Under the Emergency Stabilization and American Recovery and Reinvestment Acts, homeowners can receive a 26% federal tax credit on the purchase and installation of home improvement products using renewable energy through December 31, 2021.
Solar Tax Credit Background
Signed into law in 2008 and 2009, respectfully, the Emergency Stabilization Act and the American Recovery and Reinvestment Act (ARRA) allow homeowners to recoup some of the costs of making their property more energy-efficient and environmentally friendly.
The combined effect of the these laws provides up to 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.
Many Colorado Home Cooling & Daylighting products can qualify for a tax credit under these laws, including VELUX Sun Tunnels with the solar night light, QuietCool solar attic fans and vents, and more.
CHC&D eligible Products
Many VELUX products qualify for the 26% Federal Tax Credit under “Solar Electric Property” expenditures when purchased and installed from January 1, 2009 through December 31, 2021.
• VELUX Solar Powered Fresh Air Skylights, and other eligible
• VELUX Skylights with Go Solar
• VELUX residential rigid Sun Tunnel® with the solar night light
• VELUX Solar Powered Blinds
Solar Fans & Vents
Though solar fans and vents are not specifically listed, they can qualify under “Residential & Nonbusiness Energy Efficient Property Credit" when purchased and installed on or before December 31, 2021.
• Solar Inverters
• Solar Attic Fans
• Solar Gable Fans
• Solar Power Vents
Getting solar your 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.
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.