Yes, solar-powered skylights and accessories do qualify for a 30% federal solar tax credit.
The tax credit was originally part of the Emergency Stabilization Act signed into law in 2008 by President George W. Bush and the American Recovery and Reinvestment Act of 2009 signed into law by President Barack Obama. These laws created a 30% tax credit on the purchase and installation of qualifying products in renewable technologies such as solar electric property. The Inflation Reduction Act, passed in August 2022 and signed into law by President Joseph Biden, extended the 30% tax credit to 2032.
Products That Qualify for The Tax Credit
- Solar-powered skylights
- Solar-powered skylight shades
- Solar-powered accessories for skylights and tubular skylights
- Fixed or manual venting skylights installed with solar-powered shades
How Much Can You Save With the Federal Tax Credit?
Essentially, you save 30% of your final installation bill. The estimated tax credit for the product cost and installation of a single solar-powered skylight is an estimated $840, taking the typical installation cost from $2,800 to $1,960.
How to Claim the 30% Tax Credit
When the solar-powered product is installed: Keep your receipts for total price paid (product and installation) attach them to a completed 30% Federal Tax Credit – Manufacturers Certification Statement and keep for your records.
When it is tax time: Fill out IRS Tax Form 5695 and submit it with your taxes. Enter the tax credit from Form 5695 on your 1040 form.
Benefits of Solar-Powered Skylights
Light and Ventilation Control
Solar-powered skylights allow you to have control of your light intake and ventilation by automatically opening your skylight, expelling hot air that rises to the ceiling or by activating your solar powered shades to cut down on the glare caused by the sun.
The best part about solar-powered skylights is that they operate without needing in-house wiring. Each skylight has its own self-contained solar cell that charges internally via the sun. This saves you money on your monthly energy bill as you can sustainably heat and brighten your home without the use of electricity.
The benefit of not needing any electricity to operate your skylight and shades is that it is reliable and can stay operational if your home were to lose power. They are self-sufficient and can close in inclement weather automatically with a rain sensor.