What Changed: 25C No Longer Covers Roofing
If you have searched for “roofing tax credits 2026,” you have probably encountered a wall of confusing, contradictory information. Dozens of roofing company websites still claim you can get a federal tax credit for installing an ENERGY STAR-rated metal roof or cool-color asphalt shingles. That used to be true. It is not anymore.
The Section 25C Energy Efficient Home Improvement Credit, which previously allowed homeowners to claim a credit for certain qualifying roofing products, no longer includes roofing materials in its list of eligible improvements. The roofing-specific provisions that once covered metal roofs and asphalt roofing with adequate solar reflectance have expired and were not renewed.
This does not mean all roofing-related tax credits are gone. It means you need to understand the distinction between two different sections of the tax code: Section 25C and Section 25D. The difference determines whether your roofing project could save you thousands in tax credits or qualifies for nothing at all.
Common Misconceptions to Avoid
- ✗“ENERGY STAR metal roofs qualify for a $500 tax credit” — This provision expired. No standard roofing material qualifies under 25C.
- ✗“Cool roof coatings are eligible for energy credits” — Reflective coatings save energy but do not qualify for federal tax credits.
- ✗“Any energy-efficient roof gets a 30% credit” — No roofing products qualify for federal credits. The IRA 25D solar credit was eliminated by the OBBB in 2025.
- ✗“You missed your chance for roofing credits” — All federal IRA energy credits were eliminated by the OBBB. Check state programs for current incentives.
Many contractor websites have not updated their content. If you see a roofing company advertising federal tax credits for standard metal or asphalt roofing in 2026, that information is outdated. The rest of this guide walks through exactly what qualifies, what does not, and how to maximize your energy savings regardless of tax credit eligibility.
Section 25C vs 25D: The Critical Difference
The federal energy tax credit landscape for homeowners revolves around two Internal Revenue Code sections. Understanding the difference is essential for any roofing project in 2026.
Energy Efficient Home Improvement Credit
- -Credit rate: 30% of costs
- -Annual cap: $1,200 (general) / $2,000 (heat pumps)
- -Covers: Insulation, windows, doors, heat pumps, water heaters, HVAC, electrical panel upgrades
- ✗Does NOT cover: Roofing materials (expired)
- -Relevance to roofing: Attic insulation upgrades during re-roof
Residential Clean Energy Credit (No Longer Available)
- ✗Status: Eliminated by the One Big Beautiful Bill (OBBB) in 2025
- ✗Previously covered: Solar electric, solar water heating, geothermal, battery storage, fuel cells
- ✗Previous rate: Was 30% with no annual cap
- -Alternative: Check state-level solar incentive programs (SMART, NY-Sun, SRECs, etc.)
The key takeaway for 2026: both Section 25C and Section 25D federal tax credits were eliminated by the One Big Beautiful Bill (OBBB) in 2025. Neither energy-efficient roofing nor solar roofing qualifies for federal tax credits. Homeowners should focus on state-level incentive programs, which vary significantly by state and can still provide meaningful savings on solar and energy-efficient roofing installations.
What Previously Qualified for the 30% Tax Credit (Now Eliminated)
Important: The federal IRA tax credits described below are no longer available. The Section 25D Residential Clean Energy Credit was eliminated by the One Big Beautiful Bill (OBBB) in 2025. The following information is provided for historical reference only. Homeowners should check state-level programs for current incentives.
The Section 25D Residential Clean Energy Credit previously applied to solar energy systems that generate electricity or heat water. These federal credits are no longer available, but the products themselves remain excellent investments for energy savings, and many state incentive programs still apply.
Solar Shingles (BIPV)
Building-integrated photovoltaic (BIPV) shingles function as both a roofing material and a solar electric system. Products like the Tesla Solar Roof, GAF Energy Timberline Solar, and CertainTeed Solstice replace conventional roofing shingles while generating electricity. These products previously qualified for the federal 30% credit (now eliminated). State-level incentives may still apply.
Example Pricing (No Federal Credit Available):
- Tesla Solar Roof total installed cost: $50,000
- Federal IRA credit: $0 (eliminated by OBBB)
- Check state incentives for available savings
Traditional Solar Panels (Roof-Mounted)
Rack-mounted solar panels installed on your existing or new roof previously qualified for 30% under the now-eliminated Section 25D. While the federal credit is gone, solar panels remain a strong investment due to electricity savings and state-level incentive programs.
Solar panels are typically 15-25% more efficient per watt than solar shingles and cost $15,000-$30,000 for a typical 6-10 kW residential system. For more on solar roofing options, see our Solar Shingles Guide 2026.
