Solatube® Daylighting Systems Frequently Asked Questions About Federal Tax Credits for the American Recovery and Reinvestment Tax Act of 2009 UPDATED June 2009: How has the new Stimulus Bill affected the tax credits for energy-efficient home improvements? On February 17, 2009, President Obama signed the "Stimulus Bill" (The American Recovery and Reinvestment Act of 2009) that made significant changes to the energy efficiency tax credits made available under the Energy Policy Act of 2005. These changes apply to products "placed in service" in 2009. The highlights are: The tax credits that were previously effective for 2009, have been extended to 2010. The tax credit has been raised from 10% to 30%. The tax credits that were for a specific dollar amount, have been converted to 30% of the cost. The maximum credit has been raised from $500 to $1,500 total for the two year period (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum. Source: www.energystar.gov/taxcredit

How does this affect the credit for Solatube Daylighting Systems?
There are two distinct time periods and corresponding performance requirements for the 2009-2010 Federal Tax Credit. In the period from January 1, 2009 through May 31, 2009, skylight products that meet the ENERGY STAR requirements for performance are eligible for the 30% tax credit.

As of June 1, 2009 all skylight products must meet U-factor and Solar Heat Gain Coefficient (SHGC) maxima of 0.30.

What Solatube products are eligible for the federal tax credit?
January 1, 2009 through May 31, 2009: Solatube Brighten Up® Series; 160 DS and 290 DS Daylighting Systems are ENERGY STAR rated and eligible. This includes dome, inner dome, flashing, diffuser, effect lens, and any additional tubing required.

June 1, 2009 through December 31, 2010: Solatube Brighten Up® Series; 160 DSe and 290 DSe Daylighting Systems qualify for the federal income tax credit allowed under the Internal Revenue Code, Section 25C. This includes dome, inner dome, flashing, thermal insulation panel, diffuser, effect lens, and any additional tubing required.

How much money will I receive for installing Solatube products in my home?
By installing eligible Solatube products, you may receive a tax credit of 30% of the product cost of each Solatube Daylighting System, up to $1,500. Installation cost is not included. The maximum amount of homeowner credit for all improvements combined (including roofing, insulation, HVAC, and water heaters) is $1,500 during 2009 and 2010.

If an accessory item is installed with the Daylighting System, i.e. Ventilation Add-On Kit, is the cost of the accessory eligible for the federal tax credit?
Accessory items may be eligible. Consult a tax professional.

Do products installed in my second home or rental property qualify?
Products must be installed in the taxpayer’s primary residence to be eligible.

What if I am building a new home?
The tax credit for these products is ONLY available for existing homes. If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters.

Under which category can I find Solatube products?
Solatube International products fall under the category of tax credits for windows, doors and skylights.

What documentation do I need to provide to receive the tax credit?
You need to fill out IRS Form 5695. In addition to this form, save the following:

• Purchase receipts
• Appropriate Manufacturer’s Certification Statement
  

Additional resources may also be available on the ENERGY STAR web site: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

Click here for IRS Form 5695.

Do I need to attach a copy of this documentation to my tax return?
The taxpayer is not required to attach the invoice or the Manufacturer’s Certification Statement to the tax return on which the credit is claimed. However, the tax accountant may require the document to validate the tax credit claim, and the taxpayer must retain the proof of purchase and installation along with the Manufacturer’s Certification Statement in the event of a tax audit.

Are there local incentives for my county and/or city?
Many local utilities provide financial incentives for purchasing ENERGY STAR qualified skylights. To find out if rebates or incentives are available in your area, visit the ENERGY STAR rebate finder at www.energystar.gov

For additional information please visit your state energy office website and local utility company’s website for specific state and local tax information or go to http://www.dsireusa.org the database of State Incentives for Renewables and Efficiency.

Solar Star® Attic Fans Frequently Asked Questions About the Federal Tax Credit for Residential Solar Energy Systems: Photovoltaic Systems What is the Emergency Stabilization Act of 2009? On October 3, 2008, George W. Bush signed the Emergency Stabilization Act of 2009, which extended the credits available for solar-powered energy systems and expanded the qualifying product requirements. This allows for a 30-percent tax credit on the purchase and installation of residential solar water heating, photovoltaic equipment, and fuel cell property.

Essentially, this means there are three main areas of 30% tax credit available:

“Property that uses solar energy to generate electricity for the residence and must meet applicable fire and electrical code requirements.

There are no specific technical requirements for photovoltaic systems. But all installed Solar Star Attic Fans must meet applicable fire and electrical code requirements to qualify.

What Solatube products are not eligible for the photovoltaic systems tax credit? 
The following products do not qualify for this tax credit:

• Solatube Brighten Up® Series; 160 DS and 290 DS Daylighting Systems
• Solatube SolaMaster® Series; 330 DS and 750 DS Daylighting Systems
• Light Add-on Kit
• Ventilation Add-on Kit
• Daylight Dimmer™

What are the tax incentives for Solar Star Attic Fans?
Homeowners are eligible for tax credits for qualified photovoltaic systems purchased and installed between January 1, 2009 and December 31, 2016*.

What is the amount of the tax credit the homeowner is eligible to receive?
For solar photovoltaic (PV) systems, the allowable tax credit is 30% of the qualified PV system expenditures, including both product and installation costs. For solar powered attic fans, the solar panel portion of the product and the labor costs associated with the installation can qualify for the tax credit.

What is the maximum amount of cost on which the credit can be figured?
There is no credit cap for residential photovoltaic (PV) systems placed into service after December 31, 2008.

Do products installed in my second home or rental property qualify?
Existing homes & new construction qualify. Both a primary residence and second homes qualify. Rentals do not qualify.

What is the difference between a tax deduction and a tax credit?
A tax deduction is subtracted from income before total tax liability is computed. On the other hand, a tax credit is subtracted directly from the total tax liability.

What does the homeowner need to claim the tax credit?
To qualify, tax payers should retain information that includes:

• Receipt with the cost of the system (including labor)
• When it was placed in service
• Manufacturer Certification Statement

Are the Solar Star DIY kits eligible? 
Yes, Solar Star Attic Fan DIY Kits – both roof mount and conversion kits – are eligible, as long as they meet the qualifying criteria and all applicable fire and electrical code requirements.

Are Solar Star products eligible even though they aren’t ENERGY STAR® rated?
An ENERGY STAR® rating is not required for the photovoltaic system tax credit eligibility program.

Where do homeowners go for the IRS form?
Click here for  IRS Form 5695, available on the IRS.gov website. 

Are there local incentives for my county and/or city?
Many local utilities provide financial incentives for energy-efficient products. To find out if rebates or incentives are available in your area, visit the ENERGY STAR rebate finder at www.energystar.gov.

For additional information please visit your state energy office website for specific state tax information or go to http://www.dsireusa.org/ the database of State Incentives for Renewables and Efficiency.

*Solatube International makes no warranty as to the qualification of the products for federal tax credits if there are changes in requirements or applicable law after such date.

Solatube International, Inc. is not a tax advisor. Taxpayers claiming a tax credit should consult a tax professional with any questions. Solatube International is 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.

The user maintains the full and complete responsibility to comply with all codes, laws and regulations applicable to the safe and proper use, handling and installation of the product and should consult with a professional for all construction and design related questions. The information contained herein is believed to be accurate as of the time of preparation. However, Solatube International makes no warranty as to the accuracy of this information.
Update if necessary.