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.