Save 10% with the Federal Tax Credit

TAKE ADVANTAGE OF THIS LIMITED TIME BENEFIT

Take advantage of a Federal Tax Credit on all your Solatube purchases. Read our list of Frequently Asked Questions below and consult with a tax professional for eligibility requirements.

FAQ About the Federal Tax Credit for Solatube Daylighting Systems

What is the American Taxpayer Relief Act of 2012?

The American Taxpayer Relief Act of 2012 was passed by the U.S. Congress on Jan. 1, 2013. Its purpose was to prevent income tax increases for most Americans and significant federal budget cuts that many feared would negatively affect the nation’s economy. Part of this legislation revived tax credits for skylights, the category Solatube Daylighting Systems fall under, and extended them through Dec. 31, 2013. The new bill provides individual homeowner as well as business tax credits.

What are the individual tax incentives for Solatube Daylighting Systems?
Homeowners can receive a 10% tax credit of the product cost with a maximum deduction of $500. Installation fees are not included. The bill also retroactively allows for installations since the previous expiration date. This means daylighting systems purchased and installed between Jan. 1, 2011, and Dec. 31, 2013, qualify for the tax credit.

What are the business tax incentives for Solatube Daylighting Systems?
Builders and contractors can receive tax credit up to $2,000 for new and renovated energy efficient dwellings. The bill also changes the energy efficiency requirements. Previously, dwellings had to be 50% more energy efficient than homes constructed according to the 2003 International Energy Conservation Code (IECC). The new bill references the 2006 IECC edition as the standard.

Do Solatube Daylighting Systems installed in my second home or rental property qualify?
The installation must be done on an existing home which is your primary residence. New construction and rentals do not qualify.

Are there any limitations on the tax credit?
Yes. The $500 tax credit limit is cumulative, dating back to 2006. That means, if you took previous credits and have already reached the cap, you will not qualify this time around. If you have not made any claims or your previous claims fell below the cap, you may still take credits up to the $500 limit. For example, if you claimed a total of $400 energy efficiency tax credits in the past, you can claim up to another $100 before you reach the cap.

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
  • When it was placed in service
  • Manufacturer Certification Statement

Where can the homeowner get the Solatube Manufacturer Certification Statement?
Click here to download the Solatube Manufacturer Certification Statement.

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 www.dsireusa.org/ the database of State Incentives for Renewables and Efficiency.

*Disclaimer: Solatube International and The Solar Guys are not tax advisors. Taxpayers claiming a tax credit should consult a tax professional with any questions. Solatube International and The Solar Guys are not responsible or liable for the taxpayer’s ability to receive tax credits. This document is not intended to constitute legal or tax advice. More comprehensive information will be made available by the IRS.

The user maintains the full and complete responsibility to comply with all codes, laws and regulations applicable to the safe and proper use, handling and installation of the product and should consult with a professional for all construction and design-related questions. The information contained herein is believed to be accurate as of the time of preparation. However, Solatube International and The Solar Guys make no warranty concerning the accuracy of this information.

Click here to download the Solar Star Manufacturer Certification Statement in .pdf format.

Posted by Chris Teel