Homeowners are eligible to receive a 30% federal tax credit on the purchase and installation of products using renewable energy under the New Inflation Reduction Act.
Solar Tax Credit Background
First signed into law in 2008 and 2009, respectfully, the Emergency Stabilization Act (ESA) and the American Recovery and Reinvestment Act (ARRA) allowed homeowners to recoup some of the costs of making their property more energy-efficient and environmentally friendly. The 2022 Inflation Reduction Act renewed and extended the ESA and ARRA as the Residential Clean Energy Credit.
​
The Residential Clean Energy Credit provides up to 30% of renewable energy product and installation costs via a federal tax credit. Qualifying daylighting products include solar-powered skylights, sun tunnel skylights (with solar nightlight), and solar-powered skylight shades.The 30% Residential Clean Energy Credit expires in 2032
2022-2032
Save 30% federal tax credit
2033
Save 26% federal tax credit
2034
Save 22% federal tax credit
2035
Credit expires
Eligible Daylighting Products
Solar-Powered Skylights
VELUX solar powered "Fresh Air" Skylights marry ample sunshine with a breath of fresh air inside your living spaces.
Sun Tunnels
Sun Tunnels Skylights are a simple and cost-effective way to transform your home with sustainable, natural daylight.
Solar-Powered Shades
VELUX Solar Shades take your skylights to the next level by giving you total control over the amount of light entering your home.
Getting Your Solar Tax Credit
When The Product Is Installed
Make a copy of your receipts for total amount paid for the qualifying products (including installation costs) and attach your receipts to a completed Federal Tax Credit - Manufacturers Certification Statement (if available). Keep another copy for your records.
When Filing Your Taxes
Fill out IRS Tax form 5695 and submit it with your taxes. Enter the tax credit from form 5695 to your 1040 form.
Thing To Keep In Mind:
1. IRS Notice 2009-41 suggests the taxpayer is not required to attach this certification statement to their tax return. However, the taxpayer should retain this certification as part of their tax records.
2. As in all tax matters, the taxpayer is advised to consult their tax professional. All manufacturers assume no liability regarding the ability to obtain federal tax credits.