New IRS rules for 2025 mean more homeowners can qualify for the Energy Efficient Home Improvement Credit. Learn if your new roof, insulation, or windows now qualify for $1,200–$3,200 back.

Fixing your roof might not be fun, but a tax credit sure helps. 🛠️ New IRS rules could put money back in your pocket for energy-efficient upgrades like this one.

The IRS Just Made It Easier to Get a Tax Credit for Your New Roof (Here’s How)

If you’ve been putting off replacing that old roof or upgrading those drafty windows because of the cost, the IRS might have just given you a reason to move forward.

In a little-noticed update this week, the agency expanded the types of home improvements that qualify for the Energy Efficient Home Improvement Credit, a tax break that lets you claim up to $3,200 back on your federal taxes.

While the credit itself isn’t new, the list of what qualifies just got a lot more helpful for regular homeowners.

What Exactly Changed?

The IRS released new guidance that clarifies, and importantly, broadens, which specific products are eligible under the tax code’s Section 25C.

Originally aimed at things like energy-efficient doors and solar panels, the credit now clearly includes:

  • Certain “Cool Roofing” Products: Specifically, roofs designed to reflect more sunlight and absorb less heat, meeting updated ENERGY STAR® criteria.
  • Added Insulation: More types of insulation and air-sealing materials now qualify, especially those that improve overall thermal efficiency.
  • Building Envelope Materials: This includes items like energy-efficient windows, skylights, and storm doors that reduce energy loss.

It might sound technical, but the takeaway is simple: more home upgrades now qualify for a tax credit than ever before.

How Much Can You Actually Get Back?

Here’s the breakdown of what you can get:

  • 30% of the cost of eligible home improvements back in the form of a tax credit.
  • Up to $1,200 per year for most upgrades like insulation, windows, and doors.
  • Up to $2,000 per year for qualifying heat pumps, biomass stoves, or water heaters.
  • That means you could potentially claim up to $3,200 in total credits per year if you do multiple projects.

This isn’t a deduction. It’s a dollar-for-dollar credit—meaning it reduces what you owe the IRS, directly.

Who Qualifies?

  • You must own your home in the U.S.
  • It must be your primary residence (rental and investment properties don’t count).
  • The improvements must be made in 2025.
  • The products must meet IRS energy efficiency standards (your contractor can confirm this).

Your Step-by-Step Guide to Claiming the Credit

  1. Check Eligibility: Before buying anything, visit the ENERGY STAR® product list to see if the product you want is certified.
  2. Save All Paperwork: Keep copies of:
    • Itemized receipts
    • Manufacturer certification statements (often available on product packaging or websites)
    • Proof of installation date
  3. File IRS Form 5695 when you do your 2025 taxes next year.

A Word of Caution

  • This is a tax credit, not an instant rebate. You’ll receive the benefit when you file your return.
  • You must owe taxes to benefit—it’s non-refundable, but it can carry forward.
  • Always consult a tax professional if you’re unsure about your eligibility.

The Bottom Line

This change might not make headlines on the evening news, but for homeowners planning repairs, it’s a big deal. If you need a new roof, better insulation, or updated windows, doing it this year could put hundreds or even thousands of dollars back in your pocket.

It’s a rare win: you improve your home, lower your energy bills, and get a tax break. Not a bad deal.

Disclaimer: I am not a tax professional or financial advisor. This article is for educational purposes only. For advice specific to your situation, please consult a qualified tax preparer or CPA.