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Do You Know About Your Residential Roofing Tax Credit?

Do You Know About Your Residential Roofing Tax Credit? Austin, TXEnergy conservation has been a hot topic for many years, and one of the significant subtopics is reducing the demand for energy to heat and cool homes. Homes that use less energy for climate control place a smaller burden on the power grid, which helps reduce the heat island effect in large cities, save on the natural resources needed to generate the power, and reduces carbon emissions. To encourage homeowners to choose products wisely, the federal government has offered various tax credits over the years. However, many people are not aware that they may qualify for tax credits on certain residential roofing materials.

Do You Know About Your Residential Roofing Tax Credit?

What Are Tax Credits for Roofing Materials Available for Homeowners?

Replacing your roof can represent a sizable outlay of cash, but tax credits can help take a little of the sting out of the costs. Two programs might be of interest to you. You should also know that the Internal Revenue Service typically allows you to amend your returns for up to three years from the date you filed your original return.

1. If you installed a roof that qualifies for an Energy Star rating during the 2017 or 2018 calendar year, you may be eligible for a tax credit. The roof can be either a metal roof with an appropriate pigmented coating or asphalt shingles manufactured with cooling granules. Roof coatings applied by a roof company after the materials are installed do not qualify. Eligible roofs are classified as reflective roofs. The replacement roof must be on your principal residence, so rental properties do not qualify. Also, the tax credit does not apply to new construction. Only the cost of the new roofing materials can be included when calculating the credit. If you qualify, you could receive a tax credit equal to 10% of the cost of materials or a maximum of $500.
2. If you take out a home improvement loan to pay for your replacement roof, you may be eligible to deduct the interest on the loan. To qualify, the loan must be used to pay for a substantial upgrade or improvement that enhances the property’s long-term functionality or its value. If the home is in your name, you are the borrower on the loan, the home is your primary residence, and your home is collateral for the loan, you may qualify.

Licensed roofing companies typically maintain a file of certifications supplied by manufacturers that confirm that a specific product meets the requirements for the roofing tax credit. You are not required to include the document with your return, but it would be wise to obtain a copy for your records.

Even if you do not plan to apply for the tax credit, feel free to contact Alpha Roofing to learn more about cool roofs and the different types of roofs that are now available. Alpha is the roof contractor Austin homeowners know they can trust for exceptional craftsmanship, reasonable prices, and outstanding service. Our residential roofing services include metal roof and asphalt shingle installations, emergency roof repair, attic insulation, siding installation, chimney repair, gutter installation, maintenance programs, flashing, skylight installation, and damage inspections. We offer free quotes, so give us a call at 512-777-1086 or fill out the online form.

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