Solar Water Heating Systems
Solar thermal collectors mounted on your roof that heat domestic water previously qualified for 30% under the now-eliminated Section 25D. These systems still deliver excellent energy savings. Typical installed cost ranges from $3,000-$7,000. These systems can reduce water heating costs by 50-80% and pair particularly well with a roof replacement when plumbing penetrations can be planned during installation.
Battery Storage Systems
Battery storage systems previously qualified for 30% under the now-eliminated Section 25D when paired with a solar installation. Products like the Tesla Powerwall ($8,500-$12,500 installed), Enphase IQ Battery, and LG RESU still provide backup power during outages and allow you to store solar energy for evening use. Some state programs, such as the Massachusetts Connected Solutions program, still offer incentives for battery storage.
What Does NOT Qualify for Federal Tax Credits Anymore
This is where the confusion lives. All of the following roofing products were once eligible for federal energy tax credits under prior versions of Section 25C. None of them qualify in 2026. If a roofing company tells you otherwise, they are working from outdated information.
| Roofing Product | Previous Credit | 2026 Status | Still Worth It? |
|---|---|---|---|
| ENERGY STAR Metal Roofing | Up to $500 (25C) | No federal credit | Yes — 10-25% cooling savings |
| Cool-Color Asphalt Shingles | Up to $500 (25C) | No federal credit | Yes — 7-15% cooling savings |
| Reflective Roof Coatings | Up to $500 (25C) | No federal credit | Yes — extends roof life, saves energy |
| High-SRI Clay/Concrete Tile | Varied by program | No federal credit | Yes — excellent thermal mass, 50+ year life |
| Standing Seam (non-solar) | Up to $500 (25C) | No federal credit | Yes — 40-70 year lifespan, recyclable |
The irony is that all of these products deliver real, measurable energy savings. A reflective metal roof in Texas can cut cooling costs by 20-25% compared to a dark asphalt shingle roof. That is hundreds of dollars per year in savings. The products are excellent — they just do not come with a federal tax incentive anymore. For a detailed comparison of metal vs. shingle performance, see our Metal Roof vs Shingles 2026 Guide.
The tax credit loss is disappointing but should not be the deciding factor. The energy savings, reduced maintenance, and longer lifespan of premium roofing materials make them worthwhile on their own merits. The federal credit was typically only $300-$500 for roofing — a small fraction of a $15,000-$30,000 roof replacement project.
Tax Credit Eligibility Checker
Use this reference to quickly determine whether your planned roofing project qualifies for federal energy tax credits in 2026.
2026 Federal Tax Credit Status
All federal IRA energy tax credits were eliminated by the OBBB in 2025. No roofing projects qualify.
Previously 30% under 25D. Check state programs (SMART, NY-Sun, SRECs)
Previously 30% under 25D. State incentives still available in many states
Previously 30% under 25D. Check state and utility rebate programs
Previously 30% under 25D. Some state programs still offer battery incentives
Previously 30% under 25C. Mass Save, Energize CT still offer rebates
Was eligible under old 25C provisions; expired for roofing
ENERGY STAR-rated shingles used to qualify; no longer eligible
Reflective coatings save energy but are not tax credit eligible
Even high-SRI tiles do not qualify for federal credits
Natural stone; excellent longevity but no energy credit
Federal tax credit information current as of March 2026. Credits are subject to change. Consult a qualified tax professional before claiming credits. State and local incentives may provide additional savings.
Cool Roof Technology Explained
Even without federal tax credits, cool roof technology remains one of the most effective ways to reduce energy consumption. Understanding the science helps you make better material choices regardless of incentive programs.
Key Metrics: SRI and Emissivity
Solar Reflectance Index (SRI)
SRI measures a roof's ability to reject solar heat on a scale of 0-100+. A standard black roof has an SRI near 0; a clean white roof scores around 100. Higher SRI means less heat absorption and lower cooling costs.
- Standard dark shingles: SRI 1-15
- Cool-color shingles: SRI 20-35
- Light-color metal: SRI 50-82
- White TPO/PVC: SRI 80-110
- White tile: SRI 75-90
Thermal Emissivity
Emissivity measures how effectively a roof radiates absorbed heat back into the atmosphere, on a scale of 0 to 1. High emissivity means the roof sheds heat faster, even after the sun goes down.
