The Solatube tax credit is gone for anything installed on or after January 1, 2026. Congress repealed both the Residential Clean Energy Credit and the Energy Efficient Home Improvement Credit in the One Big Beautiful Bill Act signed on July 4, 2025, and the cutoff is the date the product was placed in service, not the date you paid.1Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21 If your qualifying Solatube was installed in 2025 or earlier and you haven’t claimed the credit yet, you still can.
Did Your Solatube Actually Qualify
A plain tubular daylighting device that just channels sunlight into a room never qualified on its own. It doesn’t generate electricity and doesn’t meet the thermal standards for a building envelope credit. Eligibility came down to whether your specific model had a solar component or an efficiency certification.
Solar-Powered Models (Section 25D)
The Residential Clean Energy Credit covered property that uses solar energy to generate electricity for your home.2Office of the Law Revision Counsel. 26 USC 25D – Residential Clean Energy Credit Three Solatube product lines met that test:
- Solatube ISn Daylighting Systems (160 ISn and 290 ISn), but only when paired with an integrated Solar Electric Nightlight or Solar-Powered Daylight Dimmer. Without the photovoltaic add-on, the unit did not qualify.
- Solar Star Solar Powered Attic Fans and Garage Fans, which contain an integrated solar panel powering the motor.
- Solatube Solar Operable Skylights, all models, because an integrated solar panel drives the opening mechanism.
This credit could be claimed on a principal residence or a second home, but not a rental-only property.2Office of the Law Revision Counsel. 26 USC 25D – Residential Clean Energy Credit
Non-Solar Skylights (Section 25C)
Non-solar Solatube skylights could qualify under the Energy Efficient Home Improvement Credit as building envelope components, but only if they carried the ENERGY STAR Most Efficient certification for U-factor and Solar Heat Gain Coefficient.3Internal Revenue Service. Energy Efficient Home Improvement Credit Standard ENERGY STAR was not enough. This credit applied only to your principal residence.
What the Credit Is Worth
Both credits are 30% of qualified costs, but the math and the caps are very different.
Solar Products
For qualifying solar Solatube products, the credit is 30% of the cost with no dollar limit, and qualified costs include both the product and the installation labor.4Office of the Law Revision Counsel. 26 US Code 25D – Residential Clean Energy Credit A Solar Operable Skylight installed for $2,500 generates a $750 credit.
Solar Star attic and garage fans work differently. Because only the panel and related electrical components actually produce energy, the IRS limits eligible cost to 70% of the total price. A $1,000 installed Solar Star fan yields a $210 credit: 30% of $700.
This credit is non-refundable, so it can only zero out your tax bill, but any unused amount carries forward to the next year.2Office of the Law Revision Counsel. 26 USC 25D – Residential Clean Energy Credit
Qualifying Non-Solar Skylights
The home improvement credit is also 30%, but two things narrow it. Labor and installation charges for skylights are not eligible; only the product cost counts.5Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements and Residential Clean Energy Property Credits – Energy Efficient Home Improvement Credit – Labor Costs And the credit is capped at $600 per year for windows and skylights combined, inside an overall $1,200 annual cap for building envelope improvements.3Internal Revenue Service. Energy Efficient Home Improvement Credit Any unused amount is lost; it does not carry forward.6Internal Revenue Service. Frequently Asked Questions About Energy Efficient Home Improvements and Residential Clean Energy Property Credits – Energy Efficient Home Improvement Credit – Timing of Credits
How to Claim It Now
Either credit is claimed on IRS Form 5695, Residential Energy Credits, filed with your Form 1040.7Internal Revenue Service. About Form 5695, Residential Energy Credits Solar Solatube costs go in Part I as qualified solar electric property costs on Line 1.8Internal Revenue Service. Instructions for Form 5695 (2025) Non-solar qualifying skylights go in Part II under building envelope components.
For 2025 home improvement credit claims, Form 5695 requires the product’s Qualified Manufacturer Identification Number (QMID), a four-character code found on your receipt or manufacturer documentation.9Internal Revenue Service. 2025 Instructions for Form 5695 – Residential Energy Credits The solar credit does not need a QMID.
If You Missed the Credit in an Earlier Year
Installed a qualifying Solatube in 2024 or earlier and never claimed it? File Form 1040-X to amend that year’s return. You generally have three years from the original filing date, or two years from when you paid the tax, whichever is later.10Internal Revenue Service. Instructions for Form 1040-X A 2023 return filed on April 15, 2024, is amendable through April 15, 2027.
Records to Hold On To
Keep the Manufacturer’s Certification Statement confirming the product qualifies for the credit you’re claiming. Don’t attach it to the return; keep it with your tax records.9Internal Revenue Service. 2025 Instructions for Form 5695 – Residential Energy Credits Save the sales invoice too, with product cost and installation labor itemized separately. The IRS recommends holding these records for at least three years after filing.11Internal Revenue Service. How Long Should I Keep Records?
Rebates Reduce Your Qualified Costs
If you received a utility subsidy for buying or installing the Solatube, subtract it from your eligible costs before applying the 30%, whether the utility paid you or paid the installer. Manufacturer or retailer rebates tied to the product’s price also come off the top.3Internal Revenue Service. Energy Efficient Home Improvement Credit Net metering payments for electricity you sell back to the grid do not reduce your qualified costs.
Effect on Your Home’s Cost Basis
Any credit you claim reduces your home’s adjusted cost basis by the same amount. Claim $750 for a Solar Operable Skylight and your basis drops $750, which can slightly increase the taxable gain when you sell.12Internal Revenue Service. Selling Your Home The home sale exclusion of $250,000 for single filers or $500,000 for joint filers usually absorbs this without any real tax impact, but track it if your expected gain sits near those limits.