Tax Credit for Replacing a Roof

If you replaced the roof of your residence in 2010 or 2011, you may be able to collect a credit on your federal income tax return. The credit carries restrictions but if the work qualifies, the process for obtaining the tax credit is relatively simple. Consult with a tax professional with specific tax questions concerning work you have planned or completed on your roof.

  1. Expanded Recovery Act Tax Credits

    • As part of the American Recovery and Reinvestment Act, also known as the stimulus, homeowners are eligible to claim a credit on their 2009, 2010 and 2011 federal income tax returns for making energy-efficient renovations to their existing homes, including roof work. These tax credits are a bonus, in addition to energy savings that result from the renovations. The actual credit for roof work varies depending on other energy other credits claimed by the taxpayer and by other factors, according to the Internal Revenue Service.

    Qualifying Products

    • Only a homeowner's main residence qualifies for the tax credit; second homes, rental homes and new construction are not eligible. Qualified renovations include metal and composition materials that reflect the sun's rays, lowering the temperature on the surface of a slanted roof by up to 100 degrees Fahrenheit. The tax credit does not apply to flat roof surfaces. Taxpayers must apply for the credit by filing form 5695 along with their regular federal income tax return. In addition, taxpayers should obtain a copy of a Manufacturer's Certification Statement for their records as proof that the materials used on their roofs are eligible for the credit.

    Credit for Federal 2009 and 2010 Tax Returns

    • For 2008 and 2009 federal income tax returns, taxpayers may claim up 30 percent of the total cost of materials used for roof renovation or replacement, up to a maximum of $5,000. However, this amount was potentially reduced by credits claimed for other energy-efficient installations or renovation to the same home. All installation on the roof must have been completed no later than December 31 2010 to qualify for the tax credit.

    Credit for Federal 2011 Tax Returns

    • For the 2011 tax year, taxpayers may claim a tax credit of up to 10 percent of the cost of eligible materials on a slanted roof of an existing home, up to a maximum of $500. Just as in prior tax years, only the homeowner's primary existing residence is eligible, and the cost of construction is not included in the credit. All constructi on must be completed by December 31, 2011 to qualify for the credit. The procedure for claiming the credit also remains the same: obtain a Manufacturer's Certification Statement and submit the current year version of form 5695, along with 2012 federal income tax returns.

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