A new roof isn’t cheap. Depending on the size of your home and the materials you choose, a full roof replacement in the mid-Atlantic region typically runs anywhere from $8,000 to $25,000 or more. So when homeowners ask whether they can get a tax credit for roof replacement, the answer matters, and right now, the answer is more nuanced than ever.
Federal energy tax credits that once rewarded homeowners for installing energy-efficient roofs have undergone major changes. If your roof was installed in 2025, you may still be able to claim significant savings when you file your taxes in 2026. But if you’re planning a new installation this year, the federal landscape has shifted considerably. This guide breaks down exactly what’s available, who qualifies, and what homeowners in Maryland, Pennsylvania, West Virginia, and Northern Virginia should know before making a decision.
The Big 2026 Update: Federal Tax Credits Have Changed
Here’s the bottom line upfront: The two primary federal energy tax credits for homeowners the Energy Efficient Home Improvement Credit (Section 25C) and the Residential Clean Energy Credit (Section 25D) both expired on December 31, 2025.
That doesn’t mean all savings are gone. But it does mean the rules are different depending on when your roof was installed.
If Your Roof Was Installed in 2025
Good news. You can still claim these credits when you file your 2025 federal tax return in 2026:
- The Energy Efficient Home Improvement Credit (25C): Offered 30% of qualifying material costs, up to $1,200 for most improvements. For roofing specifically, only solar roofing tiles and solar shingles qualified — not standard metal or asphalt roofs.
- The Residential Clean Energy Credit (25D): Offered 30% of costs (including installation) for solar roofing tiles and shingles that function as both roofing and solar energy collectors. This credit had no upper dollar cap.
To claim either credit, file IRS Form 5695 with your 2025 tax return. You’ll also need the Qualified Manufacturer Identification Number (QMID) for any specified product placed in service in 2025.
If Your Roof Is Being Installed in 2026
Projects started on or after January 1, 2026, are no longer eligible for the federal energy home improvement credits. The window has closed for standard residential installations. That said, it’s critical to consult a tax professional, as the policy landscape can shift — and state-level incentives remain active.
Is a New Roof Tax Deductible?
This is one of the most common questions homeowners ask and the answer depends heavily on how you use your property.
Primary Residence
If you’re replacing the roof on your primary home, the cost is not tax deductible. The IRS classifies a new roof as a capital home improvement, not a deductible expense. Home improvements increase your property’s value and lifespan, which means they don’t qualify for an annual deduction.
There is one important exception: if part of your home is used exclusively and regularly for business, you may be able to deduct a proportional share of the roof replacement cost. To qualify for the home office deduction, your designated workspace must be:
- Your primary place of conducting business
- A location where you regularly meet clients or customers
- Used regularly and exclusively for business purposes
Rental Property
Rental property owners have more flexibility. A full roof replacement on a rental property cannot be deducted all at once instead, it’s depreciated over time (typically 27.5 years for residential rental properties). However, roof repairs on a rental property are generally deductible as ordinary maintenance expenses in the year they occur.
Understanding the Difference: Tax Deduction vs. Tax Credit
Before diving deeper, it helps to understand how these two types of savings work differently.
- A tax deduction reduces your taxable income. If you’re in the 22% tax bracket and claim a $1,000 deduction, you save $220 on your taxes.
- A tax credit is a dollar-for-dollar reduction of the taxes you owe. A $1,000 tax credit saves you the full $1,000, regardless of your tax bracket. That’s why credits are generally more valuable.
Which Roofs Have Historically Qualified for the New Roof Tax Credit?
Understanding past eligibility is useful both for homeowners claiming 2025 installations and for planning future upgrades.
Important correction from prior guidance: As of 2023, metal roofs with pigmented coatings and asphalt shingles with cooling granules were removed from the list of qualifying materials under the Energy Efficient Home Improvement Credit. This was a correction to the 2023 Form 1040 instructions and remains in effect.
What has qualified (for 2023–2025 installations):
- Solar roofing tiles and solar shingles that function simultaneously as roofing material and solar energy collectors
- These qualify under the Residential Clean Energy Credit (Section 25D) for 30% of costs, including installation
What does not qualify:
- Traditional asphalt shingles
- Standard metal roofing (without solar function)
- Roof decking, rafters, and structural components
- Roofing that provides only structural support without generating energy
Alternative Tax Incentives Worth Knowing About
Even if your roof doesn’t qualify for an energy credit, there are other potential tax benefits to explore.
Casualty Loss Deductions
If your roof was damaged or destroyed by a federally declared disaster — such as a hurricane, flood, tornado, earthquake, or wildfire, you may be able to claim a casualty loss deduction on your federal return. This applies to sudden, unexpected events only. Normal wear and deterioration do not qualify. Check IRS Publication 547 for details and work with a tax professional to document your loss properly.
