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What Roofing Qualifies For Tax Credit?

May 27, 2021
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Do you want to change your home roofing to an energy-efficient roofing option but not sure if it will qualify for the tax credit? Well, you've made the first bold step. Truth be told, many homeowners have fallen into the trap of replacing a new roof and not qualifying for the tax credit. Probably due to omission of a key qualification or other important factors. And what's more saddening is more homeowners will be left in the dark if they don't understand and get the information right.

What Is A Home Improvement Tax Credit?

The tax credit is simply the amount of money that is subtracted from your taxes. This is the reduction of the total amount of tax owed. It is quite different from the tax deduction. A tax deduction reduces the amount of income that the federal government will tax a homeowner.

The United States government founded the tax credit in 2009 to encourage people to change their roofs to impact the economy and create more jobs.

The government gives several tax credits to homeowners as an advantage for owning a property. It is used to counterpoise the amount you spend on repairs and renovations of your home. Please note that the costs of labor and installation are not included in your tax credit calculation

The tax credit is 10% of your roof's total cost, which has been roughly estimated to be $500. The home improvement tax credit can help you save up some funds that can be redirected to other purposes rather than from scratch.

Types Of Tax Credit

Refundable Tax Credit: You get a refundable tax credit if your credit is higher than the tax owed. So, your tax will be deducted from your credit, and you will get the remainder as a tax refund

Non-Refundable Tax Credit: This tax credit can only reduce your debt to zero. But it won't give you any return. Let's assume you owe $300 as tax, and you get a non-refundable tax credit of $500; it will only terminate your $300, but you won't get a refund of $200

What Are The Qualifications And Eligibility For A Tax Credit On Your Roof?

Must be Energy star approved metal roofs or asphalt cooling granules/ pigmented coatings. It is designed to reduce heat in the home. Energy star is a brand backed by the federal government to increase energy efficiency. Using energy-efficient roofing options can help save you an impressive amount of dollars.

Which Metal Roofing Should You Use?

It should be painted with an energy star-certified paint that was developed especially to decrease heat gain. White is usually the most effective, but it doesn't rhyme with some homeowner's color preferences. There are lots of colors you can use for your roofing, so it's not a big deal

Which Asphalt Roofing Should You Use?

Don't use the regular asphalt roofing, instead use the one with cooling granules and pigmented coatings. Using asphalt roofing qualifies you for the tax credit while you observe other measures and qualifications. It can be in a traditional form or a modern form. Both are accepted for the tax credit.

This tax credit has been extended from December 31st, 2017 - to December 2021, so you've got the opportunity to apply for it now.

  • Your asphalt roof must be compliant with Energy star requirements before it can be considered for the tax credit. And it must come with asphalt cooling granules/pigmented coatings. This helps it reflect the sun rays far away from your home instead of consuming it and emitting heat. Your roof must be bought and fixed on your house during the applicable tax year. This starts from January 1st - December 31st of the year.
  • The home must be your primary residence: The home should be where you reside with your family.
  • It must not be a new home, rental, or under construction.
  • The roofs should be reflective. Reflective roofs are roofs that show more sunlight and take in less heat than a standard roof. It is also called cool roofs. It reduces roof temperature and increases the comfort of your home.
  • Roof coatings are not allowed. Your roof should not have extra coatings on it; instead, it should be flexible.

How Do You Apply For A Home Improvement Tax Credit?

  • Find out if your metal roof color is most suitable for the tax credit. The most suitable colors are Bright Red, Charcoal gray, Classic green, Charcoal gray, slate blue, evergreen, light stone, textured black, etc.
  • Get the manufacturer's certification letter: A manufacturer's certification letter is a signed letter created by the roof manufacturer declaring that the roof is qualified for the home improvement tax credit.
  • You should have this for tax records and when applying for a tax credit for your roof.
  • The tax credits are given by the IRS (Inland Revenue Service). You get the credits by using an online form and submit it with your tax returns to the IRS.

As time goes by, Congress might decide to change these rules, add some clauses or remove some. Either way, always stay prepared. Check out the rules and qualifications. Also, find out if there's any special law in your area about roofing and taxation.


If your home is qualified for a tax credit, then go for it. In roof replacement and installation of new shingles,  make sure you follow the qualification principles strictly. Whether you're changing your shingles completely or partial roof replacement and installing new shingles, the key is always to go for a more energy-efficient option. If you have any questions on energy-efficient roofing or roofing tax credits or anytime related to that, contact us at 118-35 Queens Blvd Forest Hills, NY 11375 (718) 414-6067 https://www.nycrenovators.com/.

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