Residential energy credit --building envelope components

[jmbillmeyer]

I am seeing conflicting information on whether or not a new roof is eligible for the Form 5695 energy credit anymore? 

[Terry53029]

Some roofs may be entitled to the credit. the mfg. of the roof has to certify that it is.

[TaxGuyBill]

They don't qualify.  If you see any conflicting information, it is out of date.

[Terry53029]

@TaxGuyBill From IRS. Link. https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-question...

Q. Is a roof eligible for the residential energy efficient property tax credit?

A. In general, traditional roofing materials and structural components do not qualify for the credit. However, some solar roofing tiles and solar roofing shingles serve as solar electric collectors while also performing the function of traditional roofing, serving both the functions of solar electric generation and structural support and such items may qualify for the credit. Components such as a roof's decking or rafters that serve only a roofing or structural function do not qualify for the credit.

[TaxGuyBill]

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@Terry53029 wrote:

@TaxGuyBill From IRS. Link. https://www.irs.gov/newsroom/energy-incentives-for-individuals-residential-property-updated-question...

Q. Is a roof eligible for the residential energy efficient property tax credit?

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That IRS statement is wrong.  It does not qualify for the "residential energy efficient property credit" (which is what the OP asked about when he said "building envelope components".

But you are correct that certain solar tiles/shingles qualify for the solar credit.

[Terry53029]

@TaxGuyBill take a look at 2024 instructions for form 5695

[Terry53029]

@TaxGuyBill like I first responded to original poster " some roofs do qualify for credit"

[TaxGuyBill]

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@Terry53029 wrote:

@TaxGuyBill take a look at 2024 instructions for form 5695

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The Instructions confirm what I said.  Solar shingles may qualify for the solar credit. 

Shingles of any sort are no longer "building envelope components" that qualify for the "residential energy efficient property credit".

[qbteachmt]

Here's the difference, Pub 5695...

"Residential clean energy credit. The residential energy efficient property credit is now the residential clean energy credit." Clean Energy property is an energy consuming component.

"Energy efficient home improvement credit. The nonbusiness energy property credit is now the energy efficient home improvement credit." Energy efficiency is things like insulation, storm doors and windows, heat pumps.

The change in description is the first way to tell if you are reading something current.

"Residential energy property costs are costs of new qualified energy property that is installed on or in connection with a home...Qualified energy property is any of the following...
• Certain electric or natural gas heat pump water heaters; electric or natural gas heat pumps; central air conditioners; and natural gas, propane, or oil water heaters.
• Natural gas, propane, or oil furnaces and hot water boilers.
• Certain biomass stoves and biomass boilers.
• Certain improvements or replacements of panelboards, subpanelboards, branch circuits, or feeders."

"Qualified energy efficiency improvements are...
• Any insulation material or system and air sealing material or system that is specifically and primarily designed to reduce heat loss or gain of a home when installed in or on such a home.
• Exterior windows and skylights.
• Exterior doors."

Solar is nowhere on any of this, because it is generation property.