Yes, you can include the costs of the roof.
If you made energy saving improvements to more than one home that you used as a residence during 2017, enter the total of those costs on the applicable line(s) of Form 5695.
You may be able to take a credit of 30% of your costs of qualified solar electric property and solar water heating property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home.
Per the IRS Instructions for Form 5695:
For further information, please see the instructions for IRS Form 5695 at the following link: https://www.irs.gov/instructions/i5695
Hello - We have the exactly the same scenario. Question 1: the 30% of the cost of the qualified solar electric property would include the solor system (materials & labor) as well as the new roof.Question 2: Can we claim the entire new roof or only the portion holding the solar panels? We are yearly turbo tax useres.
Yes, you can include the costs of the roof.
If you made energy saving improvements to more than one home that you used as a residence during 2017, enter the total of those costs on the applicable line(s) of Form 5695.
You may be able to take a credit of 30% of your costs of qualified solar electric property and solar water heating property. Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the residential energy efficient property and for piping or wiring to interconnect such property to the home.
Per the IRS Instructions for Form 5695:
For further information, please see the instructions for IRS Form 5695 at the following link: https://www.irs.gov/instructions/i5695
This answer seems to conflict with the same question asked 6 months ago entitled "Could I claim the 30% federal solar tax credit for portion or all cost related to a re-roof if I get new solar panels?" which says the roof does not apply. Can you confirm which advice is correct? I'm planning to install solar panels in 2018 and require a new roof to support the new solar structure. I would like to know if the roof and its installation will qualify for the 30% Energy Credit (along with the solar panels).
I think the problem is that the following IRS Statement offered, in response to the question, is a double negevite: "No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed." My spouse & I read this as "no costs relating to....will fail to qualify" therefore it sounds, to us, like the roof qualifies. Hopefully Turbo will weigh in.
Please clarify. Some contractors are claiming the roof expense would quality if it has the reflective coating, but my reading of the instructions says I would only be able to take a credit under the Nonbusiness Energy Property Credit in form 5695 line 19c which is used to calculate at most a 10 percent credit. And this is further limited by the need to not include costs for "onsite preparation, assembly, or original installation of the components", whatever that actually means. I do not know if that means you cannot include the cost of stripping off the old roof, or the cost of actually installing the shingles on the decking.
I have to admit that to me, the instructions seem to be misleading, and I don't trust the sentence "No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed..." I have a client who had to replace his entire roof and the contractor also told him if he installs solar panels he can claim the entire roof, however the roof is very large and the panels would only make up about a quarter of the entire roof. There is nothing special about the roof that it had to be replaced soley to accommodate the solar panels.
It concerns me that the recommended answer is "Yes" based on all things and I am not convinced that, should the client get audited, the roof would be disallowed. I called the IRS preparer hotline, and since it is not tax filing season yet, they are not answering tax guidance and reference the website. Which brings me back to the ambiguity of the rules. It seems the roof would be an energy credit, limited to the $500 and the 30% would only apply to the solar portions. If anyone can shed further light on what I'm interpreting here, please weigh in? I am struggling with advising my clients to proceed with the project since his decision is based on including the roof in the credit.
Please be aware that TT is not licensed for use by paid tax preparers.
I have to admit that I am not convinced the roof should be included in the 30% credit. The sentence, "No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed..." is misleading to me. I have a client who had to put on an new roof. His house is 150ft long, so it's a lot of roof! The panels would make up about a quarter of that. There is nothing special about the roof except it's new and better. I am concerned that if he was audited, the roof would be disallowed, and only applicable to the 10% energy credit that is capped at $500. I welcome any input please. His contractor told him that the roof can be included, but again, I'm not comfortable that he's correct. I called the IRS tax preparer hotline, but they don't field tax guidance questions when it's not tax season, and the recording tells you to look on their website, which brings me back to the beginning. Thank you for any light anyone can shed on this for me. I appreciate it very much.
I too would like to know. I have a wood shake roof which solar panels cannot be installed on. I am going to change my roof to composite shingle and install solar panels. Can I claim the tax credit on my entire roof or only a portion the solar panels will be installed on? Also, how soon after the new roof is put on, do the solar panels have to go on for the tax credit to be valid? I am planing to spend a couple months to research my solar options before having the panels installed.
The cost of re-shingling a roof merely because it is convenient to do so does NOT get factored into the Solar Credit.
The cost of structurally reinforcing a roof would be factored in, and the cost of specialized highly reflective shingles that are designed to enhance the solar panel output would be factored into the credit.
Kenley makes an interesting point. If it is IMPOSSIBLE to install the solar panels without replacing the wood shake roof, that could possibly make a good argument for including it in the credit.
@mvmtax If you are a Lacerte user, you should post on that forum (I'm a ProSeries user):
<a rel="nofollow" target="_blank" href="https://accountants-community.intuit.com/">https://accountants-community.intuit.com/</a>
This same question is addressed in another thread (https://ttlc.intuit.com/community/state-taxes/discussion/re-could-i-claim-the-30-federal-solar-tax-credit-for-portion-or-all-cost-related-to-a-re-roof-if-i/01/1428086#M65039), and I believe that @CA Solar Expert and @BMcCalpin were spot on in their analysis of the underlying tax code (from which the wording in the instructions that is being used to justify including the roof is pulled). Their conclusion, and my own: the roof would not qualify unless you're considering solar shingles or other such solar harnessing material as the roof itself.
I agave the same situation except that in my situation the Roof was replaced in 2021 and the solar panels installed in 2022 (the solar panels couldn’t be installed in the older roof as it was deemed too old for that). Can I still include the roof replacement cost of 2021 as part of the 2022 solar panel cost/credit? (Notice the year difference). Also if I have claimed the roof by itself in the 2021 return ($500 credit as part of the home energy improvement credit) should I file an amendment to the 2021 to remove it from there since it’s now accounted for in the 2022 solar credit?
According to the IRS, traditional roofing materials and structural components do not qualify for the installation credit for solar panels.
This is not longer accurate for 2023 and should be flagged as such!
This should be updated first to include the entire paragraph that makes it clear a traditional roof is not included and second, that if you roof as both solar and structural components then the cost can be included.
Qualified solar electric property costs.
Qualified solar electric property costs are costs for property that uses solar energy to generate electricity for use in your home located in the United States. No costs relating to a solar panel or other property installed as a roof (or portion thereof) will fail to qualify solely because the property constitutes a structural component of the structure on which it is installed. Some solar roofing tiles and solar roofing shingles serve the function of both traditional roofing and solar electric collectors, and thus serve functions of both solar electric generation and structural support. These solar roofing tiles and solar roofing shingles can qualify for the credit. This is in contrast to structural components such as a roof's decking or rafters that serve only a roofing or structural function and thus do not qualify for the credit. The home doesn't have to be your main home.