Metal roofs have benefits regarding longevity, appearance, and durability. They may also help Connecticut Homeowners reap an even bigger reward – one you may not be aware of. Your new roof could save you money on your taxes. Roofing systems that aid in energy savings don’t only save you money on your monthly bills – they can also keep money in your pocket next spring.
Lawmakers have created various incentives in recent years to encourage remodels and appliance replacements that allow for smaller energy footprints. When many Connecticut homeowners take notice of such incentives, this can make a huge difference in energy use across the country. Here are two different types of tax savings you may be eligible for, depending on the kind of new roof you choose to install.
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Energy Star Federal Tax Credit
This credit is for metal roofing with pigmented coatings or cooling granules specifically. It also applies to asphalt roofs with the same characteristics. However, the metal roof Energy Star will save you more on your monthly bills. Why not always reap the most rewards? This credit is for 10% of your roofing costs, minus labor. You can find out how much you could save with this tax credit by multiplying your total cost of materials by 0.1.
$500 Energy Tax Credit
Much like the Energy Star credit, this credit applies if you have installed a qualifying metal (or asphalt) roof that is heat-efficient. It can be achieved by filing an IRS Form 5695 to show the cost of materials, excluding the cost of installation. The IRS caps this at a $500 total deduction; the deduction was initially supposed to expire two tax seasons ago but was extended.
How to Take Advantage of Tax Credits
Across the board, it’s necessary to check your state’s tax exemptions for energy efficient remodeling. When you already have a new roof to love, saving at tax time is the icing on the cake. Savings may vary by state, or federally by the tax year. Be sure to research each tax incentive thoroughly. If tax savings are part of your goal with your remodel, let our expert team help you decide which roofing system is the most energy efficient to qualify.
If you know that you may be eligible for a tax credit for your new roof (or another energy-efficient remodel), be sure to ask your Hartford tax preparer for an IRS Form 5695. Enjoy your continued savings!