Can You Claim the IRS Solar Tax Credit for Roof Replacement?

Installing solar panels can be a significant investment, but the federal solar tax credit helps offset some of the costs. Homeowners often wonder if replacing their roof as part of the installation qualifies for the credit. Since roofs support solar energy systems, it’s important to understand which expenses are eligible.

The tax credit covers certain costs directly related to solar panel installation, but not all roofing expenses qualify. Understanding how the IRS treats roof replacements under this incentive ensures homeowners maximize savings while staying compliant with tax regulations.

Where the Credit Applies

The federal solar tax credit, officially known as the Investment Tax Credit (ITC), applies to expenses directly tied to installing a solar energy system. Under Internal Revenue Code Section 25D, homeowners can claim a percentage of qualified costs as a credit against their federal income tax liability. This includes solar panels, inverters, mounting equipment, and wiring, but the eligibility of roofing expenses depends on whether the work is necessary for the solar installation.

The IRS distinguishes between general home improvements and modifications essential for solar panels. If a roof replacement is for maintenance or aesthetic reasons, it does not qualify. However, if specific roofing materials or structural changes are required to support the solar panels, those costs may be eligible. For example, solar shingles or tiles that generate electricity are considered part of the solar energy system. Similarly, if a section of the roof must be reinforced to support the weight of the panels, that portion of the expense may be covered.

Partial Versus Full Replacement

The extent of roof work affects whether any portion of the cost qualifies for the tax credit. A full roof replacement is considered a home improvement and does not qualify. However, if only a portion of the roof is modified specifically for the solar installation, that segment may be included.

For example, if solar panels require a section of the roof to be rebuilt with specialized materials that enhance energy production or provide structural support, those costs could be considered part of the solar project. This is particularly relevant when installing solar-integrated roofing solutions, such as photovoltaic shingles, where the roofing material itself functions as part of the energy system. In such cases, the IRS may allow a proportional share of the roofing expense to be claimed.

Timing also matters. If a homeowner replaces their roof independently and later installs solar panels, the roof work is unlikely to qualify. However, if roofing modifications are done alongside the solar installation and are necessary for its functionality, there may be a stronger case for inclusion. Proper documentation is necessary to demonstrate that roofing expenses are directly tied to the solar project rather than general home maintenance.

Calculating Qualified Expenses

Determining which roofing costs qualify for the federal solar tax credit requires a careful breakdown of expenses. Only costs directly related to installing and operating the solar energy system can be included. Homeowners must separate general roofing expenses from those necessary for the solar project.

Materials

The cost of materials used in a roof modification may qualify if they are essential for the solar installation. For example, if a homeowner installs solar shingles or tiles that generate electricity, these materials are considered part of the solar energy system and are eligible for the tax credit. However, traditional roofing materials such as asphalt shingles, clay tiles, or metal panels that do not contribute to energy production are not covered.

In cases where a specific type of roofing material is required to support the solar panels, a portion of the cost may be included. For instance, if a reinforced roofing membrane is necessary to prevent heat damage or provide structural stability for the solar array, that expense could be considered part of the solar project. Homeowners should retain invoices that clearly separate standard roofing materials from those directly related to the solar installation.

Labor

Installation costs for solar panels and any associated labor required to integrate them with the roof are eligible for the tax credit. This includes work performed by electricians, solar contractors, and specialists needed to secure the system. If a roofing contractor is hired specifically to install solar shingles or make structural modifications necessary for the solar panels, their labor costs may also be included.

However, general roofing labor—such as removing old shingles, replacing underlayment, or installing a new roof that is not directly tied to the solar system—does not qualify. If a homeowner replaces their entire roof and then installs solar panels, only the labor costs directly associated with the solar installation can be claimed. Homeowners should request itemized invoices that distinguish between general roofing work and solar-related labor.

Structural Upgrades

Some homes require structural modifications to support the weight of a solar energy system. If these upgrades are necessary for installation and operation of the solar panels, they may be considered a qualified expense. This can include reinforcing roof trusses, adding support beams, or upgrading the roof deck to handle the additional load.

For example, if an engineer determines that a home’s existing roof structure cannot safely support the solar panels and recommends additional bracing, the cost of those reinforcements may be eligible for the tax credit. However, if a homeowner upgrades their roof structure for reasons unrelated to the solar installation—such as improving overall durability or preparing for future renovations—those costs would not qualify. Proper documentation, including engineering reports and contractor invoices, is essential to demonstrate that the structural upgrades were necessary for the solar system.

Documenting the Expenditures

Maintaining thorough records is necessary when claiming the federal solar tax credit. The IRS requires clear evidence that expenses are directly tied to installing a qualifying solar energy system. The most reliable way to substantiate a claim is through itemized invoices and contracts that detail each cost. Receipts from contractors, suppliers, and installers should distinguish between solar-related expenditures and unrelated home improvements.

Beyond invoices, homeowners should retain technical specifications and manufacturer certifications for any solar components purchased. The IRS may request proof that materials meet the necessary criteria under Internal Revenue Code Section 25D, particularly in cases where roofing materials integrate solar technology. Additionally, contracts with installation companies should specify the scope of work performed, especially when structural modifications are involved. If a project includes enhancements beyond the solar installation, obtaining a breakdown of costs clarifies which portion qualifies for the credit.

Filing Requirements

Claiming the federal solar tax credit requires homeowners to follow specific IRS procedures when filing their tax return. The credit is reported on IRS Form 5695, which calculates the total eligible expenses and determines the amount that can be applied against the taxpayer’s federal income tax liability. This form must be attached to Form 1040 when filing, and any unused portion of the credit can typically be carried forward to future tax years.

When completing Form 5695, homeowners must ensure that only qualifying expenses are included. This means carefully distinguishing between solar-related costs and general home improvements. The IRS may request supporting documentation, so taxpayers should retain all relevant records, including invoices, contracts, and proof of payment. Ensuring accuracy in reporting is important, as errors could lead to delays or potential audits. Consulting a tax professional can help confirm compliance with IRS guidelines and maximize the benefits of the credit.