Is there a tax credit for roofs? Yes! If you are replacing or adding a new roof to your home, you could qualify for an energy-efficient home improvement tax credit for as much as 10% of the cost (not counting installation costs). Here’s how to add your roof tax credit to your tax return and the requirements to receive a roof tax credit.
Am I eligible for a roof tax deduction?
This tax credit expired in 2017, but if you were eligible and did not claim it on your 2017 return, you can refile your return to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be for your primary residence (you live here full-time).
- This must not for be a new home or a rental.
- The roofs that are eligible are reflective roofs.
- Roof coatings are not eligible.
- More eligibility requirements can be found here.
How do I apply for a roof tax credit?
- Make sure you’ve saved a copy of the roof Manufacturer’s Certification for your records, but you do not need to file this with your tax return. More details here.
- Consult your tax professional to determine if refiling is your best option.
How much can I claim for a new roof on my tax return?
You can deduct up to 10% of the cost (not including installation costs), up to $500.
Other common questions about roof tax credits:
- Is a roof replacement eligible for a tax credit? Yes, see above for details on how to claim this tax credit.
- Does a new roof qualify for a tax credit? Not for a brand new home, but a replacement roof or roof repairs would qualify on your primary residence. Search for ENERGY STAR-certified roof products here.
- Can roof repairs be used to claim the tax credit? Usually not. The federal government typically considers repairs as current expenses, i.e. those necessary to maintain a property. Replacing a roof, in contrast, is considered a capital improvement and therefore does qualify for the tax credit.
- Are metal roofs eligible for a tax credit? Yes, in certain circumstances. The product must be ENERGY STAR certified. You can learn more here. Tax credit is generally for up to 10% of cost (not counting installation, and with a $500 lifetime limit).
- Does an asphalt roof qualify for the tax credit? Yes. The tax credit is for up to 10% of cost (not counting installation) with a lifetime limit of $500. Find out more here.
- Does the tax credit apply to roof coatings? No.
- Are new roof shingles eligible for a tax credit? If you are replacing your roof, the cost of materials can be claimed as a tax credit to the amount allowed by law. (See above.) If you are simply replacing or repairing certain shingles, that does not qualify for a tax credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Solar panels collect light energy from the sun and convert it into electricity for your home and solar hot water heaters use the sun to provide hot water to your home. Here’s what you need to know to find out if you can qualify for home energy improvement tax credits for installing solar panels or solar hot water heaters. Find out more about how solar energy works on our blog.
Am I eligible for a solar panel installation tax deduction?
- Both primary residences and secondary homes qualify.
- This can be for an existing home or new construction.
- This must not be for a rental home.
- The panels must provide electricity for your home.
- They must meet required fire and electrical codes.
- More eligibility requirements can be found here.
How do I apply for a solar panel tax credit?
- Make sure you’ve saved a copy of the solar panels Manufacturer’s Certification for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2018 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for new solar panels on my tax return?
You can receive a tax credit for a percentage of the cost (not including installation costs) that varies depending on when the system is placed in service.
- 30% for systems placed in service during 2018 or by 12/31/19
- 26% for systems placed in service after 12/31/19 and before 01/01/21
- 22% for systems placed in service after 12/31/20 and before 01/01/22
Other common questions about solar panel tax credits:
Is there an ENERGY STAR label yet for solar panels?
No, solar energy products are not currently eligible to earn the ENERGY STAR label because they do not yet meet the criteria in the ENERGY STAR guiding principles. As solar panels increase in popularity that could change.
Am I eligible for a solar hot water heater tax credit?
- The heater may be installed in your primary residence or a secondary home.
- Existing and new homes qualify; rentals do not.
- At least half the energy generated by the solar hot water heater must come from the sun.
How do I apply for a solar hot water heater tax credit?
- The system must be certified by the Solar Rating and Certification Corporation.
- More eligibility requirements can be found here.
- When you submit your 2018 tax return, file Form 5695 (Residential Energy Credits) here.
How much of a credit can I claim on my tax return for a new solar hot water heater?
You could be eligible for an energy-efficient home improvement tax credit on as much as 30% of the cost, including installation, with no upper limit. But the value of the tax credit is scheduled to decrease over time.
- 30% for systems placed in service during 2018 or by 12/31/19
- 26% for systems placed in service after 12/31/19 and before 01/01/21
- 22% for systems placed in service after 12/31/20 and before 01/01/22
Other common questions about solar hot water heater tax credits:
- Is a solar water heater installed for a swimming pool or hot tub eligible for a tax credit? No.
- Do solar hot water repairs qualify for tax credits? No. They are considered maintenance expenses rather than home improvement expenses and therefore are not eligible.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Replacing old windows, doors and skylights is one way to save on energy costs. Energy-efficient windows, doors and skylights can prevent heat loss in cooler weather and help maintain the cool temperature you want during the warmer months.
