Can I claim on form 5695 a credit for the roof replacement which was required to install solar panels?
No.
Certain solar panel configurations, where the electricity-producing device is also a structural part of the roof, qualify for the credit and are not disqualified because they are also structural. But the roof structure, including upgrades that might be required to support the weight of a solar system, are not eligible.
https://www.irs.gov/pub/taxpros/fs-2022-40.pdf
Are roofing expenditures that were necessary for the installation of solar panels eligible for the Residential Clean Energy Property Credit? (added December 22, 2022)
A2. In general, traditional roofing materials and structural components do not qualify for the Residential Clean Energy Property Credit because they primarily serve a roofing or structural function. However, some solar roofing tiles and solar roofing shingles serve as solar electric collectors while also performing the function of traditional roofing, serving both the functions of solar electric generation and structural support and such items qualify for the credit.
Reply to Champ:
In https://www.irs.gov/pub/taxpros/fs-2022-40.pdf under the section on Labor Costs,
When calculating the Residential Clean Energy Property Credit, a taxpayer may include the labor costs properly
allocable to the onsite preparation, assembly, or original installation of the qualified property and for piping or
wiring to interconnect the qualifying property to the home.
So back to the original post about credit for roof replacement, would the labor to replace the roof decking to support the panels be applicable on Fed. Form 5695?
@harveykatz wrote:
Reply to Champ:
In https://www.irs.gov/pub/taxpros/fs-2022-40.pdf under the section on Labor Costs,
When calculating the Residential Clean Energy Property Credit, a taxpayer may include the labor costs properly
allocable to the onsite preparation, assembly, or original installation of the qualified property and for piping or
wiring to interconnect the qualifying property to the home.
So back to the original post about credit for roof replacement, would the labor to replace the roof decking to support the panels be applicable on Fed. Form 5695?
no, because the roof improvement itself is not allowed.
Basically, the allowable cost is what it would have cost to install the solar panels on a structurally sound and adequate roof (parts and labor). The costs to make the roof structurally sound (materials or labor) are not allowed for the credit. If your contract does not specify the costs in this way, ask your contractor for a different breakdown, or make a reasonable allocation on your own (if audited, you can be asked to explain your reasoning).