Is there a tax credit for roofs? No, not under the law covering returns for the 2023 tax year. If you replaced or added a new roof to your home between 2017 and 2022 and did not yet claim it, you could qualify for an energy-efficient home improvement tax credit for as much as 10% of the cost (not including installation costs), up to $500. Here’s how to add your roof tax credit to your refiled tax return and the requirements to receive a roof tax credit.
Am I eligible for a roof tax deduction?
This tax credit was extended through December 31, 2022, and you may take advantage of it even if you replaced your roof before 2023. If you were eligible and did not claim it on your return as far back as 2017, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must have been for your primary residence (you lived here most of the time).
- This must not have been for a new home or a rental.
- The roofs that were eligible are reflective asphalt or metal.
- Roof coatings are not eligible.
- You must have a copy of the Manufacturer's Certification Statement to qualify
- More eligibility requirements can be found here.
How do I apply for a roof tax credit?
- Make sure you’ve saved a copy of the roof Manufacturer’s Certification Statement for your records, but you do not need to include this with your tax return. More details here.
- When you submit your refiled tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a new roof on my refiled tax return?
You can deduct up to 10% of the cost (not including installation costs), up to $500.
Other common questions about roof tax credits:
- Was a roof replacement eligible for a tax credit? Yes, see above for details on how to claim this tax credit.
- Did a new roof qualify for the tax credit? Not for a brand new home, but an energy-efficient replacement roof would qualify when installed on your primary residence.
- Can roof repairs be used to claim the tax credit? Usually not. The federal government typically considers repairs as current expenses, meaning those necessary to maintain a property. Replacing a roof, in contrast, is considered a capital improvement and therefore does qualify for the tax credit.
- Were metal roofs eligible for a tax credit? Yes, in certain circumstances. The product must be certified by ENERGY STAR®. You can learn more here. The tax credit is generally for up to 10% of cost (not counting installation, and with a $500 lifetime limit).
- Did an asphalt roof qualify for the tax credit? Yes, if it has appropriate cooling granules. The tax credit is for up to 10% of cost (not counting installation) with a lifetime limit of $500. Find out more here.
- Did the tax credit apply to roof coatings? No.
- Were new roof shingles eligible for a tax credit? If you are replacing your roof, the cost of materials can be claimed as a tax credit to the amount allowed by law (see above). If you are simply replacing or repairing certain shingles, that does not qualify for a tax credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Solar panels collect light energy from the sun and convert it into electricity for your home and solar hot water heaters use the sun to provide hot water to your home. Here’s what you need to know to find out if you qualify for home energy improvement tax credits for installing solar panels or solar hot water heaters. Find out more about how solar energy works on our blog.
Am I eligible for a solar panel installation tax deduction?
- Both primary residences and secondary homes qualify.
- This can be for an existing home or new construction.
- This must not be for a rental home.
- The panels must provide electricity for your home.
- They must meet required fire and electrical codes.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a solar panel tax credit?
- Make sure you’ve saved a copy of the solar panel’s Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for new solar panels on my tax return?
You can receive a tax credit for a percentage of the cost (not including installation costs), which varies depending on when the system was/is placed in service.
- 30% for systems placed in service after December 31, 2016, and before January 1, 2020
- 26% for systems placed in service after December 31, 2019, and before January 1, 2022
- 30% for systems placed in service after December 31, 2021, and before January 1, 2033
- 26% for systems placed in service after December 31, 2032, and before January 1, 2034
- 22% for systems placed in service after December 31, 2033, and before January 1, 2035
Other common questions about solar panel tax credits:
Is there an ENERGY STAR® label yet for solar panels?
No, solar energy products are not currently eligible to earn the ENERGY STAR® label because they do not yet meet the criteria in the ENERGY STAR® guiding principles. As solar panels increase in popularity that could change.
Am I eligible for a solar hot water heater tax credit?
- The water heater may be installed in your primary residence or a secondary home.
