Residential Energy Credits: Help To Go Green – Zing! Blog by Quicken Loans

Residential Energy Tax Credit FAQs

There are many frequently asked questions (FAQs) around residential energy tax credits. Some of the most common include:

Do I Get A Credit For Replacing My Roof?

If you choose to make roof replacements or repairs, they are eligible for a credit only to the extent that the materials used in these repairs or replacements qualify. By way of example, materials such as solar panels, roofing tiles, and shingles qualify, but any improvements made to the structure of the roof not specifically linked to energy-efficiency are not eligible for the tax credit.

Are There Other Sources Of Rebates Or Credits?

With an ever-growing number of government agencies, cities, counties, and homeowners pushing to go green, the short answer is absolutely. In fact, many state and local governments, as well as many manufacturers, offer credits and rebates to make the high cost of energy improvements more affordable.

Does The Credit Affect My Cost Basis In The Home?

Any tax credit received will reduce the cost basis that you hold in your home. In other words, if you should choose to sell your house at a later date, you must subtract the dollar amount that you have earned in residential energy tax credits from your cost basis.

Source: https://www.quickenloans.com/learn/residential-energy-credit

July 10, 2021 Mary Sparks