Business & Finance Taxes

How to Replace a Metal Roof and Get a Federal Tax Credit

    • 1). Consider your savings when purchasing energy-efficient metal roofing, as opposed to standard roofing material. Energy-efficient material will save you much more money in the long run. The American Recovery and Reinvestment Act of 2009 offers tax credits for 30 percent of the total cost of new energy-efficient roofing products up to a maximum of $1,500. For example, approved energy-efficient materials costing $300 will be eligible for a $90 tax credit (30 percent of $300). Any costs that exceed $5,000 will be subject to the maximum eligible tax credit of $1,500. If $7,000 in material is purchased, it will still be subject to the $1,500 limit, even though 30 percent of $7,000 is $2,100.

    • 2). Find metal roofing material that meets the energy-efficient requirements outlined by the U.S. government. All products with the Energy Star seal are eligible for this tax savings. Energy Star roofing reflects the sun's rays and cools the surface of your roof. The cooler the roof, the less heat is absorbed into your home, which will reduce your air conditioning usage and decrease your energy bill. Lowering your energy use also helps the environment. The more you decrease your energy consumption, the less fossil fuel is burned by the utility industry to create electricity. Additional information on Energy Star metal roofing requirements can be found in the Resources section.

    • 3). Purchase your new energy-efficient metal roofing materials. Save all receipts and records after you install your roof. The IRS recommends that you save the Manufacturer's Certification Statement as well. This certification statement should be included with your purchase. If not, request one from your vendor. The IRS does not require this statement to be filed with your taxes, but the statement ensures that you have purchased the correct product to qualify for the tax credit.

    • 4). Complete your year-end taxes and file for your energy-efficient metal roofing tax credit on IRS Tax Form 5695. This form will be available at the end of the 2009 tax year. You will not be able to claim your tax credit until you file your year-end taxes.

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