Energy-Efficient Roof Tax Credits in 2026: What Homeowners Need to Know

Most homeowners replacing a roof are focused on cost, contractor selection, and materials. What many don’t realize is that the federal government will send them a check — well, a tax credit — for choosing the right product. If your new roof qualifies as an energy-efficient “cool roof” under the Inflation Reduction Act, you can claim 30% of the material cost back on your federal taxes, up to $1,200 for the year across all qualifying home improvements.

This guide explains exactly which roofing products qualify, how much you can actually save, and how to claim the credit without leaving money on the table.

What Is the Energy Efficient Home Improvement Credit?

The Energy Efficient Home Improvement Credit (sometimes called the Section 25C credit) was revamped by the Inflation Reduction Act of 2022. It replaced the old nonbusiness energy property credit, which had a measly $500 lifetime cap and a 10% rate.

Under the new rules, which apply to qualifying improvements made between January 1, 2023 and December 31, 2032:

Credit rate: 30% of the cost of qualifying materials and installation
Annual cap: $1,200 per year across all Section 25C improvements combined
Lifetime cap: None — you can claim up to $1,200 every year through 2032
Refundable? No — this is a non-refundable credit, meaning it reduces your tax liability but won’t generate a refund if your credit exceeds what you owe

The annual reset is the biggest improvement over the old program. Under the prior rules, a homeowner who’d ever claimed the credit before was shut out. Now you can claim it every year, across different projects over the decade.

Does Your New Roof Qualify?

Not every new roof qualifies. The credit is specifically for cool roof products — roofing materials engineered to reflect more sunlight and absorb less heat than a standard roof.

To qualify, a roofing product must meet one of the following:

For asphalt shingles: The shingles must be ENERGY STAR certified and meet the following reflectance and thermal emittance values:

Initial solar reflectance ≥ 0.25
Initial thermal emittance ≥ 0.75
OR a Solar Reflectance Index (SRI) ≥ 16

For metal roofing: Metal roofs with appropriate pigmented coatings that meet ENERGY STAR’s roofing requirements. Many metal roof products qualify, particularly those with light-colored or reflective finishes.

Important nuance: Installation labor does not qualify for the credit — only the materials cost is eligible. If your contractor charges $15,000 for a re-roof and $4,000 of that is qualifying shingles or metal roofing, the credit is 30% × $4,000 = $1,200.

How to Verify Your Product Qualifies

The ENERGY STAR Roof Products database (available on the ENERGY STAR website) is the authoritative list. Before you buy:

Search your specific shingle product or metal roofing product in the ENERGY STAR database
Confirm it’s listed as qualifying for the federal tax credit
Ask your manufacturer for the Manufacturer Certification Statement — you’ll need this to claim the credit
Keep your receipt and the certification with your tax records

Your roofing contractor may be familiar with qualifying products and can guide you toward ENERGY STAR-eligible options if you ask.

How Much Can You Actually Save?

The math depends on your project specifics. Here are a few realistic scenarios:

Scenario 1: Asphalt cool roof on a 2,000 sq ft home

Qualifying material cost: ~$3,500 (ENERGY STAR asphalt shingles)
30% credit: $1,050
Net tax savings: $1,050 (assuming you owe at least that in federal taxes)

Scenario 2: Standing seam metal roof

Total installed cost: ~$22,000
Qualifying material cost: ~$12,000 (metal panels and accessories)
30% of material cost: $3,600
Credit cap: $1,200 (the annual cap limits your credit to $1,200 even if 30% would be higher)

Scenario 3: Cool roof + other improvements in the same year

The $1,200 annual cap covers all Section 25C improvements combined. If you also upgraded your HVAC system, added insulation, or installed new windows in the same tax year, those improvements count against the same $1,200 cap.

Improvement	Cost	30% Credit	Counts Against $1,200 Cap
Cool roof shingles	$3,500	$1,050	Yes
Insulation	$2,000	$600	Yes
Combined credit	—	$1,650 → capped at $1,200	—

If you’re planning multiple efficiency upgrades, think about whether to spread them across two tax years to maximize the annual credit on each.

Which Products Are Most Likely to Qualify?

ENERGY STAR Asphalt Shingles

Several major shingle brands have ENERGY STAR-certified products in their lineup. Look specifically for products marketed as “cool roof,” “solar-reflective,” or “ENERGY STAR certified.” Light and medium-tone colors typically qualify more easily than dark shingles, which absorb more heat.

Brands to ask about:

GAF Timberline Cool Series — reflective asphalt shingles in select color ranges
CertainTeed Landmark Solaris — designed for heat reduction with ENERGY STAR certification
Owens Corning Duration Cool — part of OC’s energy-efficient product range

Always verify the specific product and color are certified — not all colors in a qualifying product line meet the reflectance threshold.

