Replacing your roof with a qualifying energy-efficient metal or asphalt roof can cut your cooling bill and earn you a $1,500 tax credit. 

The roof of your house protects against more than rain, sleet and hail.  The sun’s rays beat down relentlessly, especially during summer.  The intense heat can raise the temperature inside your home.  Proper venting and insulation help keep the cool air in and the warm air out.  So, too, do energy-efficient roofing materials, which take the brunt of the solar onslaught.  For homeowners who improve the roofs of their primary residences Uncle Sam is giving a tax credit worth up to $1,500. 

During 2009 and 2010, you can claim a credit for 30% of the cost of qualifying asphalt or metal roofing materials. The credit, which should be taken on IRS Form 5695 for the tax year in which the work is completed, can be split between 2009 and 2010 but can’t exceed $1,500 total for both years. You can’t claim more in credits than you owe in taxes. 

Roof Types – Metal or asphalt shingle 

To qualify for the tax credit, you must use either metal or asphalt roofing materials that are designed to reduce “heat gain”, which is the amount of heat transferred into a home, and meet the requirements of Energy Star, a Federal program that promotes energy-efficient products and practices. Metal roofs must have appropriate pigmented coatings and asphalt roofs must have appropriate cooling granules. Asphalt materials are the traditional shingles, and can be rated to last from 15 years to 30 years.  Energy Star has a list of all of its approved roofing products, but only the metal and asphalt materials may qualify for the tax credit. 

It’s a good idea to keep any manufacturers’ certification statements that attest to the tax credit-worthiness of the roofing materials you purchase.  These can usually be found on product packaging or company websites.  You don’t need to file these with your tax return, but the IRS could ask for them later. Consult a tax adviser. 

Dean Kucharski, a 22-year veteran of the roofing business in Pontiac, Mich., estimates that for a typical 2,200-square-foot home, a mid-range asphalt roof will run about $7,000 to $12,000, including labor. The good news is that it will likely last 20 years or more. For a metal roof, expect to pay twice as much, though it can last for 50 years, he says. If you hire a contractor, get an itemized bill that breaks out the cost of materials since labor doesn’t count toward the tax credit. Materials should account for about half the bill on standard roofing jobs. 

Once you’re ready to select a roof type, either talk to an area building supply company that specializes in roofing materials, or to a competent roofing contractor.  Finding a good roofer entails the same steps as finding any qualified contractor: ask neighbors for recommendations, collect at least three bids, check references, and get everything in writing.  Of course I will be happy to recommend some reliable roofing contractors for you. 

More savings too - on cooling bills 

You’ll get the most bang for your roof-renovation buck if you live in a hot climate like ours.  You can expect to save between 7% and 15% on your cooling costs with energy-efficient roofing materials.  If you pay $300 a month to cool your home, figure you’ll cut your monthly bill by up to $45, which is over $500 per year. 

Ironically, with roofs there is such a thing as being too energy efficient. In winter months, roofing materials with very high heat-deflecting qualities can increase heating bills. However, you’re more than likely to make up the difference on your air-conditioning costs. That’s especially true here in Austin, where you run your air conditioner much of the year. 

Disclaimer: This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.