Aviation Administration regulations; (f) Meets
all requirements of Article 705 of the National Electrical Code for
electrical components and installations; and (g) Is rated and listed
by Underwriters Laboratories.
Line 27—Enter the total of Lines 22 through 26.
Line 28—Enter the amount on Line 27 multiplied by 30 percent (.30).
Line 29—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 30 and from Form 765 or Form 765–GP, Schedule K–1,
Line 31.

Line 44—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 32 and from Form 765 or Form 765–GP, Schedule K–1,
Line 33.
Line 45—Enter the total of Lines 43 and 44.
Line 46—Enter the total watts of direct current (DC) (enter watts
in space provided on this line) of the rated capacity of a qualified
solar photovoltaic system multiplied by $3. See instructions for
Line 31 to determine qualified cost.

Line 47—Enter the total of the amounts from Form 720S, Schedule K–1,
Line 33 and from Form 765 or Form 765–GP, Schedule K–1, Line 34.
Line 48—Enter the total of Lines 46 and 47.
Line 49—Enter the larger of Line 45 or Line 48.
Line 51—Enter the smaller of Line 49 or Line 50.

Line 30—Enter the total of Lines 28 and 29.

Commercial Property:

Line 31—Enter the total watts of direct current (DC) (enter watts
in space provided on this line) of the rated capacity of a qualified
solar photovoltaic system multiplied by $3. KRS 141.435(13)
provides that a “solar photovoltaic system” means a system for
electricity generation that: (a) Includes solar photovoltaic panels,
structural attachments, electric wiring, inverters for converting
direct current output to alternating current, and appropriate
controls and safety measures for output monitoring; (b) Meets
the requirements of Article 690 of the National Electrical Code;
(c) Uses solar photovoltaic panels and inverters that are rated
and listed by Underwriters Laboratories; and (d) Is installed by a
certified installer.

Line 52—Enter the installed cost of a qualified energy–efficient
interior lighting system. KRS 141.435(6) provides that “energy–
efficient interior lighting system” means an interior lighting
system that meets the maximum reduction in lighting power
density requirements for the federal energy efficient commercial
building deduction under 26 U.S.C. § 179D, as in effect December
31, 2007.

Line 32—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 31 and from Form 765 or Form 765–GP, Schedule K–1,
Line 32.
Line 33—Enter the total of Lines 31 and 32.
Line 34—Enter the larger of Line 30 or Line 33.
Line 36—Enter the smaller of Line 34 or Line 35.
Multifamily Residential Rental Unit or Commercial Property:
Line 37—Enter the installed cost of a qualified active solar space–
heating system. See instructions for Line 22 to determine qualified
cost.
Line 38—Enter the installed cost of a qualified passive solar
space–heating system. See instructions for Line 23 to determine
qualified cost.
Line 39—Enter the installed cost of a qualified combined active
solar space–heating and water–heating system. See instructions
for Line 24 to determine qualified cost.
Line 40—Enter the installed cost of a qualified solar water–heating
system. See instructions for Line 25 to determine qualified cost.
Line 41—Enter the installed cost of a qualified wind turbine or wind
machine. See instructions for Line 26 to determine qualified cost.

Line 53—Enter the amount on Line 52 multiplied by 30 percent (.30).
Line 54—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 34 and from Form 765 or Form 765–GP, Schedule K–1,
Line 35.
Line 55—Enter the total of Lines 53 and 54.
Line 57—Enter the smaller of Line 55 or Line 56.
Line 58—Enter the installed cost of a qualified energy–efficient
heating, cooling, ventilation, or hot water system. KRS 141.435(7)
provides that “energy–efficient heating, cooling, ventilation, or hot
water system” means a heating, cooling, ventilation, or hot water
system that meets the requirements for the federal energy–efficient
commercial building deduction under 26 U.S.C. § 179D, as in effect
December 31, 2007.
Line 59—Enter the amount on Line 58 multiplied by 30 percent
(.30).
Line 60—Enter the total of the amounts from Form 720S, Schedule
K–1, Line 35 and from Form 765 or Form 765–GP, Schedule K–1,
Line 36.
Line 61—Enter the total of Lines 59 and 60.
Line 63—Enter the smaller of Line 61 or Line 62.
Line 64—Enter the total of Lines 57 and 63.
Line 65—Enter the total of Lines 21, 36, 51 and 64.

Line 42—Enter the total of Lines 37 through 41.

Line 66—Enter the carryforward balance of any Energy Efficiency
Products Tax Credit earned in 2014, if applicable.

Line 43—Enter the amount on Line 42 multiplied by 30 percent (.30).

Line 67—Enter the total of Lines 65 and 66.