Tax Credit
Go Solar and Save Big!
Congress Passes Spending Bill with Solar Tax Credit Extensions
Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.) It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it.
Background
On October 3, 2008, President George W. Bush signed into law the Emergency Stabilization Act followed by President Barack Obama signing into law the American Recovery and Reinvestment Act of 2009 (ARRA) on February 17, 2009.
The combined effect of these two laws provides a 30% tax credit on both the purchase and installation of qualifying products in renewable technologies such as solar electric property, residential solar water heating, qualified small wind energy and qualified geothermal heat pump energy, among others.
Under these laws VELUX Solar Powered Fresh Air Skylights, VELUX residential rigid Sun Tunnels with the solar night light, as well as VELUX Solar Powered Blinds qualify under “Solar Electric Property” expenditures when purchased and installed from January 1, 2009 through December 31, 2023.
What do I need to do?
When the product is installed: Keep your receipts for total price paid (product and installation) for one of the qualifying VELUX products and attach them to a completed 30% Federal Tax Credit - Manufacturers Certification Statement and keep for your records.
When it is 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.
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. VELUX America LLC and Skylights Now assumes no liability regarding the homeowner’s ability to obtain tax credits.
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