Am I eligible for a windows, doors and/or skylights tax credit?
This tax credit expired in 2017, but if you were eligible and did not claim it on your 2017 return, you can refile your return to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be for your primary residence (you live here full-time).
- This must not be for a new home or a rental.
- The replacement windows, doors or skylights must be ENERGY STAR-certified products.
- More eligibility requirements can be found here.
How do I apply for a windows, doors and/or skylights tax credit?
Consult your tax professional to determine if refiling is your best option.
How much can I claim for a new windows, doors and/or skylights on my tax return?
- You could be eligible for an energy-efficient home improvement tax credit of up to 10% of the cost (not including installation).
- There is a $200 cap on windows.
Other common questions about windows, doors and/or skylights tax credits:
- Do I have to replace all the windows, doors or skylights to qualify for the tax credit? No. You can replace any amount of windows, doors or skylights and still qualify as long as they are ENERGY STAR certified.
- Do only replacements count for a tax credit? No. Installing a new window where there wasn’t one previously (such as in an addition) also can qualify for the home energy improvement tax credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
If you want to learn more about insulating your home, check out our Home Energy Savings series on attic insulation. In addition, products that reduce air leaks can also qualify if they follow certain criteria.
Am I eligible for an insulation tax credit?
This tax credit expired in 2017, but if you were eligible and did not claim it on your 2017 return, you can refile your return to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be your primary residence (you live here full-time).
- This must not be a new home or a rental.
- Bulk insulation products such as batts, spray foam insulation and rolls are typically covered.
- The credit can apply to replacing or improving insulation, but its primary purpose must be to insulate.
- You must have a copy of the Manufacturer’s Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for an insulation tax credit?
Consult your tax professional to determine if refiling is your best option.
How much of a tax credit can I claim for insulation?
Ten percent of the cost (not including installation), up to $500
Other common questions about insulation tax credits:
Do air sealing products also qualify for a tax credit?
Products that reduce air leaks can also qualify, as long as they come with a Manufacturer’s Certification Statement. These include:
- Weather stripping
- Spray foam in a can, designed to air seal
- Caulk designed to air seal
- House wrap
Can I install the insulation or air sealing products myself and get the insulation tax credit?
Yes, you can install the products yourself and still qualify for the credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Biomass stoves burn plant-derived fuel, such as wood and wood waste like wood pellets, as well as grasses.
Am I eligible for a biomass stove tax credit?
This tax credit expired in 2017, but if you were eligible and did not claim it on your 2017 return, you can refile your return to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here full-time).
- It cannot be used for a new home or a rental.
- The stoves must be used for heat or water heating and have a thermal efficiency rating of at least 75% as measured using a lower heating value.
- You must have a copy of the Manufacturer’s Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a biomass stove tax credit?
Consult your tax professional to determine if refiliing is the best option for you.
How much can I claim for a biomass stove on my tax return?
You can receive a $300 energy efficient home improvement tax credit for purchasing a biomass stove.
Other common questions about biomass stove tax credits:
- What should a retailer provide me when I buy a biomass stove to get the tax credit? Retailers should give you the Manufacturer’s Certification Statement for the model you purchase. This is a signed statement from the manufacturer certifying that the stove qualifies for the tax credit. Manufacturers often have these on their websites if you did not get one when you bought the stove. Be sure the Certification Statement matches the model number of your biomass stove.
- What does the IRS consider to be biomass fuel? The IRS defines biomass fuel as “any plant-derived fuel available on a renewable or recurring basis.”
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Replacing antiquated central air conditioners or adding central air conditioners could qualify you for a federal tax credit. Find out more here.
Am I eligible for a central air conditioner tax credit?
This tax credit expired in 2017, but if you were eligible and did not claim it on your 2017 return, you can refile your return to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here full-time).
- It cannot be used for a new home or a rental.
- The air conditioner does not have to be replacing an old air conditioner to qualify.
- The air conditioner must be ENERGY STAR certified to qualify for the home energy improvement tax credit.
- More eligibility requirements can be found here.
How do I apply for a central air conditioner tax credit?
Contact your tax professional to determine if refiling is the best option for you.
How much can I claim for a central air conditioner on my tax return?
You are eligible for a $300 home improvement tax credit if you replace or install central air conditioning.
Other common questions about central air conditioner tax credits:
- Do I have to replace both heating and central air to qualify? No, you do not have to replace both your heating and air conditioning in theory. Practically speaking, however, you may have to replace both for the air conditioner to qualify. Most central air conditioners will only qualify for the tax credit if you also replace the air moving device that pushes the cool air through the duct system, and this is typically part of the heating system, too.
- Is there a tax credit for window air conditioning units? No, only central air conditioners are eligible.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Unlike their solar counterparts, non-solar water heaters operate on natural gas, propane or electricity. Here’s what you need to know to see if your water heater qualifies for a federal tax credit.
