In the solar energy industry at present, Solatube is the ONLY skylight that qualifies for 30% Federal Tax Credit.
As more consumers become aware of environmentally harmful energy-harvesting practices, solar energy has popped up as a possible alternative. After all, the sun is just hanging out in the sky, waiting for us to finally tap into its massive energy stores.
The problem with cleaner resources is that they historically have been costly to install. Since most homes and businesses have been built with traditional energy sources, it can be expensive to convert them over to more sustainable options.
In the 21st century, international governments have made strides to ensure that solar energy becomes more accessible. Although this energy source is not practical for all areas of the country, many states in the US have slowly begun to adopt solar technologies in an effort to help the planet.
What is the ITC?
The United States government enacted the Investment Tax Credit (ITC) as part of its Energy Policy Act of 2005. At its roots, the ITC was designed to foster the growth of the solar energy sector by making it more affordable for home and business owners to convert or build using solar power.
When it was initially passed, the ITC applied to solar-electric systems, fuel cells, and solar water heating systems. In 2008, it was extended to small wind-energy systems and geothermal heat pumps, as well.
The original credit was set to expire at the end of 2016, however, the government extended it after the initial rollout of the program was highly successful. As part of the deal, the ITC applies to both residential and commercial systems, making solar power more accessible to all types of properties.
How Does the ITC Work?
The ITC provides an incentive for new builds to use solar energy as a power source. When it first began, the ITC gave a 30% tax credit on qualified expenditures related to solar energy use on a residential property. As the credit has been extended over the years, the total value of the credit has changed.
Moving forward the credit will work as follows:
Projects in 2021: Any residential or commercial solar projects can claim a credit equal to 22% of the total cost of any qualified systems off their taxes.
Projects in 2022 and Beyond: New commercial solar energy systems can claim a credit equal to 10% of the total cost of any qualified systems off their taxes. There will be no more residential tax credits.
How Solatube® Qualifies for a Federal Tax Credit
As the leader in skylight installation and having set the standard for these products, Solatube® lighting systems qualify for a federal tax credit under the ITC.
To claim the credit, you’ll need your purchase and installation receipts, as well as, a manufacturer’s certification and IRS Form 5695.
Solatube® lights get tax credits for any new construction, renovations, primary, or secondary residences. This means that each time you purchase a new skylight or lighting system, it is eligible for the tax credit. Please note that Solatube® skylights for rental properties will not qualify for the tax credit.
The Benefits of a Solatube® Skylight
Without the ITC, a Solatube® skylight is still a wise investment. Solatube® skylights are the perfect way to introduce natural lighting into your house without knocking down walls or installing expensive windows.
The process of installing these solar systems is much less invasive than traditional skylights and can be done in a fraction of the time. Many installations take less than three hours.
Studies have shown that natural sunlight works wonders for your health. It can boost your energy levels and foster a productive atmosphere. Natural lighting also makes rooms look bigger and lighter, adding to the overall ambience of a home.
Solatube® lighting systems can help promote healthier sleeping patterns by effectively alerting your mind and body to the earth’s timeclock. Increased happiness due to the effects of natural lighting occurs when serotonin is released in the brain. This creates a calming effect that can last into the night, giving you an overall sense of peace.
Given the health benefits of a Solatube® lighting system and the financial help of the Investment Tax Credit, there is all the more reason to consider installing one.
With 20 years of industry experience, The Solar Guys are the premier Solatube® skylight installation experts in the central Florida region. Contact us for an in-home consultation or estimate today!
***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.***