- Unpainted metal: 0.03-0.10 (low — retains heat)
- Painted/coated metal: 0.75-0.90 (high)
- Asphalt shingles: 0.85-0.91 (high)
- Clay tile: 0.85-0.90 (high)
- White membrane: 0.80-0.90 (high)
The ideal cool roof combines both high solar reflectance (bounces heat away) and high thermal emissivity (radiates absorbed heat quickly). A painted or coated light-color metal roof achieves both: SRI of 50-82 and emissivity of 0.75-0.90. This is why ENERGY STAR-rated metal roofing delivers superior cooling performance even though it no longer qualifies for tax credits.
For steep-slope residential roofs, ENERGY STAR requires an initial solar reflectance of 0.25 or higher and a 3-year aged reflectance of 0.15 or higher. Products meeting these thresholds include most light-color metal roofing, cool-color shingle lines from GAF, Owens Corning, and CertainTeed, and most clay or concrete tile in lighter shades.
Energy Savings by Roofing Material
Even without tax credits, choosing the right roofing material can meaningfully reduce your energy bills. Here is how the major roofing categories compare on energy performance.
| Material | Cooling Reduction | Annual Savings (est.) | Best Climate |
|---|---|---|---|
| Reflective Metal (light color) | 10-25% | $100-$500/year | Hot/warm climates (TX, southern states) |
| Cool-Color Asphalt Shingles | 7-15% | $50-$250/year | Mixed climates (mid-Atlantic, NE) |
| Clay/Concrete Tile | 10-20% | $75-$400/year | Hot/dry climates |
| White TPO/PVC (flat roofs) | 15-30% | $150-$600/year | Hot climates, commercial/flat roofs |
| Standard Dark Asphalt | Baseline (0%) | $0 (reference) | Cold climates (heat retention benefit) |
| Solar Shingles (BIPV) | Net energy producer | $1,200-$2,500/year | All climates with adequate sun exposure |
Climate Considerations for Our 10 Markets
Energy savings from cool roofing vary dramatically by location. In our 12 RoofVista markets:
- -Texas: Highest cooling savings potential. Reflective metal or cool-color shingles can save $300-$500/year. Dominant cooling load makes cool roofs a clear win.
- -CT, MA, RI, NY, NJ, PA, ME, NH, VT: Mixed heating/cooling climates. Cool roofs save on summer cooling but can marginally increase winter heating costs. Net energy savings are still positive in most cases, especially in southern New England and the mid-Atlantic, but less dramatic than in Texas. Focus on insulation and air sealing for the biggest impact in these markets.
Get a personalized estimate for your home with our instant quote calculator. Our AI-powered system factors in your location, roof size, and local pricing.
Attic Insulation Credits: Still Available Under 25C
Here is the good news that many homeowners miss: while roofing materials lost their 25C eligibility, attic insulation and air sealing remain fully eligible. And the best time to upgrade attic insulation is during a roof replacement, when your contractor already has the roof open.
25C Insulation Credit Details
What Qualifies
- - Spray foam insulation (open and closed cell)
- - Blown-in cellulose insulation
- - Fiberglass batt insulation
- - Rigid foam board insulation
- - Reflective/radiant barriers
- - Air sealing materials and labor
- - Must meet IECC standards for your climate zone
Credit Amounts
- - 30% of material and installation costs
- - Up to $1,200 annual cap (shared with other 25C improvements)
- - Typical attic insulation upgrade: $1,500-$4,500
- - Typical credit claimed: $450-$1,200
- - Credit resets annually (claim again next year)
- - Primary residence only (not rentals)
This is a strategic opportunity. When your roofing contractor removes the old roofing material, the attic space and roof deck are fully accessible. Adding or upgrading insulation at this stage costs significantly less than doing it as a standalone project because the labor for accessing the attic is already covered by the roofing work.
Pro Tip: Bundle Insulation With Your Re-Roof
Ask your roofing contractor about adding attic insulation during your roof replacement. Many roofing contractors either handle insulation in-house or partner with insulation specialists. The combined savings are significant:
- -10-20% lower heating/cooling costs from properly insulated attic (R-49 to R-60 in northern states, R-38 to R-49 in Texas)
- -$450-$1,200 tax credit under 25C for the insulation portion
- -Lower installation cost when bundled with roof replacement vs. standalone project
- -Ice dam prevention in northern markets (MA, CT, ME, NH, VT, NY) when combined with proper ventilation
Radiant barriers deserve special mention. These reflective materials installed in the attic (either draped between rafters or adhered to the underside of roof decking) can reduce cooling costs by 5-10% in hot climates like Texas. They qualify under 25C as insulation products. In northern climates, radiant barriers are less impactful but still beneficial in homes with air-conditioned spaces directly below the roof. See our Cost Guide for current insulation and roofing pricing in your state.
