Earn a 30% Federal Tax Credit on Skylight Installation (2024)

If you have a room that feels like a cave or are looking for ways to make your home more energy efficient, consider installing skylights. VELUX products and their installation qualify for the 30% federal tax credit on solar property. Continue reading to find out which products qualify and how much your credit could be.

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How much can I save with the federal tax credit?

The estimated tax credit on product and installation of a single VELUX NoLeak Solar Powered “Fresh Air” skylight is an estimated $840, taking the typical installation cost from $2,800 to $1,960.* Costs vary by location.

Which skylight products qualify for the federal tax credit?

Earn a 30% Federal Tax Credit on Skylight Installation (1)

The tax credit was originally part of the Emergency Stabilization Act signed into law in 2008 by President George W. Bush and the American Recovery and Reinvestment Act of 2009 signed into law by President Barack Obama. These laws created a 30% tax credit on the purchase and installation of qualifying products in renewable technologies such as solar electric property. The Inflation Reduction Act, passed in August 2022 and signed into law by President Joseph Biden, extended the 30% tax credit to 2032.

The following VELUX products qualify for the tax credit:

  • Solar-powered fresh air skylights
  • Fixed or manual fresh air air skylights with factory installed solar-powered shades
  • Rigid Sun Tunnel skylights with a pre-installed solar-powered night light
  • Solar-powered shades

Solar-powered skylights with solar shades

Earn a 30% Federal Tax Credit on Skylight Installation (2)

To get the most out of your skylight, we recommend solar-powered skylights with solar shades. These models provide maximum versatility because they not only bring natural light into your home, they also open to create air flow. They’re especially useful in bathrooms and kitchens where moist air and odors can build up.

And best of all, solar-powered skylights are powered by the sun. A small solar panel mounted on the exterior frame charges a battery inside the skylight, allowing it to be opened and closed with a remote control. The skylight also has a rain sensor that triggers the skylight to close when it senses rain.

Add solar-powered shades to your solar skylight for the ultimate in light control. The shades, available in light diffusing and room darkening, have their own solar panel that charges a battery inside the shade cartridge, so you’ll always have power to remotely adjust them.

Fixed or manual “fresh air” skylights with solar shades

Earn a 30% Federal Tax Credit on Skylight Installation (3)

If you’re adding skylights to a room where fresh air isn’t a priority, adding a fixed or manual “fresh air” skylight with factory-installed solar shades and a VELUX ACTIVE with NETATMO Gateway is your best choice. We call it the Go Solar option and it offers dramatic savings with the 30 percent tax credit.

A typical fixed skylight with flashing and installation costs about $1,900. With the federal tax credit, you get the skylight, flashing, shade, VELUX ACTIVE Gateway and installation for approximately $1,330. The VELUX ACTIVE Gateway is free with the Go Solar option and each skylight comes with its own gateway.

With the VELUX ACTIVE Gateway, your skylight shades can be adjusted using the VELUX ACTIVE smartphone app. The gateway also allows you to automate your shades to maximize the light when you want it and minimize it when you don’t.

Already have VELUX skylights? Add solar shades.

Earn a 30% Federal Tax Credit on Skylight Installation (4)

Our solar-powered shades and their installation cost also qualify for the federal tax credit. If you have skylights already installed in your home, consider making them more versatile with shades.

VELUX skylight shades come in more than 50 colors and patterns in light-diffusing or room-darkening options. If you’re looking to add a pop of color above they’re the perfect choice.

Rigid Sun Tunnel skylights with pre-installed solar night light

Earn a 30% Federal Tax Credit on Skylight Installation (5)

If your home needs natural light, but you don’t want a sky view, a Sun Tunnel skylight is the perfect choice. Ideal for any large or small room, these versatile skylights can even provide natural light in closets, hallways and small bathrooms.

With the solar-powered night light you get soft lighting when the sun has set, making them ideal for children’s bathrooms or hallways.

How does it work? The Sun Tunnel lens is mounted on the roof and connects to a diffuser via a highly reflective aluminum tunnel through the attic. Natural light spills into the room below. The night light is mounted inside the tunnel and has a solar panel that charges during the daytime. When it’s dark, it triggers LED lights to illuminate, providing dim light.

