The new night light is a $75 option for the Solatube light and qualifies both the product and the installation for a 30% federal energy tax credit, a minimum of $217.50 tax credit. The Solar Star Attic Fan also qualifies for the 30% federal energy tax credit, a minimum of $225 tax credit.
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 due or added to the expected tax refund. For example, if your paid $665 for a Solatube 160 ISn with installation, you would earn a $200, or 30%, tax credit, which you would add to your federal tax refund or subtract from the amount you owe.
When were the tax credits established and when do they expire?
Tax credits for residential solar installations were initially created under the Energy Policy Act of 2005, and have been extended several times under other additional acts. In 2015, the credits were extended once again. The 30% tax credit for residential installations extends until the end 2019, and then begins a step down until 2023, after which it will phase out completely.