Understanding New Roof Tax Credits
Are you looking for information about getting new roof tax credits? Maybe your old roof has been leaking and you’ve finally decided to have it replaced. Someone told you about how you were eligible for new roof tax credits which could save you some cash. Well, here is some of the important information you need in order to assess if you are indeed eligible for tax credits, and if so, what you should do in order to claim them.
Home owners like you are constantly seeking for ways to ease the burden of having a new roof installed. With supplies and labor growing costlier by the day, the expense of getting a new roof has become quite significant and not everyone can afford it comfortably. New roof tax credits can help subsidize your cost of renovations or roof repair.
Federal government offers tax credits in exchange for home owners keeping their buildings safer and stronger. It benefits the government indirectly by way of creating a safe resource instead of a potential dangerous hazard zone. In 2010, the Federal government offered a $1,500 tax credit for new roofs. These credits however are constantly and dynamically changing every year, so be sure to check on the most recent data before making your decision.
What to do in order to get new roof tax credits?
First, discuss the proposed plan for your new roof with your contractor and make detailed plans. When you know whether you are eligible for tax credits and the nature of this eligibility, you must then see if the proposed plans fit the requirements to claim your rebate. In case the contractor is unable to help you, contact your tax adviser. The Energy Star website also carries recent information pertaining to new roof tax credits and you are well advised to study it for details.
Once you have confirmed the eligibility and nature of your new roof tax credits, ask your contractor for an itemized description of the materials and plans for your new roof. The list should cover both materials and labor costs. This information goes on your tax forms, so be meticulous about the details you collect. There will be a cap on each component of the cost, typically 10%, and so you won’t be able to maximize your new roof tax credits unless you get this step right.
After the job is finished, you must submit a claim in the form of your IRS Form 5695. There are specific sections for claiming your tax credit for new roofing. Make sure that the information you submit is in the appropriate format so that you don’t later run into trouble with the tax authorities. Consult your accountant or adviser about doing this and make sure that you have the latest version of the correct form.
Most tax credits for new roofs are offered by the government in order to enhance energy efficiency of a building. Getting a new roof will qualify because of the energy savings that are attendant upon a better insulated roof which protects the building better. Energy needs and costs will therefore drop, a desirable end point which is the reason for your new roof tax credits.