Roofing
march 2 25

Key Takeaways

  • A roof replacement usually isn’t deductible the year you pay for it. As a capital improvement, the cost gets added to your property’s cost basis, which lowers the taxable gain when you sell. Repairs don’t qualify at all, and the improvement has to add value, extend useful life, or adapt the property to a new use.
  • Storm damage may qualify as a casualty loss. The IRS allows write-offs for damage from sudden or unexpected events, including storms, windstorms, hurricanes, floods, earthquakes, and landslides. Unlike a capital improvement, this route can return money for damage or for a full replacement.
  • The solar credit is 30% of installation cost through 2033. It drops to 26% after that. The credit rolls over if your tax bill that year is too small to use it, and you have to own the system, so leases and power purchase agreements don’t qualify.
  • Only Energy Star certified products qualify for the roofing credit. Metal roofing, slate, clay tiles, concrete tiles, asphalt shingles, and some roof coatings can qualify, but only specific EPA-certified products do. Confirm the exact product qualifies before you buy, and keep your receipts and documentation.
  • Run this by a tax professional before you file. Tax law changes, and eligibility turns on details specific to your property and situation. Treat everything here as background for a conversation with a licensed tax advisor, not as a substitute for one.

As a homeowner, you’re going to have to repair and replace parts of your home. This includes your roof. If you’re in the market for a full roof replacement, prices can be a bit high depending on the type of roof you select. For this reason, many wonder whether they can claim a new roof as a tax deduction to offset some of the cost. We have created this guide to help you understand the process.

Please note: The information provided in this article is for general guidance only and may not apply to your unique circumstances. Tax laws are subject to change, and eligibility for deductions or credits can vary. We strongly recommend consulting with a licensed tax advisor or financial professional to determine the best course of action for your roof replacement or energy-efficient upgrade.

Claiming a Roof Replacement Through Casualty Loss

Severe storms are becoming more common in the United States. Events like hurricanes are also becoming more intense. Severe weather accounts for billions of dollars in damages in Texas alone, which is why many residents look to the government to help recoup some of the cost. According to the IRS, if there was damage to your property because of sudden or unexpected weather, then you may be able to write off some of that loss from your federal income taxes.

There are a few types of natural disaster events that can be a write-off.
  • Earthquakes
  • Landslides
  • Storms
  • Volcanic eruptions
  • Windstorms
  • Tsunamis
  • Hurricanes
  • Floods

While theft, vandalism, or burglaries won’t typically affect your roof, you can write off damages from accidents, riots, or terrorist attacks. One of the benefits of a casualty loss write-off is that it can let you get money back for damage or the cost of an entire replacement. This is useful should the storm or qualifying event damage your roof past repair.

Claiming a Roof Replacement as a Capital Improvement

A capital improvement is an expense used to replace an item like a roof. The expense must add value to the property, prolong its useful life, or adapt it to new uses. Unlike casualty loss, repairs are not tax deductible. Capital improvement only works with full roof replacements. The criteria for capital improvement also require that the roof replacement be a direct upgrade. It needs to add value to the property.

This is essential when seeking a new roof. For example, if your current roof is a gable style and uses asphalt shingles, you can expect it to last anywhere between 20 and 30 years. If you want to upgrade to a roof with an even longer life expectancy, like a standing-seamed metal roof that lasts more than 50 years, that would be a capital improvement.

With a capital improvement, you won’t be able to make the deduction on your taxes the year you make these improvements. These are instead added to the cost basis of the property, which directly reduces the taxable gain when you sell the property.

Roof Replacement Through Energy-Efficient Roof Tax Credits

Another way to receive substantial tax benefits is to take advantage of the federal government’s Energy Star roof tax credit. This is a tax credit designed to encourage homeowners to invest in eco-friendly roofing solutions. As the name implies, the roofing materials covered by the credit are all Energy Star-certified.

This means that they meet the standards set forth by the Environmental Protection Agency (EPA). Effectively, these roofing options reduce energy consumption and promote sustainability. Before you try to submit for this tax credit, it’s critical that you verify that the roofing product you’re selecting falls under the guidelines set by the EPA. This means that they need to be Energy Star certified for increased energy savings. It’s also essential that you keep your documents and records and potentially seek tax guidance.