Use the Solar Tax Credit Estimator to peek at your potential savings

Learn more about your potential tax credit with our Solar Tax Credit Estimator.* Then find an installer in your area and brighten your home and your wallet at the same time.

* Actual installation costs will vary from these estimates based on common variables in roof construction and shaft construction. Local delivery costs and applicable sales tax not considered for these estimates. These numbers are provided as estimates only.

Earn a 30% Federal Tax Credit on Skylight Installation (2024)

FAQs

Do skylights qualify for federal tax credits? ›

The overall total limit for an efficiency tax credit in one year is $3,200. This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers and central air conditioners.

How does the 30% federal solar tax credit work? ›

How It Works. The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through 2032. The credit percentage rate phases down to 26 percent for property placed in service in 2033 and 22 percent for property placed in service in 2034.

What is the 30% IRS tax credit for biomass stoves? ›

2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit.

How do I know if my windows qualify for tax credit? ›

Windows, Doors, and Skylights - If you replaced any windows, doors, or skylights—or installed new ones that have earned the ENERGY STAR label—you may be eligible for a tax credit of 10 percent of the cost (not including installation) on up to $200 for windows and skylights and up to $500 for doors.

Can you deduct a new roof on federal taxes? ›

If you are replacing the roof of your primary residence, the cost of the new roof is not tax-deductible. The IRS classifies a new roof as a home improvement and considers any expenses related to home improvements on your primary residence as non-deductible.

Are solar-powered skylights worth it? ›

Newer models are significantly more efficient than those from decades past thanks to improved glass coatings and construction, and blinds can add even more insulation and help block heat. Solar-powered skylights and blinds also qualify for federal tax credits, saving money on the cost of the product and installation.

Why am I not getting my full solar tax credit? ›

Ownership: You own the solar PV system. You cannot claim the credit if you are leasing or in an agreement to purchase electricity generated by the system, including a solar power purchase agreement (PPA).

Does the solar tax credit increase my refund? ›

When you purchase solar equipment for your home and have tax liability, you generally can claim a solar tax credit to lower your tax bill. The Residential Clean Energy Credit is non-refundable meaning that it can offset your income tax liability dollar-for-dollar, but any excess credit won't be refunded.

How many years can you roll over a solar tax credit? ›

How many years can I roll over my solar tax credit? You can carry forward your solar tax credit for as many years as you need until 2034, which is when the ITC is scheduled to expire. If you don't have any tax liability this year, and you don't think you'll have any again next year, you can still rest easy.

How does IRS verify solar credit? ›

In conclusion, the IRS verifies solar credits through thorough documentation. Homeowners need to keep receipts and manufacturer certifications for their solar technology installation. The verification process may also involve cross-referencing with approved industry standards.

What qualifies as a biomass stove? ›

Biomass stoves burn biomass fuel to heat a home or heat water. Biomass fuel includes agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

What appliances qualify for energy tax credit IRS? ›

What appliances qualify for energy tax credits? Installing alternative energy equipment in your home such as solar panels, heat pumps, windows, doors and roofing can qualify you for a credit up to 30% of your total cost.

What window shades qualify for federal tax credits? ›

One type of window shade that qualifies for the tax credit is the honeycomb shade. Honeycomb shades are made up of multiple layers of fabric that create air pockets, which trap heat and insulate the window. Hunter Douglas Duette Honeycomb Shades are an example of a honeycomb shade that qualifies for the tax credit.

Are VELUX skylights an ENERGY STAR? ›

VELUX has been ahead of the curve, and intends to stay there. With more than 90% of our production ENERGY STAR qualified in all United States climate zones (see chart below), you can specify our products confidently and proudly.

How do I know if my windows are ENERGY STAR qualified? ›

If purchasing a window, door, or skylight off the shelf, look for the ENERGY STAR label for your climate zone next to the NFRC label on the glass. Official ENERGY STAR label (and NFRC Label) for a window qualifying in the Northern and North-Central climate zones.

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