Solar Skylight

[GLJEANNE]

New client spent about 10k installing a solar skylight.  Manufacturer of course told her she could get 30% credit. 

I'd never even heard of a solar skylight before, but after way too much reading, I don't see that it's any different than a regular skylight as far as the energy tax credits go, because it doesn't generate any more energy than what it takes to turn itself from dark to light.  Adds nothing to the overall home energy usage or back to the grid.

Granted, I'm not a building contractor or HVAC person, which we all practically need to be to understand some of these energy credits.

Anyone have more experience with that who disagrees she only gets the $600 max skylight credit?
 

[Lee B]

Manufacturers/Installers are required to give them the relevant documentation as to the credit they qualify for.

 I have had several clients in the past come to me with their tax stuff anticipating a big tax credit, promised by their salesperson.

but they had no documentation. When I had them call the company who did the installation they were told no credit was available.

Of course their salesperson no longer worked there.

[GLJEANNE]

8 minutes ago, Lee B said:

Manufacturers/Installers are required to give them the relevant documentation as to the credit they qualify for.

 I have had several clients in the past come to me with their tax stuff anticipating a big tax credit, promised by their salesperson.

but they had no documentation. When I had them call the company who did the installation they were told no credit was available.

Of course their salesperson no longer worked there.

The certification says they qualify for tax credits, but they don't specify which of the seemingly-endless categories it falls under.  So the sales folks tell them all about the big credit, but they don't know/care if the product really qualifies for it.

[Medlin Software, Dennis]

"Could" is the key.  Means it is fluff, unless the purchaser or their reps can find the method of eligible credit. I "could" win the lottery - but I never play.

[Medlin Software, Dennis]

https://cdn.intelligencebank.com/us/share/M7y7/ObeE/Ledy/original/XUS-20306-Manufacturers-Certification-Flyer-0123

This one is a solar powered skylight, with the manuf certification. I learned something new for sure.

[GLJEANNE]

That's better certification than the one these folks got.  They had Velux solar shades too, so perhaps it does work.  Thanks!

[Medlin Software, Dennis]

10 minutes ago, GLJEANNE said:

That's better certification than the one these folks got.  They had Velux solar shades too, so perhaps it does work.  Thanks!

It must be the use of solar power for operation, likely with some sort of small batt, is the key.

[GLGACCT]

Try this website make sure you pick the right climate zone:

https://www.energystar.gov/most-efficient/me-certified-windows/results?is_most_efficient_filter=Most Efficient

[Sara EA]

So does it get an energy credit or not?  I think not.  Solar just opens and shuts the panel, like the highway signs with the little solar panels powering them.  The Dept of Energy states these are eligible, "Solar PV panels or PV cells (including those used to power an attic fan, but not the fan itself)."  So maybe the cell is eligible but not the skylight.

[GLGACCT]

13 hours ago, Sara EA said:

So does it get an energy credit or not?

It depends on the area of the country and checking the model number to see if it is energy star efficient. Click on the link provided in the previous post above.  Right above filter your results, find your climate zone it will say click here. Enter category, state and county.  Once you know your climate zone it will also provide the energy efficient criteria for that zone.  Next select skylights in this example and look at the brands listed. Once you find the brand, click the link for more info, this brings you to a different website and you will see a list of model numbers and what zones are energy efficient.  You can also go to the manufacturer's website as well.  Some certificates can be printed from the energy star site, others you need to go to the manufacturers site.

 

[TexTaxToo]

19 hours ago, GLGACCT said:

Try this website make sure you pick the right climate zone:

https://www.energystar.gov/most-efficient/me-certified-windows/results?is_most_efficient_filter=Most Efficient

The referenced website is for the 25C credit for Windows and Skylights.  Eligible windows and skylights must be labeled "Energy Star Most Efficient 2023".  However, the requirements for that label changed from Energy Star V6 to Energy Star V7 on October 23, 2023.  Anything manufactured after that date must meet the new requirements (detailed here).   The website only recently removed the old requirements, and it's not clear whether they still list products that meet the old requirements (though they would still qualify for the credit if manufactured before Oct. 23).
 
But this post is asking about the requirements for the 25D Residential Clean Energy credit.  All that is required is:

Quote

an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer.

It appears the manufacturer is saying that the skylight generates electricity which is used to open and close the skylight.

In any case, I don't think tax preparers are required to be experts in efficiency standards, etc.  The instructions for Form 5695 for both credits say that:

Quote

Manufacturer’s certification. For purposes of taking the credit,
you can rely on the manufacturer’s certification, in writing, that a
product is qualifying property for the credit. Don't attach the
certification to your return. Keep it for your records.

So if the taxpayer has a written certification from a reputable manufacturer that the purchase qualifies for a particular credit, that would be enough for me.  The problem arises when a salesman tells them it could qualify for a credit, but they have no documentation.

[GLJEANNE]

On 2/29/2024 at 8:43 PM, Sara EA said:

So does it get an energy credit or not?  I think not.  Solar just opens and shuts the panel, like the highway signs with the little solar panels powering them.  The Dept of Energy states these are eligible, "Solar PV panels or PV cells (including those used to power an attic fan, but not the fan itself)."  So maybe the cell is eligible but not the skylight.

Yeah, based on what she originally gave me from her contractors, which was a vague "we qualify," I had told her not.  But thanks to Dennis' link, her product was one of the ones listed, so she does qualify!  Very happy new client, and me too - except I wasted a lot of time going down the rabbit hole on this one, and on one other client with a somewhat similar situation. 
If the manufacturers are specific on their certification - as they should be - this would be a lot easier.  Although sometimes in the past it's been finding the right line because item A and item B, which seem the same to my non-engineering mind, go in two different parts of the 5695.  Overall, I applaud the idea of these energy credits, but have come to hate dealing with them.