State-Level Incentives Across Our 10 Markets
While the federal picture for standard roofing credits is bleak, several of our 12 markets offer state, utility, and municipal incentives that can help offset the cost of energy-efficient roofing and solar installations. Here is the current landscape as of March 2026.
Massachusetts
- - SMART Solar Incentive: Performance-based payments for solar installations (including solar shingles)
- - Mass Save: Rebates up to $2,000 for attic insulation and air sealing
- - Property Tax Exemption: Solar energy systems exempt from property tax increases for 20 years
- - Net Metering: Full retail credit for excess solar generation
Connecticut
- - Energize CT: Rebates for insulation, air sealing, and energy audits
- - RSIP (Residential Solar Investment Program): Performance-based incentive for solar
- - Sales Tax Exemption: Solar energy systems exempt from state sales tax
- - Property Tax Exemption: Solar excluded from property assessment
New York
- - NY-Sun Incentive: Upfront incentive reducing solar installation costs
- - State Tax Credit: 25% state tax credit for solar (up to $5,000)
- - Property Tax Exemption: 15-year exemption for solar energy system value
- - EmPower+: Free insulation upgrades for income-qualifying homeowners
New Jersey
- - SRECs: Solar Renewable Energy Certificates provide ongoing income for solar generation
- - Sales Tax Exemption: Solar equipment exempt from NJ sales tax
- - Property Tax Exemption: Solar systems excluded from property tax assessment
- - NJ Clean Energy: Rebates for insulation and HVAC improvements
Rhode Island
- - Renewable Energy Fund: Grants for residential solar installations
- - Property Tax Exemption: Solar exempt from local property tax
- - Net Metering: Favorable net metering policy for solar generation
- - EnergyWise: National Grid program offering insulation rebates
Texas
- - Property Tax Exemption: 100% property tax exemption for solar installations
- - Utility Rebates: Some utilities (Austin Energy, CPS Energy) offer solar rebates
- - No State Income Tax: Federal credits are your primary incentive in TX
- - Cool Roof Programs: Some Texas municipalities offer rebates for cool roofing
Pennsylvania
- - Solar Alternative Energy Credits: Tradeable credits for solar generation
- - Property Tax Exemption: Varies by municipality for solar
- - Keystone HELP: Low-interest loans for energy improvements including insulation
- - Utility Programs: PECO, PPL offer efficiency rebates
Maine, New Hampshire, Vermont
- - Efficiency Maine / NH Saves / Efficiency Vermont: Insulation and weatherization rebates
- - Net Metering: Available in all three states for solar
- - Property Tax Exemptions: Solar exempt in ME and VT; varies in NH
- - Weatherization Assistance: Income-based programs for insulation upgrades
State incentives change frequently. Check your state energy office and local utility website for the most current programs. Many utilities also offer free or low-cost energy audits that can identify the highest-impact upgrades for your specific home.
How to Maximize Energy Efficiency Without Tax Credits
The absence of a federal roofing tax credit does not mean you should ignore energy efficiency. The energy savings from smart roofing choices compound over decades and often exceed the value of a one-time tax credit. Here is a prioritized approach to maximizing efficiency during a roof replacement.
1. Choose ENERGY STAR-Rated Roofing Products
Even without a tax credit, ENERGY STAR-rated products deliver measurable savings. Look for roofing with a minimum initial solar reflectance of 0.25 for steep-slope applications. All major manufacturers (GAF, Owens Corning, CertainTeed, IKO) offer cool-color shingle lines that meet ENERGY STAR standards. The cost premium over standard colors is typically $0-$0.15 per square foot — essentially free energy savings.
2. Upgrade Attic Insulation
This is often the single highest-impact energy improvement you can make. Bring your attic to current code requirements: R-49 to R-60 in northern states (MA, CT, NY, NJ, PA, ME, NH, VT, RI), R-38 to R-49 in Texas. Note: the 25C federal tax credit for insulation was eliminated by the OBBB in 2025. However, state programs like Mass Save and Energize CT still offer insulation rebates. Combined with energy savings, insulation upgrades during re-roofing often have a payback period under 3 years.
3. Ensure Proper Ventilation
Ridge vents, soffit vents, and balanced intake/exhaust ventilation reduce attic temperatures by 20-40 degrees in summer and prevent moisture buildup in winter. Proper ventilation extends shingle lifespan by 15-25%, reduces cooling costs, and prevents ice dams in northern climates. Most building codes require 1 square foot of net free ventilation area per 150 square feet of attic floor (or 1:300 with balanced intake/exhaust).
