Did you know if you have recently had a Houston roof replacement, you might qualify for special tax credits? These home improvement tax credits can help reduce the amount of taxes you owe for the year. So, check with your tax advisor for specifics to see if your replacement roof qualifies.
What Type of Houston Roof Replacement Qualifies for Tax Credits?
Not every roof is eligible for tax credits. Instead, they generally must meet certain guidelines. For example, the Nonbusiness Energy Property Tax Credit allows you to claim a tax credit for energy efficient roofing materials.
Here’s what qualifies according to the IRS Form 5695, line 18 c.:
“Metal or asphalt roof that meets or exceeds the Energy Star program requirements and has appropriate pigmented coatings or cooling granules which are specifically and primarily designed to reduce the heat gain on your home.”
Therefore, if your recent Houston roof replacement used Energy Star certified cooling materials, then it may qualify for this special tax credit. You can claim up to 10% of the costs for roofing materials, up to $500. However, labor costs from your Houston roofing company don’t apply, which is normal for these types of credits.
Other Helpful Information for Claiming a New Roof on Your Taxes
Once again, it’s important to check with a tax advisor to see if you can claim these costs on your 2020 taxes. If you’re eligible for the tax credit, then you’ll likely need to file the IRS Form 5695. Qualified Houston residential roofing materials will have a certification from the manufacturer. It’s important to keep this certification, but you may not need to attach it to your taxes.
Also the tax credit for your Houston roof replacement is non-refundable. So, you’re not going to see a check for the money. Instead, it’s applied to your taxes to reduce what you pay at the end of the year. If you don’t use the entire credit, then it may carry over to your next year’s taxes.
In addition, the Nonbusiness Energy Property Tax Credit allows you to claim the credit (only once) from 2006 to the expiration date, which has been extended to December 31, 2020. However, you’ll need to weigh the costs of amending previous tax returns versus the credit amount you can claim for your Houston roof replacement.
So, if you’ve replaced your home’s roof recently for a more energy-efficient option, make sure you check with a tax professional to see if you can claim the costs of the roofing materials!
Affordable, Convenient Services from Our Houston Roofing Company
When you need roof repairs or replacement, our team at Paramount Roofing is here for you. We offer budget-friendly options to help you keep your roof and home in great repair. Our goal is your complete satisfaction, which is why we offer free inspections and price quotes as well as a seven year guarantee on labor. Call us today at (713) 748-4000 to earn more and request a free estimate for your roofing project.