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While a new roofing system can be a significant investment for many homeowners, there are many benefits that come along with it! From boosted insulation and functionality to increased curb appeal, home value, and more, a new roof certainly has its advantages. 

One advantage that many people may not realize or take advantage of is the tax credits that can coincide with a new roof installation! In this short guide, RoofPRO will outline some common tax benefits that a new roof can bring to your property. Read on or contact a local tax professional for more information! 

new architectural shingle roof

What is a Tax Credit?

A tax credit is a dollar-for-dollar reduction in the amount you owe for your taxes. Tax credits are often provided in order to promote social goods, like incentivizing adoption, offsetting the cost of caring for dependents, or promoting higher education.  A new roof installation can also trigger some of these benefits! 

Tax Deductions vs. Credits

What’s the difference between tax deductions and tax credits? While they’re quite similar, there is a subtle difference in the way that they help taxpayers when they file their returns. 

As stated above, tax credits are a dollar-for-dollar reduction in the amount that you owe in taxes, while tax deductions simply lower the amount of money that counts as taxable income on your return. For instance, a tax credit of $500 would lower the amount you pay in taxes by $500, while a tax deduction equivalent in value to $500 means that you will pay less in taxes, but not by exactly $500 – it all depends on what you owe overall and the types of taxation you’re subject to.  

Are There Tax Credits for New Roof Replacements?

Homeowners who have recently redone their roofs may wonder whether they qualify for a tax credit for the hefty new investment they’ve made into their homes.  

While there are no tax credits dedicated explicitly to roof replacements, there are some tax credits that you may qualify for if you have installed a new roof on your home – primarily, energy efficiency credits designed to help property owners with the costs of installing or operating energy-efficient fixtures.  

Energy Efficiency Home Improvement Credit

The Energy Efficiency Home Improvement Credit is a federal tax credit dedicated to offsetting the costs of energy-efficient home renovations for homeowners. In terms of roofing, in general, traditional roofing materials are unlikely to qualify. However, metal roofs, solar roofing, and cool asphalt shingles that are Energy Star certified may qualify for the credit! 

Commercial Buildings Energy Efficiency Tax Deduction

The Commercial Buildings Energy Efficiency Tax Deduction is a tax deduction meant for commercial building owners who have made renovations or recently built properties that have 25% less energy consumption than a standard reference building. Said renovations or structures must be certified as planned to reduce energy consumption – a brand new, energy-efficient flat roofing system can help with this! There are also increasing deductions for some buildings that surpass this 25% threshold.  

Solar Investment Tax Credit (for Solar Panels)

The Solar Investment Tax Credit is a tax credit designed to offset the installation costs of a solar panel system to power a property you own. Certain conditions must be met in order to qualify for the credit. For instance, you must own the solar panels and you must not be leasing the system or selling the generated energy to an electricity company. The system must have been installed after 2017, and it must be newly installed or newly in use – this is also a one-time tax credit.  

roof solar panel installation

How Can I Get a Tax Credit for My New Roof in Maryland?

Are you wondering how you can secure one of the above tax credits or a local tax credit for your property in Maryland? There are a few ways that you can get tax credits to offset your roof replacement costs! 

Choose Energy Efficient Roofing Materials

Most tax credits designed for homeowners and commercial property owners incentivize energy efficiency, so choosing energy-efficient roofing materials can be a great way to get a credit when tax season rolls around. Be sure to work with a knowledgeable team of roofing contractors who know the materials, systems, and brands to work with in order to make your exteriors as energy efficient as possible in order to secure the credit. Plus, even without the credit, energy-efficient roofing materials can save you money by reducing energy costs throughout the year. 

Metal Roofing, Cool Asphalt Roofing, or Solar Panels

Not all roofing materials are considered “energy efficient.” The best ones to go with are metal roofing or cool asphalt roofing, which are specially designed with energy efficiency in mind. While you may feel like you’re missing out by not being able to select more traditional materials for your roof, don’t fret – both asphalt and metal roofing systems come in a number of colors and styles that are able to mimic more “classic” roofing systems, like slate or tile! 

Also, as stated above, solar panels come with their own unique tax credits and benefits! Learn more about solar panel tax credits here. 

Research Federal and Local Tax Credits Available

In addition to focusing on energy-efficient materials, it may be a good move to research all of the tax credits that may apply to you. In addition to the ones listed above, there are many home improvement tax credits available in different areas of the country! 

Keep All Your Records and Properly File the Paperwork

An important part of actually receiving the credits for which you qualify is keeping detailed records and properly filing your paperwork. Avoid missing out on major benefits by ensuring you have copies of all paperwork related to these home improvements and submit them on time.  

Submit Your Tax Return

Once the work is done, you can submit your tax return to see whether you qualify for your deductions or credits. Hopefully, you’ll receive a lower amount in the amount of taxes owed, or you may even receive a refund! 

luxury asphalt shingle

RoofPRO is a Trusted Roofing Contractor for Marylanders

Looking for a trusted roofing contractor in Maryland who can help you make improvements to your roof? Look no further! Our professional team can assist you with energy-efficient installations or renovations. Plus, we offer smaller roof repair and maintenance services for more minor problems! Reach out today for more information. 

Top-Rated Residential and Commercial Roofing Solutions

We offer top-rated roofing solutions for both residential and commercial properties. We work with a variety of materials and styles, meaning that we can provide guidance and expertise, no matter what your roofing needs are in Maryland! 

Providing Professional Roofing Services Since 2004

With over two decades of localized experience, our team of contractors is well-versed in roofing and exteriors! Check out our past projects gallery to see some examples of our trusted work. 

Contact Us Today for More Information

Interested in learning more? Contact us today for a free consultation on your next roofing project!