Metal Roofing Tax Credit Incentives Explained

Economists tell us that that the ‘green’ business is looking up; even during these difficult economic times. Therefore, a metal roofing energy tax credit has been introduced, which helps persuade folks to install environmentally-friendly metal roofs, while simultaneously saving money on tax bills. If you’ve decided to install a metal roof, in order to help the environment and also save money on energy, you’ll also want to take advantage of the tax energy credit now available. The federal government offers residential energy-saving property credits, which will most certainly help your budget. Below is an explanation of this Cool Metal Roof tax benefit, and instructions on how to use it.

Know the Plan

This government incentive is a 30% individual tax credit, which goes up to $1,500, and applies to residential metal roofs. It is available to the public through December 31, 2016. This credit was put into place as part of the American Recovery and Reinvestment Act of 2009. It’s also good to know that this plan reduces your tax bill dollar-for-dollar, rather than merely lessening the amount of your taxable income. Although it’s relatively straight forward, it’s still highly recommended that you consult with your tax adviser before applying for it.

Know the conditions

To utilize this federal tax incentive, your roof must be anticipated to be usable for at least five years, or come with a two-year warranty. Therefore, be very careful when choosing the metal roof you intend to install. Make sure you read the warranty information carefully, and be certain you pick a long-lasting product.

Save your Receipt

Once you’ve cleared this plan with your tax adviser, be sure to save your receipt after purchasing the metal roof -- you will need it again at tax time. Thus, take this receipt and put it in a safe place where it can easily be retrieved when it comes time to file your taxes.

Use the Proper Tax Form

Be certain to use IRS Tax Form 5695 (version 2009). This form will either be available late in 2009, or early in 2010 at the IRS website. As the year 2009 comes to a close, check the IRS website regularly to see if this form is available to download.

Of course, you’ll also want to get yourself up to speed on metal roofs. A tax benefit is really no benefit at all, if you don’t actually need a metal roof in the first place. But if one of these roofs is a good fit for your house, now is the time to make that roofing change. After consulting with your tax adviser, simply follow the above steps to make sure you are using this tax incentive correctly. Remember to select a metal roof that offers at least a two-year warranty and will last for the minimum of five years, or you will not qualify for the credit. After taking the proper precautions, you are now ready to do the smart, and environmentally sound thing with your roofing needs, by purchasing a metal roof.