Solar skylights, often equipped with solar-powered ventilation systems or electronic controls, could potentially qualify for the Federal solar tax credit if they are an energy-efficient upgrade to your home and meet the criteria specified by the IRS.
The IRS primarily focuses on solar energy systems that generate electricity or heat water, so the eligibility of solar skylights might depend on their specific features and how they contribute to the home’s overall energy efficiency.
If the solar skylight is part of a larger solar energy system, it’s more likely to be eligible for a 30% solar tax credit. For instance, some solar skylights are designed to work in conjunction with solar panels to improve a home’s overall energy profile.
However, if the skylight is purely for natural lighting and doesn’t generate electricity or contribute to heating water, its eligibility could be questionable.
How To Get Your Tax Credit for Solar Skylights?
To claim a tax credit for eligible skylights, the following steps should be taken:
- Purchase and Install Eligible Products: First and foremost, buy and install a skylight that is eligible for the tax credit, ensuring that this is done before December 31, 2032.
- Maintain Documentation: After installation, keep all of your receipts showing the full cost of the product and installation. You should also secure a completed Manufacturer’s Certification Statement from your installer. Keep these documents in a safe location for your records.
- Complete the Necessary IRS Forms: At tax time, fill out IRS Form 5695, which is designated for Residential Energy Efficient Property Tax Credits. Once completed, include the calculated tax credit amount on your IRS Form 1040 when you submit your tax return.
While IRS Notice 2009-41 suggests you don’t have to attach the Manufacturer’s Certification Statement to your tax return, it’s essential to keep it in your records, along with your receipts. This will be invaluable if you ever get audited.
Lastly, as with all tax-related issues, consult with a tax professional to ensure you meet all the requirements and understand the nuances involved in claiming this credit.
Note that VELUX America LLC, like any other manufacturer, cannot provide specific tax advice and assumes no responsibility for your ability to obtain tax credits.