- Existing and new homes qualify; rentals do not.
- Solar panels must help power the residence and meet the necessary fire and electrical codes.
- At least half the energy generated by the solar hot water heater must come from the sun.
- The system must be certified by the Solar Rating and Certification Corporation.
- The water heated by the solar water heater must be used inside the home.
- More eligibility requirements can be found here.
How do I apply for a solar hot water heater tax credit?
- When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much of a credit can I claim on my tax return for a new solar hot water heater?
You could be eligible for an energy-efficient home improvement tax credit on as much as 30% of the cost, including installation, with no upper limit. But the value of the tax credit is scheduled to decrease over time.
- 30% for systems placed in service after December 31, 2016, and before January 1, 2020
- 26% for systems placed in service after December 31, 2019, and before January 1, 2022
- 30% for systems placed in service after December 31, 2021, and before January 1, 2033
- 26% for systems placed in service after December 31, 2032, and before January 1, 2034
- 22% for systems placed in service after December 31, 2033, and before January 1, 2035
Other common questions about solar hot water heater tax credits:
- Is a solar water heater installed for a swimming pool or hot tub eligible for a tax credit? No.
- Do solar hot water repairs qualify for tax credits? No. They are considered maintenance expenses rather than home improvement expenses and therefore are not eligible.
- Will any ENERGY STAR® solar water heater qualify? Yes, all ENERGY STAR-certified solar hot water heaters are eligible for the tax credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Replacing old windows, doors and skylights is one way to save on energy costs. Energy-efficient windows, doors and skylights can prevent heat loss in cooler weather and help maintain the cool temperature you want during the warmer months.
Am I eligible for a windows, doors and/or skylights tax credit?
This tax credit has been extended through December 31, 2023, and you may take advantage of it even if you replaced your windows, doors, or skylights before 2023. If you were eligible and did not claim it on your return as far back as 2017, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be for your primary residence (you live here most of the time).
- This must not be for a new home or a rental.
- The replacement windows, doors or skylights must be ENERGY STAR-certified products.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a windows, doors and/or skylights tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for new windows, doors and/or skylights on my tax return?
- You could be eligible for an energy-efficient home improvement tax credit of up to 10% of the cost (not including installation), up to $500 for two exterior doors and up to $600 for windows and skylights.
Other common questions about windows, doors and/or skylights tax credits:
- Do I have to replace all the windows, doors or skylights to qualify for the tax credit? No. You can replace any number of windows, doors and/or skylights and still qualify as long as they are certified by ENERGY STAR®.
- Do only replacements count for a tax credit? No. Installing a new window where there wasn’t one previously (such as in an addition) also can qualify for the home energy improvement tax credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
If you want to learn more about insulating your home, check out our Home Energy Savings series on attic insulation. In addition, products that reduce air leaks can also qualify if they follow certain criteria.
Am I eligible for an insulation tax credit?
This tax credit has been extended through December 31, 2023, and you may take advantage of it even if you replaced your insulation before 2023. If you were eligible and did not claim it on your return as far back as 2017, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be your primary residence (you live here most of the time).
- This must not be a new home or a rental.
- Bulk insulation products such as batts, spray foam insulation and rolls are typically covered.
- The credit can apply to replacing or improving insulation, but its primary purpose must be to insulate.
- You must have a copy of the Manufacturer’s Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for an insulation tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much of a tax credit can I claim for insulation?
For 2023, you can claim 30% of the cost (not including installation), up to $1,200.
For years 2017-2022, you can claim 10% of the cost (not including installation), up to $500.
Other common questions about insulation tax credits:
Do air sealing products also qualify for a tax credit?
Products that reduce air leaks can also qualify, as long as they come with a Manufacturer’s Certification Statement. These include:
- Weather stripping
- Spray foam in a can, designed to air seal
- Caulk designed to air seal
- House wrap
Can I install the insulation or air sealing products myself and get the insulation tax credit?
