Posted by Allyson Miller on January 10, 2020

Solar Tax Credit Changes in 2020

FEATURED SKYLIGHT INNOVATIONS

If you've been window shopping around VELUX for a bit, you've likely heard or read about our Go Solar option available with some skylights and sun tunnels. And if you've been paying attention, you may have noticed a slight change with the new year.

 

But first things first, for those of you wondering...

 

What is Go Solar?

Go Solar, to put it simply, is a VELUX initiative designed to encourage homeowners to opt for solar-powered skylights and accessories.

 

Of course, the next question usually asked is, "Why Go Solar?"

 

The main reason we're encouraging homeowners to Go Solar is that the Earth could use all the help it can get. And when you choose solar-powered options over electrically powered ones, you've taken one big step in lowering your home's carbon footprint. You take even more steps in the right direction once your skylight is installed and you can exchange artificial light for bright natural light and, in some cases, HVAC for fresh air.

 

The other main incentive to Go Solar is the federal tax credit that comes with installing solar electric property. If you install any of VELUX's Go Solar products during the calendar year, you're eligible to receive a federal tax credit on the cost of the product as well as the entire installation. Talk about a reason to Go Solar!

 

So, What's Changed?

While it would be nice to always be eligible for such a tax credit, the way the laws enacting it were written set an expiration date on it, so to speak.

 

The Emergency Stabilization Act of 2008 and the American Recovery and Investment Act of 2009 allowed for this credit to be applied to solar electric property installed between January 1, 2009, through December 31, 2021.

 

There were a few other stipulations to the credit as well, namely: The acts stated that for the first 10 years (2009-2019), the credit would amount to 30% of the total cost of product and installation of the solar electric property. But for 2020, the credit amount was set to drop to 26%. The credit drops again to 22% in 2021 before going away altogether in 2022.

 

 

So, if you've been on the fence about installing a solar-powered skylight or skylights or sun tunnels with solar-powered accessories, now is the time to act. Schedule a consultation and installation with a skylight installer certified by VELUX before the credit drops again!