Everyone wants to make home renovations affordable and tax deductions help, but it’s hard to find ones that apply. As one of the leading roofing companies in Savannah, we have put together this list to help. Note, however, that the information in this article is intended to be a starting point only. Always speak to a tax professional when assessing possible deductions or making tax-related decisions.
With a few exceptions, home improvements cannot be used as a tax deductions, but can still save you on taxes when you sell by adding to its basis. This subtracts from the profit of its sale, allowing you to pay taxes on a smaller gain.
The conditions that allow a home improvement to be used as a tax deduction are: renovating to make medically needed adjustments (putting in a ramp if required for a wheelchair, for example), or making your home more energy efficient.
National Credits Available
Non-Business Energy Property Credit
This is designed to help homeowners increase energy efficiency. It is a tax credit at a rate of 10% of costs that meet requirements. It covers equipment only on insulation, windows and doors, skylights, storm fixtures, and insulating roofing. It covers equipment and installation for heat pumps, boilers, furnaces, central air and biomass stoves. Items have specific efficiency minimums to qualify. There is a lifetime limit of $500 which is broken down into item limits that range from $50 to $300.
Residential Energy Efficient Property Credit
This includes 30% of equipment costs for solar power, solar water heating, small wind energy and geothermal heat pumps. It is unique in that it does not have a lifetime or yearly limit and unused portions carry forward to the next year. Like most other efficiency credits, items are subject to specific requirements. It also covers fuel cells to a maximum of $500 per .5kW capacity. For information on federal tax credits visit the incentive program and energy tax credit resources from NC state university.State
Clean Energy Property Credit
This allows 35% of equipment and installation of clean energy systems of different types. There is currently a waiting list for this credit due to its large size, but it is worth inquiring about.
For more Georgia state programs, visit the Database of State Incentives for Renewables & Efficiency.
A Roofing Credit?
Homeowners are happy to hear that energy-efficient roofing, installed by Dec 31, 2014, are eligible for a tax credit, as well. There are many specifications, so be sure to check with both your roofing contractor and your tax adviser!
At Tri County Roofing & Siding, we offer a 48 hour response time. If you are looking for the best in roofing companies in Savannah, contact us today.[button link=”https://www.tricoexteriors.com/roof-replacement/” target=”self” color=”#b20000″ text=”light”]Roof Replacement Services Offered[/button]