Yes, you can install the products yourself and still qualify for the credit.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Biomass stoves burn plant-derived fuel, such as wood and wood waste like wood pellets, as well as grasses.
Am I eligible for a biomass stove tax credit?
This tax credit has been extended through December 31, 2023, and you may take advantage of it even if you installed your biomass stove before 2023. If you were eligible and did not claim it on your return as far back as 2017, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here most of the time).
- It cannot be used for a new home or a rental.
- The stoves must be used for heat or water heating and have a thermal efficiency rating of at least 75% as measured using a lower heating value.
- You must have a copy of the Manufacturer’s Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a biomass stove tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a biomass stove on my tax return?
If the unit has a Thermal Efficiency Rating of at least 75%, you are eligible to claim an uncapped credit of up to 30% of the purchase and installation costs, with a cap of $2,000.
- 26% for systems placed in service between 01/01/2021 through 12/31/2022
Other common questions about biomass stove tax credits:
- What should a retailer provide me when I buy a biomass stove to get the tax credit? Retailers should give you the Manufacturer’s Certification Statement for the model you purchase. This is a signed statement from the manufacturer certifying that the stove qualifies for the tax credit. Manufacturers often have these on their websites if you did not get one when you bought the stove. Be sure the statement matches the model number of your biomass stove.
- What does the IRS consider to be biomass fuel? The IRS defines biomass fuel as “any plant-derived fuel available on a renewable or recurring basis.”
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Replacing antiquated central air conditioners or adding central air conditioning to your home could qualify you for a federal tax credit. Find out more here.
Am I eligible for a central air conditioner tax credit?
This tax credit has been extended through December 31, 2023, and you may take advantage of it even if you installed your new central A/C unit before 2023. If you were eligible and did not claim it on your return as far back as 2017, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here most of the time).
- It cannot be used for a new home or a rental.
- The air conditioner does not have to be replacing an old air conditioner to qualify.
- The air conditioner must be certified by ENERGY STAR® as Most Efficient to qualify for the home energy improvement tax credit.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a central air conditioner tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a central air conditioner on my tax return?
You are eligible for a home improvement tax credit up to 30% of the cost if you replace or install central air conditioning. This is capped at $600.
Other common questions about central air conditioner tax credits:
- Do I have to replace both heating and central air to qualify? No, you do not have to replace both your heating and air conditioning in theory. Practically speaking, however, you may have to replace both for the air conditioner to qualify. Most central air conditioners will only qualify for the tax credit if you also replace the air moving device that pushes the cool air through the duct system, and this is typically part of the heating system, too.
- Is there a tax credit for window air conditioning units? No, only central air conditioners are eligible.
- Is there a tax credit for boilers and furnaces? Yes, boilers and furnaces are also eligible for tax credits of 30% of the cost up to a maximum of $600.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Water Heaters | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Unlike their solar counterparts, non-solar water heaters operate on natural gas, propane or electricity. Here’s what you need to know to see if your water heater qualifies for a federal tax credit.
Am I eligible for a non-solar water heater tax credit?
This tax credit has been extended through December 31, 2023, and you may take advantage of it even if you installed your new water heater before 2023. If you were eligible and did not claim it on your return as far back as 2017, you can refile your return for the appropriate year to take advantage of the savings. Consult your tax professional to find out if refiling is right for you.
- This must be used for your primary residence (you live here most of the time).
- It cannot be used for a new home or a rental.
- Electric heat pump water heaters qualify for the home improvement tax credit only if they have a Uniform Energy Factor of at least 2.2.
- Natural gas, oil or propane hot water heaters must have a Uniform Energy Factor of at least 0.82 or thermal efficiency of at least 95%.
- You must have a copy of the Manufacturer's Certification Statement to qualify.
- More eligibility requirements can be found here.
How do I apply for a non-solar water heater tax credit?
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records, but you do not need to file this with your tax return. More details here.
