Roof Replacement Tax Credits and Rebates: What Homeowners Can Claim in 2025

Replacing a roof is a big investment, and the sticker price can catch anyone off guard. The good news? There are several tax credits and rebate programs in 2025 that can help lower your out-of-pocket costs. Between federal incentives, state programs, and utility rebates, you might be leaving real money on the table if you don’t know where to look.

In this guide, you’ll learn which roof replacement tax credits and rebates you can claim this year, what materials qualify, and how to file for them. We’ll also cover common mistakes to avoid so you can make the most of every dollar. Keep reading to see how much you could save on your next roofing project.

Understanding the 2025 Roof Replacement Tax Credit

The 2025 roof replacement tax credit falls under the Energy Efficient Home Improvement Credit, part of the Inflation Reduction Act. This program rewards homeowners who upgrade to materials that improve their home’s energy performance.

Here’s what you should know:

• The credit covers 30% of qualifying costs
• The annual cap is $1,200 for most energy-efficient home improvements
• The credit applies to your primary residence in the U.S.
• It’s non-refundable, meaning it can lower your tax bill but won’t create a refund on its own

While a standard asphalt shingle roof no longer qualifies on its own, certain add-ons, such as insulation, solar panels, and specific reflective materials, do. That’s where things get interesting for homeowners looking to save.

Energy-Efficient Roof Tax Credit 2025: What Qualifies

The energy-efficient roof tax credit 2025 focuses on materials and systems that help reduce heating and cooling costs. Not every roof upgrade qualifies, so it pays to know what the IRS looks for.

Qualifying Improvements

• Insulation and air sealing materials installed with your new roof
• Solar roofing systems, including solar shingles and rooftop panels (covered under a separate 30% Residential Clean Energy Credit with no cap)
• Reflective or cool roofing materials that meet ENERGY STAR standards
• Skylights that meet ENERGY STAR criteria

If you’re thinking about upgrading, look into energy-efficient roofing options that pair well with these incentives.

What Doesn’t Qualify

• Standard asphalt shingles without reflective coatings
• Basic re-roofing labor without energy improvements
• Roof repairs (only full replacements or qualifying upgrades count)

Cool Roof Rebates: Save on Reflective Roofing

A cool roof rebate is one of the best-kept secrets in home improvement savings. Cool roofs use reflective materials to bounce sunlight away from your home, keeping indoor temperatures lower and cutting cooling bills.

Many states, cities, and utility companies offer rebates for installing cool roofs. For example:

To qualify for most cool roof rebate programs, your materials must be certified by the Cool Roof Rating Council (CRRC) or ENERGY STAR. Check with your local utility provider before starting the project since some rebates require pre-approval. Learn more about cool roofing systems and how they can work with your home’s design.

Federal Tax Credit for a New Roof: How to Claim It

Filing for a federal tax credit for a new roof claim isn’t as hard as it sounds. Here’s a step-by-step breakdown:

Step 1: Save All Documentation

Keep copies of:

• Contractor invoices
• Product certifications (Manufacturer’s Certification Statement)
• Proof of payment
• Installation dates

Step 2: Confirm Product Eligibility

Ask your roofing contractor for written confirmation that the materials meet IRS and ENERGY STAR requirements. Reputable roofers should provide this without hesitation.

Step 3: File IRS Form 5695

When you file your 2025 taxes, complete Form 5695 (Residential Energy Credits) and attach it to your Form 1040. The form walks you through calculating your credit based on qualifying expenses.

Step 4: Consult a Tax Professional

A quick check with a CPA can help you avoid errors and make sure you claim every dollar you’re entitled to. A federal tax credit for a new roof claim can add up fast when paired with other energy-efficient upgrades.

ENERGY STAR Roof Shingles Tax Credit: What’s Changed

The Energy Star roof shingles tax credit rules have shifted in recent years. Previously, ENERGY STAR-rated asphalt and metal shingles qualified for a standalone tax credit. That specific credit expired, but ENERGY STAR shingles still help reduce your energy bills and may qualify under broader energy-efficient home improvement categories.

What to Look For in Qualifying Shingles

• Solar reflectance of at least 0.25 for steep-slope roofs
• CRRC or ENERGY STAR certification
• Cool-rated pigments or coatings
• Proper installation by a certified roofing contractor

Even without a direct Energy Star roof shingles tax credit, installing these shingles can qualify you for state and utility rebates. Plus, you’ll enjoy lower energy bills for years to come, which adds up to major savings over the life of your roof.

State and Local Incentives You Shouldn’t Miss

Beyond federal programs, many states and cities offer their own incentives for energy-efficient roofing. These often stack with federal credits, giving you double the savings.

Common Local Programs

• Property tax exemptions for solar roof installations
• Sales tax exemptions on ENERGY STAR products
• Utility company rebates for cool roofs and insulation upgrades
• Low-interest loans or PACE financing for energy improvements

Where to Find Them

• DSIRE.org – Database of State Incentives for Renewables & Efficiency
• Your state’s energy office website
• Local utility company rebate pages
• City or county sustainability programs

If upfront costs are still a concern, explore roof replacement financing options to spread payments while you wait for tax credits and rebates to come through.

Tips to Maximize Your Roof Replacement Savings

Getting the most out of your roof replacement tax credit and rebate opportunities takes a little planning. Here are some smart moves:

1. Bundle upgrades. Combine your roof replacement with insulation, solar, or window upgrades to hit multiple credit categories in one project.
2. Time your project wisely. Some rebates have annual funding caps that run out fast. Apply early in the year when possible.
3. Work with certified contractors. Choose a roofing company familiar with tax credit requirements and product certifications.
4. Keep every receipt. Documentation is everything at tax time.
5. Ask about manufacturer rebates. Some roofing brands offer their own promotions in addition to government incentives.

Following these steps can turn what feels like a costly project into a much more affordable investment.

Common Mistakes to Avoid

Even the best plans can go sideways. Watch out for these pitfalls:

• Assuming all roofs qualify. Only specific materials and systems meet the criteria.
• Missing filing deadlines. File your Form 5695 with your 2025 tax return.
• Skipping the Manufacturer’s Certification. Without it, the IRS may deny your claim.
• Overlooking local programs. Federal credits are just one piece of the puzzle.
• Not checking rebate pre-approval requirements. Some programs won’t pay out if you didn’t apply before installation.

A little research upfront prevents big headaches later.

Ready to Save on Your Roof Replacement?

At Brandon J Roofing, we help homeowners get more from their roofing investment. Our team stays up to date on the latest tax credits, rebates, and energy-efficient roofing options so you never miss out on savings. From cool roofs to solar-ready installations, we handle every detail with care, honesty, and craftsmanship you can trust.

Whether you’re replacing an aging roof or upgrading for energy savings, we’re here to guide you every step of the way. Our client-first approach means clear communication, quality materials, and reliable results.

CONTACT OUR TEAM