Some of the roofing options that meet the EPA’s requirements are:

The Solar Investment Tax Credit

The Solar Investment Tax Credit, which the government also calls the investment or input tax credit (ITC), allows you to receive a tax credit when using solar energy systems on your roof. This is a sizeable tax credit since the government will credit you up to 30% of the installation cost of the system.

This tax credit is available to both commercial and residential owners, and the 30% number will stay at that level until 2033. Once that year comes, the credit will drop to 26%. This credit also rolls over, which means that if you don’t have the bill in the year of the installation, you can still receive the credit in the next year. You simply must own the solar energy system to get this credit, so those with solar leases or PPAs won’t be eligible. This is an incentive that is designed to help reduce carbon footprints across the nation.

Now that you understand the Solar Tax Credit, you should understand the solar roof building materials available. Here’s a breakdown of the three most popular options.

Solar Roofing Tiles

These are interlocking photovoltaic panels that cover the surface of the roof. They differ from solar roofing shingles because they are intrinsically built into the roof and aren’t simply attached. Like any form of solar energy-gathering technology, sunlight hits the photovoltaic tiles and generates electricity through a chemical reaction. This type of roof tiling has the potential to reduce energy costs by between 40% and 60%.

When it comes to solar tiles, our team at KPost Company is experienced with installing this technology. Since these are part of the roof’s construction from the start, you can consider these tiles when needing to replace your roof. Wired tiles send solar-generated energy into your home using a power distribution board.

Solar Roofing Shingles

Like solar tiles, solar shingles use photovoltaic technology to chemically create electricity when they bathe in sunlight. The main difference is that the installation of solar shingles on an existing roof looks like more reflective variations of traditional asphalt or slate shingles. Since they are incorporated into preexisting roofing structures, roofing experts refer to them as building-integrated photovoltaics (BIPVs).

These types of shingles have the benefit of being more durable than many roofing materials and may last longer. They also come in two distinct varieties: silicon and copper-indium-gallium-selenide solar shingles.

Solar Roofing Panels

Unlike the other two options, solar roofing panels aren’t integrated into the superstructure of your roof. These are installed atop the existing roof, which means that they are an easy upgrade since you’re just having them placed and wired in. These aren’t as aesthetically pleasing as other types, but they are a simplified photovoltaic system that’s inexpensive to incorporate.

You Can Use Tax Codes to Reduce the Cost of Roof Upgrades and Replacements

It is possible to better balance the cost of roofing with tax codes. At KPost Company, we provide all the roofing services and technologies to get your new roof up and running on your home. We have several material options for roofing as well, including slate, tiles, metal, synthetic, and TPO.

At KPost Company, we are a top roofing company in the area of Dallas, TX. Give us a call today, and our team will set you up with a consultation that will get you started with a new roof.

FAQs

Yes, and the change is a large one. The 30 percent residential clean energy credit under Section 25D ended for property placed in service after December 31, 2025, so a homeowner buying a solar roof or solar panels outright in 2026 no longer claims it. The Section 25C energy efficient home improvement credit ended on the same date. Commercial and third-party-owned arrangements are treated differently. Tax rules change, so confirm current treatment with a tax professional before making a decision based on any credit.

A replacement on a rental is generally treated as a capital improvement and depreciated over the recovery period rather than deducted in one year, while repairs to keep the property in operating condition are typically deducted currently. The line between a repair and an improvement is where most disputes happen. Keep invoices detailed enough to show which work was which.

Section 179 has allowed businesses to expense qualifying improvements to nonresidential real property, including roofs, rather than depreciating them over 39 years, subject to annual limits and income restrictions. That treatment can change the after-tax cost of a commercial roof substantially. Because eligibility depends on your specific situation and the year the work is placed in service, have your CPA confirm it before scheduling.

Yes. A casualty loss is reduced by any insurance reimbursement you receive or reasonably expect to receive, so a fully covered claim generally leaves nothing to deduct. Casualty loss deductions for personal property have also been limited to federally declared disaster areas in recent years. This is another area where the details matter enough to warrant professional advice rather than a general rule.

Keep the signed contract, the final invoice showing what was done and when, proof of payment, all product documentation and warranties, and photographs before and after. If the work followed storm damage, keep the claim number, the adjuster’s report, and the storm date. These records support both a future tax position and the basis calculation when the property sells. Our roof replacement team provides that documentation as part of every project.
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