Business Use of Home
As mentioned above, if your home doubles as your place of business, you may be able to deduct a portion of roof replacement costs proportionate to your business-use square footage.
Section 179D for Commercial Buildings
Business owners and commercial property owners should note that the Energy Efficient Commercial Buildings Deduction (Section 179D) is still active through mid-2026, allowing deductions for energy efficiency improvements to commercial properties.
How to Claim the 2025 Roof Tax Credit (Filing in 2026)
If your qualifying roof was installed before December 31, 2025, here’s how to claim your credit on your 2025 federal return:
- Confirm eligibility. Your roof must consist of solar roofing tiles or solar shingles that both generate electricity and serve as structural roofing material. Confirm the materials meet IRS standards.
- Gather your documentation. Keep all invoices, receipts, manufacturer certifications, and proof of installation dates.
- Obtain your QMID. For products installed in 2025, you’ll need the Qualified Manufacturer Identification Number. Contact your manufacturer if it wasn’t included with your purchase.
- Complete IRS Form 5695. Use Part I for the Residential Clean Energy Credit (30% of qualifying solar roofing costs). Include the credit amount on your Form 1040.
- Consult a tax professional. Given the complexity of the changes in 2025–2026, working with a CPA or enrolled agent can help ensure you capture every dollar you’re owed.
Keep Your Records: Why Documentation Matters
Whether you’re claiming a credit, deduction, or depreciation, detailed records are your best protection. For every roof-related expense, maintain:
- Itemized receipts from your roofing contractor (materials and labor billed separately)
- Manufacturer certifications and product documentation
- Permit records from your local municipality
- Photos of installation
- Your contractor’s license information
In the event of an IRS audit, these records substantiate your claims and protect your tax position.
Should You Still Invest in an Energy-Efficient Roof in 2026?
Even without federal tax credits for new 2026 installations, an energy-efficient roof can still be a smart financial decision. Here’s why:
- Lower energy bills. Reflective and solar roofing materials reduce heat absorption, which cuts cooling costs — especially during mid-Atlantic summers.
- Increased home value. Energy-efficient and solar roofing systems are increasingly attractive to buyers and may increase your home’s resale value.
- State and utility incentives. Maryland, Pennsylvania, Virginia, and West Virginia all have active programs that can offset installation costs — independent of federal credits.
- Long-term durability. Metal and premium roofing systems often outlast standard asphalt by decades, reducing lifecycle replacement costs.
Watch for potential legislative changes as well. Federal energy incentives have been extended and reinstated multiple times in the past. If Congress reauthorizes energy credits, homeowners who have already upgraded will be positioned to benefit from any retroactive provisions.
Final Thoughts
A roof replacement is one of the largest home improvement investments you’ll make. Understanding the tax implications and knowing which credits are still on the table, can make a meaningful difference in your out-of-pocket cost.
For 2026, the key takeaways are:
- 2025 installations can still claim federal energy credits when you file this year — solar roofing tiles and shingles qualify for 30% of costs under Section 25D.
- 2026 installations are no longer eligible for federal energy home improvement credits under current law.
- State programs in Maryland, Pennsylvania, West Virginia, and Northern Virginia remain active and can offer meaningful savings through rebates, SREC programs, property tax exemptions, and utility incentives.
- Consult a tax professional before filing to ensure you’re maximizing available credits and deductions for your specific situation.
Choosing a reputable, experienced roofing contractor is just as important as understanding the tax benefits. A trusted local contractor will help you select materials that maximize both performance and any available incentives and ensure the installation is documented correctly from day one.
This article is for informational purposes only and does not constitute tax or legal advice. Tax laws are subject to change. Consult a qualified tax professional for guidance specific to your situation.
FAQ’s
1. What types of roofs qualify for the 2025 roof replacement tax credit?
Energy-efficient roofs, like metal roofs with pigmented coatings or asphalt shingles with cooling granules, qualify if they meet Energy Star certification standards.
2. How much can I claim for the roof replacement tax credit in 2025?
You can claim 10% of the roofing material costs, up to $500. The credit doesn’t cover installation fees.
3. Do all new roofs qualify for the tax credit in 2025?
No, only energy-efficient roofs qualify for the tax credit. Standard roof replacements don’t qualify.
4. Does the roof replacement tax credit cover installation costs?
No, the credit only applies to roofing materials, not installation.
5. How do I claim the 2025 roof replacement tax credit?
File IRS Form 5695 with your tax return and provide proof that your roof meets energy efficiency standards.