Metal Roofing

Metal roofs are natural candidates for cool roof certification because metal reflects heat inherently well, especially with appropriate coatings. Products to evaluate:

Standing seam metal roofs in light colors (white, light gray, beige) with PVDF or SMP coatings
Aluminum roofing with factory-applied reflective finishes
Steel panels with cool-roof certified coatings

Dark-colored metal roofs may not qualify, even though they’re still more reflective than asphalt. Check the ENERGY STAR database by specific product code.

What Typically Does NOT Qualify

Standard architectural asphalt shingles in dark colors (most popular shingle choices fall into this category)
Wood shake roofing
Slate or synthetic slate
Standard concrete or clay tile (though some lighter-colored tile may qualify — check the database)
Flat/low-slope roofing membranes (these have a separate ENERGY STAR category with different thresholds)

How to Claim the Credit

Claiming the Section 25C credit is straightforward if you’ve kept your paperwork:

Keep your receipts — you need documentation of the qualifying material cost
Get the Manufacturer Certification Statement — the product manufacturer provides this document confirming the product qualifies for the Section 25C credit; your contractor or the manufacturer’s website should have it
File IRS Form 5695 — the Residential Energy Credits form, attached to your federal return; enter the qualifying cost in Part II
Calculate your credit — 30% of the qualifying material cost, limited to $1,200 for the year
Apply it to your tax liability — the credit directly reduces what you owe; if your tax liability is lower than the credit, you cannot carry the remainder forward (it is non-refundable)

You do not need to itemize deductions to claim this credit. It works on top of the standard deduction.

Record-keeping tip: Create a folder (physical or digital) labeled with the tax year containing your roofing invoice, the Manufacturer Certification Statement, and Form 5695 once filed. The IRS rarely asks for these documents, but having them organized protects you in an audit.

State and Utility Incentives: Stacking Additional Savings

Federal isn’t the only game in town. Many states and utilities offer additional rebates or credits for energy-efficient roofing, and in most cases these can be combined with the federal credit.

State tax credits: California, New York, Maryland, and several other states have their own energy efficiency credit programs for homeowners. Check the DSIRE database (Database of State Incentives for Renewables and Efficiency) at dsireusa.org for your state.

Utility rebates: Some electric utilities offer direct rebates for installing cool roofs because they reduce summer peak demand. These are typically $0.05–$0.20 per square foot. A 2,000 sq ft roof could qualify for a $100–$400 rebate directly from your utility — modest, but free money is free money.

Insurance discounts: In some markets, energy-efficient or impact-resistant roofing products overlap (a cool metal roof may also be Class 4 impact-rated), opening the door to both a tax credit and a homeowners insurance premium discount. See our guide on impact-resistant shingles for details on that angle.

Common Mistakes That Cost Homeowners the Credit

Buying a non-qualifying product and assuming it qualifies. The ENERGY STAR certification is product-specific and sometimes color-specific. Dark charcoal architectural shingles — the most popular shingle choice in the country — almost never qualify. Verify before you buy.

Forgetting to get the Manufacturer Certification Statement. This document is your proof of qualification. Without it, you’re claiming the credit on faith and have no defense if audited. Ask your contractor to provide it, or download it from the manufacturer’s website for the specific product and color.

Including installation labor in the credit calculation. The IRS allows 30% of material cost only. Including labor inflates your credit claim and is incorrect.

Not accounting for the $1,200 cap when planning multi-upgrade years. If you’re replacing a roof and upgrading HVAC in the same year, you’re likely leaving credit on the table that you could have captured by splitting improvements across tax years. A brief conversation with your tax preparer before major projects can save you real money.

Waiting to ask until after installation. Product choice drives whether you qualify. The time to ask about ENERGY STAR certification is before you sign the roofing contract — not after the tear-off.

Is It Worth Choosing a Qualifying Product for the Credit Alone?

That depends on the cost premium. ENERGY STAR-certified cool roof shingles typically cost 5–15% more per square than comparable standard shingles. For a 2,000 sq ft roof using standard architectural shingles:

Standard shingles: ~$2,500 in material
ENERGY STAR certified: ~$3,000–$3,200 in material
Premium paid: ~$500–$700
Federal credit on qualifying material: ~$900–$960

In this scenario, the federal credit more than covers the premium for choosing the qualifying product — and you get a more energy-efficient roof that may reduce summer cooling costs and qualify for utility rebates.

The calculus is even more favorable for metal roofing, where qualifying products aren’t necessarily more expensive than non-qualifying ones in the same category.

The Bottom Line

The Section 25C Energy Efficient Home Improvement Credit is one of the most underutilized financial benefits available to homeowners making major improvements. Up to $1,200 back annually, no lifetime cap, and available through 2032 — the program is designed for exactly the kind of situation homeowners replacing a roof face.

The key is product selection. Choose an ENERGY STAR-certified cool roof product, get the Manufacturer Certification Statement before installation, keep your receipts, and file Form 5695. Done right, this is essentially free money from the federal government for making a smarter roofing choice.

Before signing any roofing contract, spend ten minutes verifying whether the proposed product qualifies. If it doesn’t, ask your contractor whether a qualifying alternative is available for a similar price. That single conversation could put over $1,000 back in your pocket come tax time.