As people increasingly focus on eco-friendly practices, getting a new roof presents an excellent opportunity to not only enhance property value but also contribute to a sustainable environment. But what if we told you that you can even get a tax credit for a new roof in the process?
Read on to learn more about how you can capitalize on tax credits for new roofs and for help navigating the complexities of tax credits related to roofing projects.
To learn more or to find out if you can qualify for a tax credit for your roof replacement, contact the experts at Schneider Roofing today. As a leading roofing company in St. Charles and St. Louis, MO, we can answer all of your questions and help make your new roof affordable, including with affordable roof financing options.
What is a Tax Credit?
A tax credit is a financial incentive provided by the government (federal or state) to offset the amount of tax owed by an individual or business. It directly reduces the tax liability, resulting in a lower tax bill.
Tax credits are often offered for specific purposes such as renewable energy, education, residential energy, energy-efficient home improvements, etc.
Does a New Roof Qualify for Tax Credit?
When it comes to tax credits for residential properties, the IRS categorizes your home modifications as "capital improvements." A roof replacement typically doesn’t belong to this category. Nevertheless, there are other ways to potentially receive credits when replacing the roof on your home or business.
For instance, tax credits for your new roof may be offered under certain programs if it is energy efficient or if it meets the energy-upgrade criteria. Make sure to review the eligibility criteria before claiming tax credits. Typically, you can claim up to 10% of the roof cost as credit.
Note: A simple repair of your roof doesn’t qualify. You may need to fully replace the roof to avail of tax benefits.
Types of Tax Credits for Roofing
Here are some programs that offer tax credits for new roofs:
- Commercial Buildings Energy Efficiency Tax Deduction, which provides a tax credit for commercial roof replacements
- Solar Investment Tax Credit, which can be claimed for installing roofs with solar panels that use photovoltaic systems
- Energy Efficiency Home Improvement Credit, which can be claimed for home improvements and energy audits
- Residential Clean Energy Credit (RCE) offers tax benefits for appliances like solar panels, solar-powered heaters, wind turbines, and more
Step-by-step Guide on How to Claim the Tax Credit for a New Roof
If you are hoping to claim a tax credit for your new roof replacement, there are a couple of steps you typically need to follow:
- Choose Energy-Efficient Roofing Materials: Select and install roofing materials that meet the required energy-efficiency standards. For example, metal roofs, cool roofs with asphalt materials, and solar panels.
- Research Federal and State Incentive Programs: Check the official government websites to find out about programs related to new roofs. For homeowners, look for programs like the Residential Energy Efficient Property Credit or Nonbusiness Energy Property Credit.
- Keep Records: Collect all necessary receipts, invoices, certifications, ratings, and documentation related to the roofing project.
- Fill Tax Forms: Fill out the relevant tax forms for claiming tax credits, such as Form 5695 (Residential Energy Credit) or other related forms.
- File Tax Returns: Be sure to include the necessary information regarding your new roof installation on your tax return. Double-check for accuracy, and submit your return on time. Consider consulting with a tax professional to guide you in the process.
Contact Us for New Roof Replacement in St. Charles
Choosing to replace your roof is no simple task, but with the right professionals by your side, the process becomes a breeze! At Schneider Roofing and Remodeling, we are here to guide you in selecting the perfect roof for your home or business. Plus, if you are eligible for a tax credit, we will provide valuable insights during the consultation.
Reach out to us to learn more or request a free quote for your new roof replacement!
