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corelema
Level 1

Solar Skylight tax credit

Hello!

I'm getting solar installed this year, and I would also like to install some solar skylights. I am trying to figure out if I can do both of them this year and claim the credit on the total cost, OR, if I need to install the skylights next year and hence make 2 different claims (if that's even possible?).

 

A couple of more infos:

- I don't have any solar yet.

- It will be all new systems.

- The contractor installing the PV is different than the contractor who would install the Skylights.

 

Thanks!

 

Also, linking the only thread I found which is close to this subject:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-do-i-claim-a-federal-solar-t...

4 Replies
Opus 17
Level 15

Solar Skylight tax credit

You claim the credit as of the date the property is placed in service, that means installed, inspected, and turned on.  If the skylights are placed in service in a different year than the main PV system, you would claim the credit as of the date each separate device or system is placed in service.

 

There is no requirement in the law to place the different parts in service in the same year, and if you install one device or system in one year and another device or system in the next year, you can claim the credits in both years. 

 

If by solar skylight, you mean skylight that generates a small amount of solar power to open and close itself for ventilation, but is not connected to the power grid and does not provide power to the rest of the house, I am dubious that it actually qualifies for any credit.  If I remember correctly, I researched this a while ago and did not find an absolute written requirement that the solar panel must be connected to the grid, which would suggest that solar skylights are qualified.  However, I would not take my own word for it because I am not your paid professional, and I would not take the word of the installer who is not a tax professional either. You may want to consult with a tax professional in your area.

 

 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
corelema
Level 1

Solar Skylight tax credit

@Opus 17 thanks for your answer!

I'm pretty sure that the solar skylight are eligible, I got some quotes from Solatube and Velux, and they both agreed on that. As mentioned in the thread I linked, Velux has a page which states it explicitly: http://www.veluxusa.com/help/tax-credit

I know it's not a proof that it's legally accurate, but I would be really surprised if they were advertising this for a couple of years if it wasn't true. Also I found a couple of thread with people succeeding in claiming the tax credit for that (even though I know it's still not a legal proof).

 

My question was solely about the possibility to claim both, which you answered clearly, so, thank you!!

AmeliesUncle
Level 13

Solar Skylight tax credit

It technically qualifies for the credit, but NOT the entire cost.  Only the 'extra' cost for the solar qualifies.  For example, if the regular electric window costs $3000 and the solar one costs $3100, you can claim the solar credit on $100.

 

Here is some IRS guidance about it, but referring to a fan, rather than a window:

 

Q-29: Is an expenditure for a solar powered exhaust fan eligible for the § 25D credit?
A-29: Only the component part of a property that actually generates electricity for the dwelling unit is eligible for the § 25D credit. If a solar panel on a fan generates electricity to power the fan for use in the dwelling unit, the cost of the panel component may be eligible for the § 25D credit if all the requirements of § 25D are met; however, the entire cost of the fan is not eligible. Additionally, § 25D(e)(1) specifically allows certain labor costs to be taken into account when calculating the credit. Under this provision, a taxpayer may take into account only the labor costs allocable to the qualifying component when calculating the credit.

 

https://www.irs.gov/pub/irs-drop/n-13-70.pdf#page=11

Opus 17
Level 15

Solar Skylight tax credit

@AmeliesUncle 

@corelema 

 

Thanks, I think that's very clear and certainly applies to the skylight/window as well.

 

Additionally, it occurs to me that the window part of the skylight might qualify for the section 25C credit for energy efficient home improvements, if it is EnergyStar approved.  This credit is 10% of the cost with a maximum of $200 and a $500 lifetime cap, but in 2023 it will be increased to 30% of the cost with a maximum of $600 per year and no lifetime cap.   Installation costs are not eligible, only the cost of the window.  

 

If you can reasonably allocate part of the cost to an EnergyStar approved window, and part of the cost to solar power generation, you might claim both credits, but you can't claim the section 25D solar voltaic credit on the entire cost. 

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