Roof Credit

[athaureaux6]

Hi online community, it seems that they extended the roof replacement as a part of the Energy Efficient Home improvement credit for 2023 but in the latest Form 5695 I do not see the line for the entry for the roof. Until today, I still find conflicting information, many articles are saying roof no longer qualifies while others say it was extended. The fact of the matter is that I compare the 2022 with the 2023 and the latest does not have the entry for the roof. Answers will be appreciated. Have a great day everybody. 

[Just-Lisa-Now-]

I thought I saw in a recent post in a tax pro group somewhere that roofs were gone for 2023, but I havent really dug into it looking for verification.....

Im not finding the word "roof" on this page at all, I think its gone.
https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit

[athaureaux6]

https://nationaltaxreports.com/energy-star-roof-tax-credit/

Hi Lisa, somebody post it this two o three weeks ago. Thank you. 

[Just-Lisa-Now-]

All the links there take you to TurboTax, not to any actual information about the credit...I take my federal and state update classes end of next week, Im sure all this kind of stuff will be included.  

[Jim-from-Ohio]

Roof credit is available for 2023, just not in the software yet: https://www.nbc4i.com/business/press-releases/ein-presswire/652394444/new-roof-installations-now-com...

[Just-Lisa-Now-]

@Jim-from-Ohio   Can you find anything from an IRS source that talks about the roof credit?

[Jim-from-Ohio]

@Just-Lisa-Now- only certain roofs qualify.. found this.. see page 3 https://www.irs.gov/pub/taxpros/fs-2022-40.pdf

[Just-Lisa-Now-]

In this link, Im only seeing info about roofing costs associated with adding solar.  I must be missing it.

[Jim-from-Ohio]

This is as specific I can find from that notice: 

Q2. Are roofing expenditures that were necessary for the installation of solar panels eligible for the Residential Clean Energy Property Credit? (added December 22, 2022)

A2. In general, traditional roofing materials and structural components do not qualify for the Residential Clean EnergyProperty Credit because they primarily serve a roofing or structural function. 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 qualify for the credit.

[TaxGuyBill]

Roofs USED to be part of the §25C(c)(2) credit.  See first link.

It is no longer there.   See second link.

https://web.archive.org/web/20210224234436/https://www.law.cornell.edu/uscode/text/26/25C

https://www.law.cornell.edu/uscode/text/26/25C

[jjchavez123]

I'm having the same problem with the roof credit.  I don't see it anywhere on the form but read that it in fact had been extended.  

[TaxGuyBill]

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@jjchavez123 wrote:

but read that it in fact had been extended.  

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I suspect that whatever you read is incorrect.

The only potential category would be as 'insulation' (primarily designed to reduce heat loss), but I haven't seen any criteria from the IECC.  If there is no criteria from the IECC, then it does not qualify as 'insulation'.

[Frustrated-in-IL]

Theoretically, seems like it should be cut and dried but apparently it isn't.  Those links cited above indicate there is a roof credit yet the IRS material indicates there is no credit.  Of course, our clients read the links and not the IRS stuff.

The reality of it was very few roofs qualified under the old rules.  No one wanted a white roof.  How much time was wasted trying to figure out if the pewter gray shingles qualified?  If it is dead, and from above it appears so, good riddance.