The Emergency Stabilization Act of 2009 extends the tax credit available for the solar-powered energy systems and solar water heating systems. On February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA), which removed a $2,000 cap on the tax credit for solar products. These two bills allow for a 30-percent tax credit on the purchase and installation of Solar Electric Property, residential solar water heating unit, qualified small wind energy, and geothermal heat pump. The tax credit applies to all qualifying property installed and placed in service, on or between January 1, 2009 and December 31, 2016.Under these laws, the VELUX Qualified Sun Tunnels, Solar Blinds andSolar Powered Fresh Air Skylights qualify as "Solar Electric Property" and are eligible for the tax credit!
How to Qualify
To qualify for the credit you will need a receipt for the cost of the product including installation, the date is was placed in service, and the manufacturers certification statement.
The solar blinds manufacturer's certificate can be found HERE.
The sun tunnel skylight manufacturer's certificate can be found HERE.
The Solar Powered "Fresh Air Skylights" manufacturer's certificate can be found HERE.
Tax Time!Fill out 5695 Residential Energy Credit from and submit with your taxes. Enter this tax information and transfer to your 1040 form.
What is the 30% Federal tax credit for skylights?
By installing the VELUX SUN TUNNEL or SOLAR "FRESH AIR" skylight in your primary residence, you may receive a tax credit of 30% on the price of the product, up to $1500. Installation cost is not included. Other products may fit within this cap as well.
What has changed with the Federal Tax Credit?
The American Recovery and Reinvestment Act of 2009 made significant changes to the requirements for skylight tax credits available under the Energy Policy of 2005. The changes include the following:
- Tax credits were extended through 12/31/2016
- Tax credits have been raised from 10% to 30%
- The maximum credit has been changed from $500 to $1500 total (this includes other products as well)
- Energy requirements changed from ENERGY STAR® rated products to products that meet .30/.30 U-factor/SHGC
For more information on the Energy Star tax credit click HERE.
What Velux products meet the new requirements?
January 1, 2009 – May 31, 2009
- All residential VELUX SUN TUNNEL and SOLAR skylight products
June 1, 2009 – December 31, 2016
- TMR 010 0030 – 10”, pitched flashing unit
- TMR 010 1030 – 10”, pitched flashing unit, impact dome
- TMR 014 0030 – 14”, pitched flashing unit
- TMR 014 1030 – 14”, pitched flashing unit, impact dome
- TSS Solar Skylight models
For all other questions, please contact your tax professional.
The tax credit is a direct debit of a taxpayers total tax liability. You can view the form HERE.