Categories: Windows and Skylights Contractor

Solar Skylight Tax Credits

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Posted On: August 17, 2023
Posted By: Todd Dermody

30% Tax Credit Extended

There's great news for homeowners considering the installation of a skylight: A 30 percent federal tax credit has
been extended to December 31, 2032. Under the credit guidelines, a number of VELUX solar shades and skylights
qualify under "Solar Electric Property" expenditures.

Opening Skylights

A 30 percent federal tax credit applies to both the purchase and installation of some products that fall under the
designation of "renewable technologies," such as solar-electric power.

The VELUX solar-powered Fresh Air Skylights qualify for the tax credit. Thanks to the tax credit, customers can
upgrade to a solar opening skylight for nearly what they would have paid for a fixed, non-opening unit on new
cut-ins. Both the VELUX VSS deck-mount Solar Fresh Air Skylight and the curb-mount version (model VCS) meet the
requirements for this credit. Solar-powered shades for these units also qualify.

Solar Fresh Air Skylights

These solar
units are easy to install and easy to use, as they require no wiring. The solar panel captures all available
daylight to recharge its battery-powered operating system. Direct sunlight is not required. A rain sensor is
included which will automatically close the unit if it remains open during inclement weather.

How Do I Get the Tax Credit?

The federal tax rebate is paid to the homeowner, so the homeowner will need to save receipts for both product costs
and installation charges. Attach your receipts to a completed "Manufacturers Certification Statement" and file it for your records.

The homeowner is the one responsible for filling out and submitting tax forms to the IRS. When it's tax time, fill
out IRS Tax form 5695 and
submit it with your taxes. Enter this tax credit off of form 5695 on your 1040 form (tax forms can be found at
irs.gov.) If you use an online program to file your taxes, it should ask if you made any energy-efficiency retrofits
to your home in the tax year.

(Keep in mind that it's also a good idea to consult a tax professional, and neither Dunn Lumber nor VELUX assume
liability regarding redemption of tax credits.)

Savings Estimates

The images below from
VELUX show example cost and savings for installing various VELUX skylight products that qualify for the 30%
tax credit. Figures will vary depending on your tax credit eligibility and installation costs.

Image of a skylight with the caption: Solar-Powered “Fresh-Air” Skylights with Shades - SAVE $1,244 With Federal Tax Credit. Next to that there are some figures titled “With Tax Credit Savings” and shows: $4082: Estimated Cost for Solar-Powered Skylight and Installation. -$1,224: Save 30% with Federal Tax Credit. $2858: ESTIMATED FINAL COST. $1,224: IN ESTIMATED SAVINGS. To the right, there is a rendering of a child’s bedroom with the skylight installed.
Image of a skylight with the caption: Manual “Fresh Air” Skylight with Factory-Installed Solar Shade - SAVE $978 With Federal Tax Credit. Next to that there are two sets of figures. The first is titled “No Tax Credit Savings without Factory-Installed Solar Shade” and shows: $785: Estimated Cost for Manual “Fresh Air” Skylight. +$2,000: Estimated Installation Cost. $2785: ESTIMATED FINAL COST. $0: IN ESTIMATED SAVINGS. The second is titled “Tax Credit Savings with Factory-Installed Solar Shade” and shows: $3,260: Estimated Cost for Manual “Fresh Air” Skylight with Solar Shade and Installation. -$978: Save 30% with Federal Tax Credit. $2,282: ESTIMATED FINAL COST. $978: IN ESTIMATED SAVINGS.
Image of a skylight with the caption: “Fixed Skylight with Factory-Installed Solar Shade - SAVE $892 With Federal Tax Credit. Next to that there are two sets of figures. The first is titled “No Tax Credit Savings without Factory-Installed Solar Shade” and shows: $497: Estimated Cost for Fixed Skylight. +$2,000: Estimated Installation Cost. $2,497: ESTIMATED FINAL COST. $0: IN ESTIMATED SAVINGS. The second is titled “Tax Credit Savings with Factory-Installed Solar Shade” and shows: $2,972: Estimated Cost for Fixed Skylight with Solar Shade and Installation. -$892: Save 30% with Federal Tax Credit. $2,080: ESTIMATED FINAL COST. $892: IN ESTIMATED SAVINGS.
Image of a sun tunnel with the caption: “Rigid Sun Tunnel with Solar Night Light - SAVE $400 With Federal Tax Credit. Next to that there are two sets of figures. The first is titled “No Tax Credit Savings without Solar Night Light” and shows: $415: Estimated Cost for Rigid Sun Tunnel. +$1,000: Estimated Installation Cost. $1,415: ESTIMATED FINAL COST. $0: IN ESTIMATED SAVINGS. The second is titled “Tax Credit Savings with Solar Night Light” and shows: $1,415: Estimated Cost for Rigid Sun Tunnel with Solar Night Light and Installation. -$435: Save 30% with Federal Tax Credit. $1,015: ESTIMATED FINAL COST. $400: IN ESTIMATED SAVINGS.
Image of a skylight with the caption: Solar-Powered Shades - SAVE $143 With Federal Tax Credit. Next to that there are some figures titled “With Tax Credit Savings” and shows: $475: Estimated Cost for Solar-Powered Shade. -$143: Save 30% Federal Tax Credit. $332: ESTIMATED FINAL COST. $143: IN ESTIMATED SAVINGS. To the right, there is a photo of a kitchen with shaded skylights.

If you have more questions about skylights or you're ready to get your order started, visit our Bellevue, Normandy Park, Lake Union,
or Lynnwood locations to chat with one of
our windows and skylights specialists.