The 30-second version
- Velux VSS Solar Powered Fresh-Air Skylights and Velux Solar Blinds qualify for the 30% federal Residential Clean Energy Tax Credit through 2032.
- Qualifying cost: product + installation labor. Not curb work, not roofing repair. Solar Blinds qualify separately.
- Typical LA installed cost: $2,800-$5,200 per unit before credit. Effective cost after 30% credit: $1,960-$3,640.
- Claim on: IRS Form 5695, Residential Clean Energy Credit, filed with your annual return.
Which Velux products qualify
The federal Residential Clean Energy Tax Credit (Section 25D of the tax code, extended through 2032 by the Inflation Reduction Act) provides a 30% tax credit for qualified solar-powered residential products. Velux products in the qualifying category:
- VSS (Solar Powered Fresh-Air Skylight) — deck-mounted venting skylight with integrated solar panel powering the motor. No electrical wiring required to the skylight.
- Solar Blinds — solar-powered interior blinds for any Velux skylight (deck-mounted or curb-mounted). Sold separately or bundled with a skylight order.
- Solar Powered Rain Sensor — auto-close-on-rain feature; qualifies as part of the solar skylight system.
Products that don't qualify: manually-vented (VS), electric-vented (VSE, requires hardwired power), fixed (FS, FCM), and sun tunnels (unless bundled with solar-powered ventilator).
What costs count toward the credit
The credit applies to:
- The solar-powered product itself (VSS skylight, Solar Blinds, Solar Rain Sensor)
- Installation labor for the solar-powered product
- Wiring or additional components required for the solar system to function
The credit does not apply to:
- Curb construction (if adding a curb-mounted skylight)
- Roofing repair or replacement around the skylight
- Interior finishing (drywall, paint, trim) around the skylight opening
- Non-solar components in the same order (regular skylights, non-solar blinds)
Halo Build Co itemizes qualifying vs non-qualifying costs on our invoices so you can hand the qualifying-cost total directly to your tax preparer.
Typical LA installed cost and effective cost
For a VSS Solar Powered Fresh-Air Skylight installed on a standard LA residential home:
- Product cost (M04 size, typical): $1,400-$2,100
- Installation labor (typical deck-mounted): $900-$1,800
- Related solar rain sensor + wiring: $200-$400
- Additional roof work (flashing, weatherproofing): $300-$900 — does not qualify
- Total gross: $2,800-$5,200
- Qualifying for credit: $2,500-$4,300 (excludes non-qualifying roof work)
- 30% credit: $750-$1,290
- Effective cost: $2,050-$3,910
How to actually claim the credit
- Complete the installation and get an itemized invoice from your contractor separating qualifying from non-qualifying costs.
- Keep the manufacturer's Certification Statement (Velux publishes these for VSS and Solar Blinds; your installer can also provide).
- Complete IRS Form 5695 (Residential Energy Credits) with your annual return. The credit goes on Line 5 (Residential Clean Energy Credit).
- Deduct the credit from your total federal tax liability. If the credit exceeds your liability for the year, the balance carries forward to the next year.
Timing considerations
The credit is at 30% through 2032, then steps down (26% in 2033, 22% in 2034, expires after). There's no rush to install in 2026 vs 2027 — the credit rate is stable through 2032. But the incentive is real and worth planning around when a re-roof or skylight upgrade is on your horizon anyway.
Halo Build Co is an authorized Velux dealer. See our Velux skylights page for our installation process, or our Velux skylight buyer's guide for model selection.
Frequently asked questions
Which Velux skylights qualify for the federal tax credit?
Velux VSS Solar Powered Fresh-Air Skylights, Solar Blinds (for any deck-mounted or curb-mounted skylight), and Solar Powered Rain Sensors qualify for the 30% federal Residential Clean Energy Tax Credit through 2032. Manually-vented (VS), electric-vented (VSE), and fixed (FS, FCM) skylights do not qualify.
What percentage of my Velux install can I actually claim?
The qualifying cost is the solar-powered product itself plus its installation labor and any wiring or components required for the solar system to function. Non-qualifying costs include curb construction, general roofing repair around the skylight, and interior finishing. On a typical LA install, qualifying costs are typically 80-90% of the total invoice; your credit is 30% of that qualifying subtotal.
Does the credit reduce state California income tax too?
No — the Residential Clean Energy Credit is a federal tax credit only. California does not currently offer a state-level equivalent. However, California does offer a Property Tax Exclusion for active solar energy systems that may apply to certain solar installations — worth checking with your county assessor for skylight installations tied to broader solar system upgrades.