- When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a non-solar water heater on my tax return?
You are eligible for a $600 home improvement tax credit if you replace your non-solar water heater with a more energy-efficient model.
Other common questions about non-solar water heater tax credits:
- Does it matter what fuel my water heater uses to get the tax credit? Water heaters that run on gas, propane or electricity are all potentially eligible as long as they meet other tax credit requirements listed here.
- Do all ENERGY STAR-certified non-solar water heaters qualify? No. Only some models certified by ENERGY STAR® meet the requirements. To make sure you get the credit, acquire the Manufacturer's Certification Statement that verifies the water heater's eligibility.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Electric Vehicles | Geothermal Heating | Wind Turbines | Tax Rebates
Existing tax credits for those purchasing a new plug-in electric vehicle, or installing a home charging station, are in place for 2023. The Inflation Reduction Act has extended them through 2032. The credits are intended to incentivize the use of plug-in electric vehicles, so if you purchased a vehicle or home charger in 2023, inform your tax professional to take full advantage of the tax credits.
Am I eligible for an electric vehicle and/or home charging station tax credit?
For EV tax credits, the vehicle must:
- Have been purchased in 2023.
- Be for personal use (not resale).
- Be used in the United States.
- Have an external charging source.
- Have a gross weight rating of less than 14,000 pounds.
- Undergone final assembly in North America, if purchased after August 16, 2022.
- Be manufactured by a company that has not sold more than 200,000 EVs since 2009.
For EV home charging stations, the equipment must:
- Have been installed in 2023.
- Be installed in your primary residence.
- Be installed in a residence in the United States.
How do I apply for an electric vehicle and/or home charging station tax credit?
For EV tax credits:
- When you submit your 2023 tax return, file IRS Form 8936 found here .
- Have your vehicle’s VIN ready when preparing your tax return or provide it to your professional tax preparer.
For EV home charging stations:
- Make sure you’ve saved a copy of the Manufacturer’s Certification Statement for your records and any installation invoices, but you do not need to file these with your tax return. More details here.
- When you submit your 2023 tax return, file Form 8911 (Alternative Fuel Vehicle Refueling Property Credit) here.
How much can I claim for an electric vehicle and/or home charging station on my tax return?
For qualified plug-in electric vehicles (EVs) purchased and placed into service in 2022 or before, you are eligible for a clean vehicle tax credit of up to $7,500. The credit is non-refundable, so if you owe less in taxes than the credit amount, you cannot receive a refund for the excess amount.
The credit equals:
- $2,500 base amount
- Plus $417 for a vehicle with at least 7 kilowatt hours of battery capacity
- Plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours
- Up to $7,500 total
For vehicles purchased after April 18, 2023, that meet critical mineral and battery component requirements, additional amounts apply:
- $3,750 if the vehicle meets the critical minerals requirement only
- $3,750 if the vehicle meets the battery components requirement only
- $7,500 if the vehicle meets both
For home EV charging stations, taxpayers are eligible for a credit of 30% of the purchase and installation cost of the home charging unit, however, this is capped at $1,000. For businesses installing EV chargers, this is capped at $3,000.
Other common questions about electric vehicle and home charging station tax credits:
- What if I purchased a plug-in electric vehicle before the 2023 tax year? If you did not take advantage of this tax credit during the year you purchased the vehicle, you can still claim the tax credit, but you will need to refile the tax return for that year. Consult your tax professional to determine if this is right for you.
- Will the tax credit for installing an EV home charging station still exist next year? Yes, this credit is part of the Inflation Reduction Act and will exist through 2023.
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Geothermal Heating | Wind Turbines | Tax Rebates
Geothermal heat pumps are similar to ordinary heat pumps, except for this one major difference: They use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. They use the Earth’s natural heat, making them among the most efficient heating and cooling technologies currently available.
Am I eligible for a geothermal heat pump tax credit?
- Both primary residences and secondary homes qualify.
