On July 4, 2005, at 1215 eastern daylight time, an amateur-built Atlantis airplane, N98Y, was substantially damaged when it impacted power lines, and then the ground during climbout from Sky Manor Airport (N40), Pittstown, New Jersey. The certificated private pilot received serious injuries. Visual meteorological conditions prevailed, and no flight plan was filed for the local personal flight conducted under 14 CFR Part 91. A witness, who was also a pilot, observed the airplane during its takeoff from runway 7. As the airplane reached approximately the mid-point of runway 7, he observed the left wing strike the runway. The airplane's canopy then appeared to open, and the pilot attempted to grab it with one hand. The witness heard a reduction in power, and then an increase in power as the airplane continued its takeoff. As the airplane reached about 800 feet, it initiated a turn to the left to avoid power lines. The witness then lost sight of the airplane behind a tree line. According to a Federal Aviation Administration (FAA) inspector, the airplane struck power lines as it was returning to the airport, immediately after takeoff. The airplane then impacted the ground at the base of the power lines. Examination of the airplane revealed no mechanical deficiencies. The pilot reported that he had no memory of the accident. He also reported 550 hours of total flight experience, 40 of which were in make and model.