10% Tax Credit - Energy Star® Metal Roofing
In December, Congress extended the Residential Energy Efficient Property Credit through the end of 2016, which included tax credits for Energy Star® metal roofing.
These tax credits are retro-active, applying to both materials purchased in 2016, as well as previously purchased materials in 2015.
Many of Best Buy Metals roof materials are available in Energy Star® rated colors. These colors not only save you money on electric bills, they can also save you money when tax time comes.
A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed.
This 2016 credit allows for 10% of the roofing material cost, up to $500. This tax credit is retro-active, allowing for a metal roof tax credit on purchases in 2015 as well.
Example: If your metal roof material costs are $4800, when you do your taxes at the end of the year this would reduce your taxes by $480, bringing the actual cost of your total roof investment down to $4320. ($4800-$480)
- Must be installed on homeowner's primary residence
- Cannot be a new home (this must be a re-roof)
- Must be expected to last 5 years or have at least a 2 year warranty
- Installation costs are not included
- Manufacturer's Certification Statement required
- For tax purposes, save your receipt and the Manufacturer's Certification Statement
- Use IRS Form 5695
The requirements for Energy Star compliance are broken down into two categories: Low-Slope roofs and Steep-Slope roofs. Low-Slope roofs are surfaces with a slope of 2:12 or less. Steep-Slope roofs are defined as surfaces with a slope greater than 2:12. Following is information regarding the requirements of each type of Energy Star® roofs.
|Table 1 – Specifications for Low-Slope Roof Products|
|Energy Efficiency Levels|
|Initial Solar Reflectance||Greater than or equal to 0.65.|
|Maintenance of Solar Reflectance||Greater than or equal to 0.50 three years after installation under normal conditions.|
|Manufacturer warranty for defects in materials and manufacturing||Each company's roof product warranty for reflective roof products must be equal in all material respects to the product warranty offered by the same company for comparable non-reflective roof membrane products. A company that sells only reflective roof products must offer a warranty that is equal in all material respects to the standard industry warranty for comparable non-reflective roof products.|
|Table 2 – Specifications for Steep-Slope Roof Products|
|Energy Efficiency Levels|
|Initial Solar Reflectance||Greater than or equal to 0.25.|
|Maintenance of Solar Reflectance||Greater than or equal to 0.15 three years after installation under normal conditions.|
|Manufacturer warranty for defects in materials and manufacturing||Each company’s warranty for ENERGY STAR qualified roof products must be equal in all material respects to the product warranty offered by the same company for comparable non-ENERGY STAR qualified roof products. A company that sells only ENERGY STAR qualified roof products must offer a warranty that is equal in all material respects to the standard industry warranty for comparable non-ENERGY STAR qualified roof products.|
Benefits of an Energy Star® Metal Roof System
The benefits of ENERGY STAR qualified roof products include:
- Saves Money and Energy. According to the EPA, about $40 billion is spent annually in the US to air condition buildings — one-sixth of all electricity generated in a year! ENERGY STAR qualified roof products reduce the amount of air conditioning needed in buildings, and can reduce energy bills by up to 50 percent.
- Downsizes Cooling Equipment. A reflective roof can reduce peak cooling demand by 10-15%. As a result, the home or building owner may be able to purchase a smaller, more efficient, and less expensive cooling system.
- Decreases Pollution in Urban Areas. Reduced energy demand means less burning of fossil fuels, which results in less pollution from power plants. Also, ENERGY STAR qualified roof products help to reduce the “heat island effect,” in which dark, heat-absorbing buildings and paved areas make the air in urban areas hotter, and smoggier.
- Increases Roof Product Life. ENERGY STAR qualified roof products maintain a more constant temperature and reduce thermal shock, which occurs when cool rain hits a hot roof, causing a sharp drop in temperature. During temperature changes, a roof expands and contracts, causing stress and degrading the roof.
*Make sure to consult with your accountant regarding any tax related credit or question - this is not legal advise.