4. Install a Radiant Barrier (Credit Available)
Radiant barriers reflect 90-97% of radiant heat that penetrates the roof deck. In Texas and warmer markets, a radiant barrier can reduce cooling costs by 5-10% at a cost of $0.50-$1.50 per square foot. They qualify for the 25C insulation credit. In northern states, radiant barriers are less impactful but still beneficial for homes with finished attic spaces or cathedral ceilings.
5. Consider a Solar-Ready Roof
If solar is not in your budget today, design your new roof for future solar installation. This means orienting the best roof planes toward south/southwest exposure, using a roof material compatible with panel mounting (standing seam metal is ideal), and installing conduit runs from the attic to the electrical panel. When you add solar later, the 25D credit will cover the full solar installation cost.
6. Air Seal Before Insulating (Credit Available)
Air leaks around plumbing penetrations, electrical boxes, recessed lights, and attic hatches can account for 25-40% of a home's heating and cooling loss. Air sealing before adding insulation is critical and qualifies under the same 25C credit as insulation. A blower-door test (often available free through utility programs) identifies the worst leaks.
The bottom line: a well-designed roofing system with proper insulation, ventilation, and an energy-efficient material can reduce your heating and cooling costs by 15-30% compared to a poorly insulated roof with standard dark shingles — no tax credit required. The savings accumulate every month for the life of the roof.
Frequently Asked Questions
Can I get a tax credit for a new roof in 2026?
No roofing or solar products qualify for federal energy tax credits in 2026. Both Section 25C (energy-efficient home improvements) and Section 25D (residential clean energy / solar) were eliminated by the One Big Beautiful Bill (OBBB) in 2025. This includes standard roofing materials, solar shingles, BIPV tiles, solar panels, and attic insulation. Homeowners should check state-level incentive programs for current savings opportunities.
What is the difference between the 25C and 25D tax credits?
Both Section 25C and Section 25D were eliminated by the One Big Beautiful Bill (OBBB) in 2025. Previously, 25C covered insulation, windows, doors, and HVAC with a $1,200 annual cap (roofing had already expired). 25D covered solar electric, solar water heating, geothermal, and battery storage at 30% with no cap. Neither credit is available for new installations in 2026.
Do metal roofs qualify for the federal energy tax credit in 2026?
No. Metal roofs, including ENERGY STAR-rated reflective metal roofing, no longer qualify for federal energy tax credits. The previous 25C provision that allowed up to $500 for qualifying metal roofing has expired. Metal roofs still deliver 10-25% cooling savings and 40-70 year lifespans, making them an excellent investment on their own merits.
How much is the solar roof tax credit in 2026?
There is no federal solar roof tax credit in 2026. The Section 25D credit was eliminated by the OBBB in 2025. Previously, it provided a 30% credit with no cap on solar installations. Neither Tesla Solar Roof, GAF Timberline Solar, nor traditional solar panels qualify for any federal credit. State-level programs (SMART, NY-Sun, SRECs) remain the primary incentive sources.
Does attic insulation still qualify for a tax credit?
No. The Section 25C credit, which previously covered attic insulation at 30% of cost (up to $1,200/year), was eliminated by the OBBB in 2025. However, state programs like Mass Save, Energize CT, and Efficiency Maine still offer rebates for insulation upgrades. The best time to upgrade insulation remains during a roof replacement when the attic is fully accessible.
What is a cool roof and does it save money?
A cool roof reflects more sunlight and absorbs less heat using materials with a high Solar Reflectance Index (SRI). Cool roofs can reduce cooling costs by 10-30% in warm climates and lower roof surface temperatures by 50-60 degrees. Options include reflective metal roofing, cool-color shingles, and white membranes. While no longer eligible for federal credits, the energy savings typically pay for any cost premium within 2-5 years in southern states.
Are there state tax credits or rebates for energy-efficient roofing?
Several states offer incentives independent of federal credits. Notable programs include Massachusetts SMART solar incentives and Mass Save insulation rebates, New York's NY-Sun incentive and 25% state solar credit (up to $5,000), New Jersey SRECs, Connecticut's Energize CT rebates, Rhode Island's Renewable Energy Fund, and Texas property tax exemptions for solar. Check your state energy office for current programs.
Should I install solar shingles or traditional solar panels?
Neither qualifies for federal tax credits (eliminated by the OBBB in 2025). On their own merits, traditional panels cost $15,000-$30,000, are 15-25% more efficient, and work well on roofs with 10+ years of life remaining. Solar shingles cost $35,000-$75,000 but replace your roofing material entirely, offer a more seamless aesthetic, and include integrated roofing warranties. If you need a new roof anyway, solar shingles become cost-competitive. Check state incentive programs for available savings. See our Solar Shingles Guide for a detailed comparison.
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