Suppose you’re wondering how to choose a roof that qualifies for tax credits. In that case, the answer lies in selecting energy-efficient materials certified by ENERGY STAR® and recognized under federal programs like the Residential Clean Energy Credit. These materials, such as reflective metal roofs or coated asphalt shingles, must be installed on your primary residence and must come with valid documentation to claim your tax benefits. In this comprehensive guide, we’ll walk you through the essential steps to make a tax-smart roofing decision that can save you money now and in the long run.

Why Tax Credits Exist for Roofing

 

The U.S. federal government introduced tax incentives as part of a broader strategy to reduce carbon emissions, lower energy consumption, and promote sustainability in residential homes. The Residential Clean Energy Credit rewards homeowners for making qualifying energy-efficient improvements, like upgrading their roof.

These credits not only help you save money during tax season but also contribute to:

  • Lower monthly utility bills

  • Increased home value

  • Environmental protection

Knowing the why helps you better understand the how, and that’s what we’ll break down next.

Asphalt and metal roofing materials side by side

What Roofing Materials Qualify for Tax Credits?

 

To qualify, the roof must meet the energy-efficiency criteria outlined by the ENERGY STAR® program. Below are some roof types and features that usually qualify:

Qualifying Roof Types:

  • Metal Roofs with appropriate pigmented coatings to reflect solar energy.

  • Asphalt Roofs that use cooling granules to reduce heat absorption.

  • White Membrane Roofs commonly used in flat or low-slope roofing—some residential versions qualify.

What Makes a Roof “Cool”?

Cool roofs use materials that:

  • Reflect more sunlight

  • Absorb less heat

  • Lower cooling costs by 10–15% or more

Look for:

Step-by-Step Guide to Choosing a Tax-Credit-Eligible Roof

 

Here’s how to ensure your roof meets the IRS requirements for energy tax credits:

  1. Confirm ENERGY STAR Certification
  • Visit energystar.gov to find roofing products approved for residential use.

  • Ask your contractor to provide proof of the product’s certification.

  1. Hire a Knowledgeable Roofing Contractor
  • Choose someone familiar with green building practices.

  • Ask if they’ve installed qualifying roofs before.

  • Hire a roofer with manufacturer-backed certifications for tax-credit-eligible work.

  • This document states that the roofing material qualifies for the federal credit.

  • You’ll need this for IRS documentation, do not skip this step.

  1. Keep Receipts and Separate Costs
  • Save all invoices showing the cost of materials separately from labor.

  • Tax credits apply to materials only.

  1. Understand Current Tax Credit Limits
  • As of recent IRS updates, homeowners may claim 30% of the cost of eligible clean energy improvements, including roofing components.

  • These percentages and limits can change yearly, consult a tax professional to confirm.

  1. Submit IRS Form 5695
  • Attach this form when submitting your annual tax return.

  • You’ll need the total cost of qualifying materials and your certification statement.

Roofer lifting shingles to reveal old roof underneath

Layering Roofs Can Disqualify Your Credit

 

Here’s a critical detail many overlook: installing new roofing materials over an old roof (called “overlaying”) may disqualify you from receiving a tax credit.

The IRS generally expects:

  • A complete tear-off

  • A brand-new application of the qualifying material

Overlaying may also void manufacturer warranties and reduce energy performance making a full replacement a smarter long-term move.

 

Pair with Other Energy-Efficient Upgrades

 

To maximize your savings and energy efficiency, consider bundling your roof replacement with these additional upgrades:

  • Solar Panel Installation: Qualifies for the same Residential Clean Energy Credit; pairing with a cool roof enhances overall energy performance.

  • Upgrade attic insulation to retain indoor comfort and reduce strain on your HVAC system.

 

  • Ventilation Systems: Upgrading attic ventilation can extend your roof’s lifespan and improve airflow.

  • ENERGY-efficient skylights or windows might also be eligible for federal tax credits, depending on the product’s certification and installation.

 

Don’t Miss Local Rebates

 

In addition to federal tax credits, many homeowners qualify for local utility rebates or energy efficiency programs. Check with your power provider, municipality, or state energy office to explore additional savings you may be eligible for.

Helpful resources include:

  • Manufacturer rebate programs

  • Financing options like PACE (Property Assessed Clean Energy)

  • Energy-efficiency upgrade bundles

These programs vary but can significantly reduce upfront costs when layered with federal tax credits.

Worker installing asphalt shingles with nail gun.

 

Common Myths About Roofing Tax Credits

 

Let’s debunk some popular misconceptions:

Myth: All metal roofs qualify.

Fact: Only metal roofs with reflective coatings that meet ENERGY STAR® criteria are recognized by the IRS for tax credit eligibility.

Myth: You cannot deduct the full cost of your roof replacement.

Fact: Tax credits apply only to materials not labor or other installation-related expenses.

Myth: You can apply for the credit even on rental properties.

Fact: The credit is only valid for primary residences, not rentals or second homes.

Conclusion

 

Choosing a roof that qualifies for tax credits is about more than saving money, it’s about making a smarter, greener investment in your home. By selecting ENERGY STAR certified products, working with experienced contractors, and keeping clear records, you can reduce both your tax burden and your long-term utility costs.

The next time you replace your roof, don’t just ask, “Will it protect my home?” Ask, “Will it pay me back?”

 

FAQ

  1. What types of roofing materials qualify for federal tax credits?
     Only specific energy-efficient materials qualify, typically those certified by the ENERGY STAR® program. These include:
  • Metal roofs with pigmented coatings designed to reflect solar energy
  • Asphalt shingles with cooling granules
  • Certain flat roof membranes used in residential applications. The roof must reduce heat gain and meet IRS and ENERGY STAR standards to be eligible.
  1. Does the tax credit cover the full cost of roof installation?
     No. The tax credit usually covers only the cost of qualifying materials, not labor or installation costs. When filing taxes, you’ll need to separate material costs from labor on your receipts to claim the credit accurately.

  2. Can I claim the tax credit if I install the roof myself?
     Yes, you can still claim the tax credit if you do the installation yourself, but you can only claim the cost of the materials, not your time or labor. Be sure to save receipts and obtain a Manufacturer’s Certification Statement for the materials used.

  3. Is a roof installed on a rental property eligible for tax credits?
     No. The roof must be installed on your primary residence to qualify for federal tax credits. Second homes, vacation homes, and rental properties do not qualify under current IRS guidelines.

  4. What paperwork is required to apply for a roofing-related tax credit?
     To successfully claim the credit, you’ll need:
  • The Manufacturer’s Certification Statement
  • Itemized receipts/invoices that separate material and labor costs
  • IRS Form 5695 (Residential Energy Credits), attached to your federal tax return.  Keeping these records is essential in case the IRS requests proof.