Question: Pam’s roof has been needing to be replaced for several years, and in 2023, she finally sprung for a brand-new metal roof. She paid $70,000 for the double-insulated roof, which is not connected with a solar panel. She came into your office, excited because she heard on the news that she could get a tax credit for some of the roof costs. She has all the pertinent paperwork with her. What do you tell her?
Answer: Unfortunately, there are a lot of sources of misinformation out there. In this case, you must inform Pam that metal roofs no longer qualify for the federal energy efficient home improvement credit. Code §§ 25C(c)(2) and (3), as amended by the 2022 Inflation Reduction Act, removed roofs from the definition of building envelope components. Pam should keep her paperwork in the event of any changes; for 2023, you could assist her in locating any state tax credits, manufacturer rebates or other incentives that may be available.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.