As you might already know, the federal government often offers tax credits to incentivize eco-friendly improvements on your home. You can, for instance, get a tax credit for installing a solar water heater or a more efficient furnace. And in 2016, you can get a tax credit for an energy-efficient roof, too!
The details
This tax credit is a federal income tax credit, and it’s effective through the end of this year: December 31st, 2016. In other words, you must have the roof installed before the end of the year to claim the credit.
The credit is for up to 10% of the cost of your roof, not including installation costs. You can claim up to $500. So to get the full credit, you’ll need to spend $5,000 on roofing materials.
One item of note here: roofs installed on business and secondary properties don’t count. The roof needs to be on your primary residence in order to apply for this tax credit. Your principal residence is defined as a home that you own and that you live in most of the time. Also, the roof must be retrofitted to an existing home. You can’t claim the credit if you’re adding a cooling roof to a new construction home.