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Tax Benefits of a New Residential Roof

Taxes: the very word is enough to send most people into a state of panic. That’s totally understandable, as filing income taxes isn’t really anyone’s idea of a good time. It’s tedious, it’s time-consuming, and if you end up having to owe anything, it can end up hitting you where it hurts the most: your pocket. 

Try as you might and whether you like it or not, there’s really no way to avoid paying your taxes and April 15 (the filing deadline) gets closer by the minute. As such, there’s really no sense in putting off doing your taxes; you might as well just get it done and over with. If you’ve made any improvements to your home or you’re planning on making them in the future, believe it or not, those projects could actually end up saving you money on your taxes – especially if that home improvement project was a new, energy efficient roof. How? Through tax credits; more specifically, through the Residential Energy Tax Credit. 

Is Roofing Tax Deductible?

Tax credits can help to cut your taxes and get back some of the cash you’ve already shelled out in taxes. The federal government provides tax credits and for homeowners, they’re usually used as an incentive to make certain improvements. Tax credits can be applied to a variety of things, including a new energy efficient roof. If you meet the qualifications, your tax credit will be applied when you file your taxes and will cut your tax liability; in other words, it will reduce the amount you owe. 

Home improvement tax credits are important because they can help to offset the cost of home improvement projects. For instance, if you’re planning on installing a new roof, a home improvement tax credit can help you save money on the cost of the project. Additionally, tax credits can help to increase the energy efficiency of your home, which can help you save money on your energy bills. 

In a nutshell, home improvement tax credits are important because they can help you save money, both on home improvement projects and on the cost of your energy bills. 

What is the Residential Energy Tax Credit?

As discussed above, there are tax credits that homeowners can use when they make energy efficient improvements to their homes. This is known as the residential energy tax credit, and it’s intended to help offset the cost of making upgrades that reduce energy consumption. This tax credit can be applied to various home improvement projects, including energy efficient roofing systems, including metal roofing systems.

What roofing materials qualify for Residential Energy Tax Credits?

The roof tax credit was for Energy Star certified metal and asphalt roofs that had pigmented coatings or cooling granules that were designed to minimize heat gain. These types of roofing materials are designed to reflect more sunlight, which can reduce the surface temperature of a roof by as much as 100 degrees F, and in turn, can reduce the amount of heat that is transferred into the interior of a home. 

The roof tax credit provided 10 percent or $500 of the cost of Energy Star certified roofing materials, minus installation costs. Unfortunately, however, this tax credit expired in 2021, but newly installed energy efficient roofs may be eligible for a residential energy tax credit. It’s essentially two credits in one: the residential energy efficient tax credit and nonbusiness energy property credit. The former can provide you with a 30 percent refund on the cost of home improvement projects and products that use alternative energy and the latter can refund you up to 10 percent on certain energy-efficient upgrades, including roofing. 

In order to claim these credits, the home has to be located in the United States; however, it does not have to be your primary residents. To take advantage of this tax credit, you would need to fill out Form 5695 completing your tax return. 


If you’ve recently installed an energy efficient metal roofing system or you’re thinking about replacing your roof in the near future and you opt for a metal roofing system, you may be eligible for the residential energy credit, which could help to offset the cost of this home improvement project.

Prime Roofing is a roofing contractor in Jacksonville, FL that has been in business for over a decade. Call Prime Roofing at (904) 530-1446 for more roofing advice and residential services!

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