Real estate taxes are burdensome to many homeowners. If you own property in the US, you understand the pain associated with a higher-than-expected tax bill, especially in this era’s spiking living costs.
Luckily, there are several ways to enjoy significant tax credits and incentives. So, how can you qualify for federal tax credits?
The Relationship Between Tax Credits and a New Roof
US property owners can switch their old roofs with newer, energy-efficient systems and get roofing tax credits. But, to enjoy this upside, you must use Energy Star products.
The Energy Star products eligible for a roofing tax credit include asphalt and metal roofs. To qualify for any incentive, you must use an asphalt roof with cooling granules or a metal roof with pigmented coating.
These certified product designs allow them to reflect a good chunk of the sun’s rays, lowering roof surface temperature and mitigating heat transfer in your home.
Today, you can get a roofing tax credit equal to 10% of your spending on certified roofing materials. Energy Star caps the cost at $500 and doesn’t factor in installation costs while calculating your tax credit.
Available Roofing Tax Credit Incentives
Several signs indicate you need to replace your roof, including curled shingles and storm damage. If your roof shows signs of wear or damage, have a roof replacement done and enjoy countless benefits, including the following incentives:
Solar Investment Tax Credit (ITC)
ITC is a 30% tax credit offered to residential property owners after installing solar systems. The federal government introduced it primarily to incentivize homeowners to use clean energy. It has gained significant traction and facilitated increased solar deployment.
Commercial Buildings Energy Efficiency Tax Deduction
Before we proceed, let’s discuss the differentiating factor between tax credits and deductions. A tax credit leads to a dollar-for-dollar reduction on the taxes you owe. On the other hand, a tax deduction primarily offsets your income.
With the above in mind, if you own a commercial building, you can install energy-efficient systems like interior lighting or an envelope and be eligible for The Commercial Buildings Energy Efficiency Tax Deduction for expenses incurred. This incentive covers expenses like solar PV panels and contractor labor costs.
PS: As mentioned earlier, you can get a tax credit after installing an asphalt or metal roof with energy-saving properties. So, those are available, as well as Solar Investment Tax Credits and Commercial Buildings Energy Efficiency Tax Deductions.
Considering the above, energy credits often change from year to year. To ensure you have the correct info, check Energy Star’s official website for any updates.
Tax Incentives Are Not The Only Reason To Consider A Roof Replacement
Getting a new energy-efficient roof is a great idea with significant tax incentives. But, there are several other incentives that a roof replacement affords the homeowner. These include:
Living in a comfortable home is necessary for residents of Kansas City, where summers can sometimes be incredibly hot and muggy and winters cold and windy. But you can’t do that if your roofing system facilitates excessive heat loss or gain at the worst moments.
Fortunately, if your roof makes your home uncomfortably hot or cold, you can switch to an energy-efficient system. It will ensure your living spaces maintain stable, desirable temperatures through optimized reflective qualities.
Lower energy bills
A typical US household spends over $4,400 on utility bills. You may pay more in days to come as supply and demand continue to lead to spiking energy market prices.
If you want to incur fewer monthly expenses, an energy-efficient roof can help out. If you invest in a certified roofing system today, your household can save money annually, quickly recovering the cost of the replacement.
Improved property value
Do you plan to put your property on the market soon? Replace your roofing system with a new, energy-efficient roof. Based on national averages, installing a new roof can significantly increase the resale value of a home.
Not to forget, a new roof improves curb appeal and attracts more prospective buyers. So, installing a new system will likely help you sell your home faster.
Peace of mind
An energy-efficient roof can last longer because it’s designed to reflect sun rays, staving off premature damage caused by excessive heat.
If you replace your roofing system with a top-shelf, energy-efficient roof, you can rest assured you won’t have to deal with costly premature repairs or replacements.
Ready to Upgrade to an Energy-Efficient Roof?
If you’d like to upgrade to an energy-efficient roof and enjoy tax credit incentives, reduced utility bills, and other benefits, we can help. At Bill West Roofing Inc., we are experts in everything roof-related, from repair to replacement.
Our roofers have served different clientele for nearly 50 years and have the experience required to provide exemplary roofing services. Contact us now for unrivaled results or a free estimate.