A roofing tax credit is a credit given to homeowners who install a new, more energy-efficient roof on their home. The United States has instituted a federal roofing tax credit, which encourages homeowners to re-roof with Energy Star products. The tax credit program was aimed to create jobs in the construction industry, while also reducing electricity costs for homeowners.
A tax credit is an amount that a taxpayer can deduct from the amount owed at tax time. The amount of a roofing tax credit may vary but is generally a portion of the total cost spent on re-roofing, with a maximum limit on the amount to be paid out. Roofing credits are only available for a taxpayer's principal residence and cannot be applied to new construction or rental properties.
Only Energy Star products qualify for the roofing tax credit. The Energy Star program is an international distinction that is awarded to energy efficient products and appliances. It is generally awarded to the top 25 percent of energy-efficient products in different categories.
Only certain roofing materials qualify for tax credits. The two main types of eligible roofing materials are metal roofs with pigmented coating and asphalt roofs with cooling granules. These materials must also meet other Energy Star requirements, and it is best to check these requirements when choosing materials.
The goal of a roofing tax credit is to encourage homeowners to use roofing products that reflect as much sunlight as possible. This greatly diminishes the temperature of the roof's surface, which lowers the amount of heat within the home. This, in turn, reduces the need for air conditioning within the home, lowering electricity costs for the homeowner. It also reduces strain on a community's power supply.
Applying for a roofing tax credit requires submitting the appropriate forms when filing yearly taxes. It is necessary to show receipts for the installation and proof of the energy efficiency of the materials used. The laws related to roofing tax credits do change, so it is important to be up to date with the rules and regulations when considering re-roofing and applying for a credit.
One of the key purposes of the roofing tax credit is to create so-called "green collar" jobs. These jobs, which are in environmentally-friendly industries, are considered an important element in developing green technology. Jobs created by programs such as re-roofing also allow low-skill workers, such as construction workers, to find employment in new industries by transferring skills into green technology.