We have to replace our roof. How does the $1500 metal roof credit work. I understand I need to keep my receipts and have checked with Menards to see which roofing qualifies. Does this credit come directly off of the taxes we owe or do we get a percentage of the $1500 depending on our tax bracket? Thank you, XXXXX XXXXX
Hello mwilliams, The energy credit for qualifying metal roofs is a direct credit against the tax you owe for the year. The credit is the same for all taxpayers, regardless of your income bracket. On a qualifying metal roof purchase, you are allowed to claim a credit of 30% of the total price you paid, up to a maximum of $1,500. So if you pay $5,000 for the roof, you would claim the maximum credit of $1,500. If you pay more than $5,000, your credit is still limited to the $3,000 allowed limit. For roofs that cost less than $5,000, your credit is limited to 30% of the actual purchase price. If this was helpful please press the Accept button. Positive feedback is also appreciated. Thank you mwilliams.
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
Sorry, I just noticed a typo in my response to you. It should have said "If you pay more than $5,000, your credit is still limited to the $1,500 allowed limit" Sorry for the confusion.