GAF Timberline HDZ Tax Credit: How to Qualify and Claim It
Learn how to qualify for and claim the GAF Timberline HDZ tax credit, including eligibility requirements, documentation, and filing steps for potential savings.
Home improvements can offer tax benefits, particularly energy-efficient upgrades. GAF Timberline HDZ roofing shingles may qualify for a federal tax credit if they meet energy efficiency standards, helping offset installation costs.
Requirements for Eligibility
To qualify for the tax credit, the property must be a residential home. Rental properties and commercial buildings do not qualify, and the credit applies only to existing homes, excluding new construction.
The installation must be on the homeowner’s primary residence. Second homes and vacation properties are ineligible. The roofing materials must be installed within the tax year for which the credit is claimed. The credit falls under the Energy Efficient Home Improvement Credit from the Inflation Reduction Act of 2022, covering 30% of qualifying material costs, up to an annual limit of $1,200 for all eligible home improvements combined. If credits have already been claimed for other energy-efficient upgrades, the total available for roofing may be reduced.
Product Certification Details
For GAF Timberline HDZ shingles to qualify, they must meet EPA ENERGY STAR® standards, reflecting more sunlight and absorbing less heat than standard shingles. However, not all Timberline HDZ colors meet these standards, so homeowners should verify their selection carries the ENERGY STAR certification.
GAF provides a certification statement confirming qualifying shingles meet performance criteria. While the IRS does not require submission of this statement with tax returns, homeowners should keep it for records in case of an audit.
Expense Documentation
The IRS requires itemized receipts and invoices listing the price of qualifying shingles separately from non-eligible costs like labor and installation fees. If a receipt does not break down these amounts, requesting a revised invoice can prevent filing issues.
Proof of payment, such as bank statements, credit card statements, or canceled checks, should be retained. If the purchase was financed, loan statements showing disbursements for roofing materials can serve as additional proof. Keeping both digital and physical copies ensures accessibility.
How to File for the Credit
To claim the credit, homeowners must complete IRS Form 5695, which calculates the credit amount based on qualifying material costs. The final figure is entered on Schedule 3 of Form 1040 to reduce tax liability. Since this is a nonrefundable credit, it can lower taxes owed but does not generate a refund if it exceeds the tax liability.
Form 5695 requires details such as material costs and the applicable credit percentage. If multiple energy-efficient upgrades were made in the same year, the total credit must be allocated accordingly. Consulting IRS guidance or a tax professional can help ensure accuracy.
Recordkeeping for Tax Purposes
Homeowners should retain all supporting records for at least three years from the filing date. In cases of substantial underreporting, records may need to be kept for up to six years.
Documents to keep include the manufacturer’s certification statement, itemized receipts, proof of payment, and a copy of Form 5695. Storing both physical and digital copies in cloud storage or an external hard drive helps prevent loss. If a tax professional assisted in filing, maintaining a copy of their correspondence and calculations can provide additional support in case of an IRS review.