Tax Credit Resources

Which Solatube Daylighting System qualifies for the federal income tax credit?

The Solatube 160 ISn and Solatube 290 ISn include an in-tube solar-powered NightLight, qualifying them for a 26% federal income tax credit on purchase and installation.

How much is the federal tax credit?

The federal tax credit on Solatube 160 ISn and Solatube 290 ISn is 26%. This applies to both the purchase and installation of the daylighting system. For example, if the purchase and professional installation of your Solatube 160 ISn totals at $650, you qualify for an income tax credit of $169, reducing your total cost to $481.

How is a tax credit better than an income tax deduction?

Unlike a tax deduction, which reduces your taxable income, a tax credit, on the other hand, is subtracted from the total amount of taxes you owe. The tax credit can also be added to a refund if one is due to you. This makes tax credits extremely desirable.

Is anything excluded from the tax credit?

Decorative Fixtures are included, as they’re an essential part of the system. Add-ons, such as the Ventilation Kit, Daylight Dimmer, and Light Kit are excluded.

What do I need in order to claim the tax credit?

You will need your receipt for purchase and installation, a manufacturer’s certification statement, and IRS Form 5695. Please consult your tax advisor if you have additional questions.

What is the Emergency Stabilization Act of 2009?

On Oct. 3, 2008, George W. Bush signed the Emergency Stabilization Act of 2009, which extended the credits available for solar-powered energy systems and expanded the qualifying product requirements. This allows for a 26% tax credit on the purchase and installation of residential photovoltaic equipment, solar water heating, and fuel cell property. Solar Star products fall under the photovoltaic category.

What Solar Star products are eligible for the federal tax credit?

The solar panel portion of all Solar Star Fans, both roof and interior mount models qualify for the category “solar energy systems: photovoltaic systems” as defined below:

“Property that uses solar energy to generate electricity for the residence and must meet applicable fire and electrical code requirements.”

There are no specific technical requirements for photovoltaic systems. But all installed Solar Star Fans must meet applicable fire and electrical code requirements to qualify.

What are the tax incentives for Solar Star Fans?

Homeowners are eligible for tax credits for qualified photovoltaic systems purchased and installed between Jan. 1, 2009, and Dec. 31, 2019**.

For solar photovoltaic (PV) systems, the allowable tax credit is 26% of the qualified PV system expenditures, including both product and installation costs. For solar-powered fans, both the solar panel portion of the product and the labor costs associated with the installation can qualify for the tax credit.

Is there a cap on the tax credit?

There is no credit cap for residential photovoltaic systems placed into service after Dec. 31, 2008.

Do Solar Star products installed in my second home or rental property qualify?

Existing homes and new construction qualify. Both primary and secondary homes qualify. Rentals do not qualify.

Are the Solar Star DIY kits eligible? 

Yes, Solar Star Fan DIY Kits – both roof and interior mount kits – are eligible as long as they meet the qualifying criteria and all applicable fire and electrical code requirements.

Are Solar Star products eligible even though they aren’t ENERGY STAR^® rated?

An ENERGY STAR rating is not required for the photovoltaic system tax credit eligibility program.

What is the difference between a tax deduction and a tax credit?

A tax deduction is subtracted from income before total tax liability is computed. On the other hand, a tax credit is subtracted directly from the total tax liability.

What does the homeowner need to claim the tax credit?

To qualify, tax payers should retain information that includes:

• Receipt with the cost of the system listed
• Receipt with installation fees listed (applies only to Solar Star Fans)
• Date product was placed in service
• Manufacturer Certification Statement

Where do homeowners go for the IRS form?

Click here for IRS Form 5695, which is available on the IRS.gov website.

Are there local incentives for my county and/or city?

Many local utilities provide financial incentives for energy-efficient products. To find out if rebates or incentives are available in your area, visit the ENERGY STAR rebate finder at www.energystar.gov. For additional information, please visit your state energy office website for specific state tax information or go to http://www.dsireusa.org/ to view the database of State Incentives for Renewables and Efficiency.

Does a product with an ENERGY STAR rating automatically qualify for federal tax credits?

Prior to December 31, 2013, all products with the ENERGY STAR label were eligible for federal tax credits because of their ability to operate efficiently and lower energy bills. After this date, there may be some ENERGY STAR rated products that do not qualify for federal tax credits. To find out for sure, it’s recommended you visit www.irs.gov or consult a tax professional for advice.