Am I eligible for a non-solar water heater tax credit?
This tax credit expired in 2017, but if you were eligible and did not claim it on your 2017 return, you can refile your return to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here full-time).
- It cannot be used for a new home or a rental.
- The water heater must be ENERGY STAR certified to qualify for the home energy improvement tax credit.
- More eligibility requirements can be found here.
How do I apply for a non-solar water heater tax credit?
Contact your tax professional to determine if refiling is right for you.
How much can I claim for a non-solar water heater on my tax return?
- You are eligible for a $300 home improvement tax credit if you replace your non-solar water heater with a more energy-efficient model.
- Electric heat pump water heaters qualify for the home improvement tax credit only if they have an energy factor of at least 2.
- Gas, oil or propane hot water heaters must have an energy factor of at least .82 or thermal efficiency of at least 90%.
- More eligibility requirements can be found here.
Another common question about non-solar water heater tax credits:
- Does it matter what fuel my water heater uses to get the tax credit? Water heaters that run on gas, propane or electricity are all potentially eligible as long as they meet other tax credit requirements.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Geothermal heat pumps are similar to ordinary heat pumps, except for this one major difference: they use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. They use the Earth’s natural heat, making them among the most efficient and comfortable heating and cooling technologies currently available.
Am I eligible for a geothermal heat pump tax credit?
- Both primary residences and secondary home qualify.
- It can be used for an existing home or new construction.
- All ENERGY STAR-qualified geothermal heat pumps are eligible for the tax credit.
- More eligibility requirements can be found here.
How do I apply for a geothermal heat pump tax credit?
When you submit your 2018 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a geothermal heat pump on my tax return?
Installing a geothermal heat pump in your home could entitle you to a federal tax credit of up to 30% of the cost, including installation, with no upper limit. However, the percentage of the cost you can claim varies depending on when the system is placed in service.
- 30% for systems placed in service during 2018 or by 12/31/19
- 26% for systems placed in service after 12/31/19 and before 01/01/21
- 22% for systems placed in service after 12/31/20 and before 01/01/22
Other common questions about geothermal heat pump tax credits:
- Does a geothermal heat pump have to include water heating to qualify for the federal tax credit? No, it does not. That requirement was eliminated in December 2009.
- Is there a tax credit for water-to-water geothermal heat pumps? Yes, water-to-water geothermal heat pumps can qualify for the tax credit. The geothermal heat pump tax credit is for 30% of the cost of the product (plus installation costs) with no upper limit, but that percentage changes at the end of 2019 (see above).
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Wind turbines essentially collect kinetic energy from the wind and then convert it into electricity.
Am I eligible for a small wind turbines tax credit?
- Both primary residences and secondary homes are eligible.
- It can be used for an existing home or new construction.
- Rentals are not eligible.
- To be eligible for the credit, the turbine must have a nameplate capacity of no more than 100 kilowatts.
- More eligibility requirements can be found here.
How do I apply for a small wind turbines tax credit?
When you submit your 2018 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a small wind turbine on my tax return?
You can qualify for 30% of the cost (including installation), but that percentage is set to decline for turbines installed after 2019:
- 30% for systems placed in service during 2018 or by 12/31/19
- 26% for systems placed in service after 12/31/19 and before 01/01/21
- 22% for systems placed in service after 12/31/20 and before 01/01/22
Discover more home improvement tax credits and energy-efficient appliance rebates:
Tax Rebates | Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Biomass Heaters | Air Conditioning | Water Heaters | Wind Turbines | Geothermal Heating
Like federal tax credits, rebates are incentives for consumers — this time from manufacturers and/or power companies rather than the federal government — to upgrade antiquated and likely less energy efficient appliances with newer models that operate more efficiently. Unlike tax credits, rebates are actual cash — eventually. Yes, some paperwork is required. You generally need to show proof of purchase and model numbers (depending on the type of rebate), but then if all matches up, your rebate will be mailed to your home from either the participating manufacturer or energy company.
What types of appliances qualify for rebates?
While the list changes regularly as manufacturers and power companies offer different options, generally the following appliances qualify for rebates on a fairly regular basis:
How do I find out which energy-efficient appliance rebates are available?
While there are a multitude of ways you can discover rebates, the easiest way is to visit ENERGY STAR®’s rebate center and type in your ZIP code. This government agency keeps track of rebates for energy-efficient appliances from a variety of resources, making it your one-stop appliance rebate shop. Typing in 06019, for instance, yielded 23 rebate opportunities, ranging from a $750 rebate for replacing a boiler to $250 for an air-source heat pump from Eversource, a utility in Connecticut. The rebates change regularly, so it’s worth checking the site when you're considering replacing or buying an appliance.
It’s worth noting that in some instances an energy-efficient appliance might qualify for both a rebate and a tax credit. That could be a win-win for you and the environment!