How do I claim a Federal Solar Tax Credit for purchase of a Velux Energy Performance skylight?

Forum|Forum|6 years ago
February 23, 2020
3 replies
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Form 5695 only allows me 10% deduction (for a maximum of $500), but when I purchased a Velux Skylight I was told it would qualify for a 30% tax credit. I've already added my other exterior doors/windows under the main category, but I can't find anywhere on the form that indicates I can claim the 30% I was told I would get. Thanks

JotikaT2

Employee Tax Expert

I would review the input in the program as follows:

Go to the Federal section
Select "Deductions & Credits"
Scroll through all tax breaks until you see the section titled "Your Home."
To the right of "Home Energy Credits", select revisit
Continue through the screens until you see the following. This is the section you should input your improvement costs in.

Energy credit

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slhtechAuthor

Level 2

Thank you. Ive done that several times. This particular screen doesn't allow for a skylight option and under each "learn more" button, it explicitly states to not include installation/labor costs. We were informed by not only the Velux Skylight supplier, but also our contractor that all of it would get us a 30% tax credit. Ive read thru numerous pages of irs.gov faqs and read all the fine print on the actual 5695 form. It simply doesn't make sense

ThomasM125

Level 15

Per this article from EnergyStar, the credit for skylights is capped at 10% and does not include installation:

https://www.energystar.gov/about/federal_tax_credits/non_business_energy_property_tax_credits

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sholyfield

Level 2

We installed 2 skylights with solar nite lights how do i claim by solar tax credit

DoninGA

Level 15

@sholyfield wrote:

We installed 2 skylights with solar nite lights how do i claim by solar tax credit

Skylights are not eligible for the Residential Energy Efficient Property credit. Only Qualified solar electric property, Qualified solar water heating property, Qualified geothermal heat pump property and Qualified fuel cell property.

wonderwoman1

Level 2

I have entered the total amount of the installation of my Solar Panels. The Solar Company said I would receive $16,000 in a refund but I keep entering the information and it only gives me $6,400. What am I doing wrong?

TomD8

Alumni - Champ

@wonderwoman1

The federal solar tax credit is non-refundable. That means that you will not get a tax refund for the amount of the tax credit that exceeds your tax liability. However, you may carry over any unused amount of tax credit to the following year.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.