- It can be used for an existing home or new construction.
- Rentals do not qualify.
- All ENERGY STAR-qualified geothermal heat pumps are eligible for the tax credit.
- More eligibility requirements can be found here.
How do I apply for a geothermal heat pump tax credit?
When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a geothermal heat pump on my tax return?
Installing a geothermal heat pump in your home could entitle you to a federal tax credit of up to 30% of the cost, including installation, with no upper limit. However, the percentage of the cost you can claim varies depending on when the system was/is placed in service.
- 30% if placed in service after December 31, 2016, and before January 1, 2020
- 26% if placed in service after December 31, 2019, and before January 1, 2022
- 30% of placed in service after December 31, 2021, and before January 1, 2033
- 26% if placed in service after December 31, 2032, and before January 1, 2034
- 22% if placed in service after December 31, 2033, and before January 1, 2035
Other common questions about geothermal heat pump tax credits:
- Does a geothermal heat pump have to include water heating to qualify for the federal tax credit? No, it does not. That requirement was eliminated in December 2009.
- Is there a tax credit for water-to-water geothermal heat pumps? Yes, water-to-water geothermal heat pumps can qualify for the tax credit. The geothermal heat pump tax credit is for 30% of the cost of the product (including installation costs) with no upper limit, if it was placed in service by the end of 2019, and it will decrease incrementally to 22% by the end of 2023 (see above).
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Wind Turbines | Tax Rebates
Wind turbines essentially collect kinetic energy from the wind and then convert it into electricity.
Am I eligible for a small wind turbine tax credit?
- Only primary residences are eligible starting in 2023.
- It can be used for an existing home or new construction.
- Rentals are not eligible.
- To be eligible for the credit, the turbine must have a nameplate capacity of no more than 100 kilowatts.
- More eligibility requirements can be found here.
How do I apply for a small wind turbine tax credit?
When you submit your 2023 tax return, file Form 5695 (Residential Energy Credits) here.
How much can I claim for a small wind turbine on my tax return?
You can qualify for up to 30% of the cost (including installation) for a small wind turbine put into service during 2023, but that percentage may decline if you are refiling for a previous year:
- 30% if placed in service after December 31, 2016, and before January 1, 2020
- 26% if placed in service after December 31, 2019, and before January 1, 2022
- 30% if placed in service after December 31, 2021, and before January 1, 2033
- 26% if placed in service after December 31, 2032, and before January 1, 2034
- 22% if placed in service after December 31, 2033, and before January 1, 2035
Discover more home improvement tax credits and energy-efficient appliance rebates:
Roofs | Solar Energy Systems | Windows, Doors and Skylights | Insulation | Biomass Heaters
Air Conditioning | Water Heaters | Electric Vehicles | Geothermal Heating | Tax Rebates
Like federal tax credits, rebates are incentives for consumers — this time from manufacturers and/or power companies rather than the federal government — to upgrade older and likely less energy-efficient appliances with newer models that operate more efficiently. Unlike tax credits, rebates are actual cash — eventually. Yes, some paperwork is required. You generally need to show proof of purchase and model numbers (depending on the type of rebate), but when everything matches up, your rebate will be mailed to your home from either the participating manufacturer or energy company.
What types of appliances qualify for rebates?
While the list changes regularly as manufacturers and power companies offer different options, the following appliances generally qualify for rebates:
How do I find out which energy-efficient appliance rebates are available?
While there are a number of ways you can discover rebates, the easiest way is to visit the ENERGY STAR® rebate center and type in your zip code. This government agency keeps track of rebates for energy-efficient appliances from a variety of resources, making it your one-stop appliance-rebate shop. The rebates change regularly, so it’s worth checking the site when you’re considering replacing or buying an appliance for the most up to date information.
It’s worth noting that in some instances an energy-efficient appliance might qualify for both a rebate and a tax credit. Now that could be a win-win for you and the environment!