Energy Star

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:

  • Residential solar water heating
  • residential photovoltaic equipment
  • residential fuel cell property

What Solatube products are eligible for the federal tax credit?

Solar Star® Attic Fans, both roof mount and conversion kits, qualify for the category solar energy systems: photovoltaic systems, under the definition below:

“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.

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.

Does the qualifying unit need to be installed in the homeowner’s primary residence?

Unlike other consumer energy tax incentives, the dwelling does not need to be the primary residence (rental properties and second homes are eligible) and applies to both existing homes and new construction.

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?

Use the IRS Form 5695. The 2009 version, which will be available in late 2009 or early 2010.

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 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.

Energy Star Tax Deductions & Certificates

Residential Energy Efficient Property Credit

Our Team of Professionals will be happy to answer any questions you may have regarding potential Rebates, Incentives or Tax Credits.