Connecticut Homeowners Can Save Thousands on Energy-Efficient Roof Replacements with 2024 Tax Credits

Connecticut homeowners planning roof replacements in 2024 have compelling reasons to consider energy-efficient upgrades that go beyond traditional roofing materials. While standard roof replacements don’t qualify for tax credits under current 2024 tax law, homeowners can still capitalize on substantial federal tax incentives by incorporating qualifying energy-efficient improvements into their roofing projects.

Understanding the Energy Efficient Home Improvement Credit

The Inflation Reduction Act transformed energy efficiency incentives for homeowners. If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200. You can claim the credit for improvements made through 2032. However, these credits are set to expire at the end of 2025 due to the signing of the One Big Beautiful Bill, making 2024 a critical year for Connecticut homeowners to take advantage of these incentives.

Beginning Jan. 1, 2023, the credit equals 30% of certain qualified expenses, with limits on the allowable annual credit and on the amount of credit for certain types of qualified expenses. The program offers $1,200 for energy efficient property costs and certain energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600) and home energy audits ($150) $2,000 per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers.

Qualifying Improvements During Roof Replacement

While traditional roofing materials don’t qualify, homeowners can maximize their tax savings by bundling qualifying improvements with their roof replacement project. Insulation and air sealing materials or systems are they only types of qualifying property that do not have to meet the qualified manufacturer and PIN requirements, making them ideal additions to roofing projects.

Key qualifying improvements include:

• Insulation: Typical bulk insulation products, such as batts, rolls, blow-in fibers, rigid boards, expanding spray, and pour-in-place, can qualify for 10 percent of the cost, up to $500—not including installation costs
• Air Sealing: Qualified energy efficiency improvements to the building envelope including insulation and air sealing
• Energy-Efficient Windows and Doors: If replacing during the roofing project, these can qualify for additional credits
• Solar Roofing Systems: Some solar roofing tiles and solar roofing shingles serve as solar electric collectors while also performing the function of traditional roofing, serving both the functions of solar electric generation and structural support and such items may qualify for the credit

Connecticut-Specific Opportunities

Connecticut residents have additional incentive opportunities beyond federal tax credits. CT homeowners can use IRA tax credits to reduce the cost of home energy efficiency improvements, energy-saving renovations, and installing efficient heating and cooling systems. The state is also preparing for future rebate programs, with Connecticut eligible to receive $49,830,560 for the Home Efficiency Rebate program (HER) and $49,732,517 for the Home Electrification and Appliance program (HEAR), though these programs are expected to launch HEAR mid-2025 and HER in early 2026, contingent on DOE approval.

Maximizing Your Tax Credit Strategy

Given the way the annual aggregate limits are structured, it may be prudent to spread your improvements over a few years. For Connecticut homeowners, this means strategically timing improvements to maximize benefits. If your heating or cooling system is old, and you are considering a new air source heat pump, it is always wise to optimize your attic insulation first, so you don’t pay for more heating and cooling than you actually need. Making these upgrades together in one year would allow you a tax credit of up to $1,200 for the insulation and up to $2,000 for the heat pump.

Working with Professional Contractors

When planning energy-efficient roof improvements, partnering with experienced contractors is essential. For Connecticut homeowners seeking expert residential roofing services in sullivan and surrounding New London County areas, Sullivan Contracting brings decades of expertise to energy-efficient roofing solutions. Sullivan Contracting means partnering with a roofing contractor that values integrity, quality, and customer satisfaction. We stand out due to our commitment to using only high-quality materials, ensuring longevity and performance.

Our commitment to sustainability and energy-efficient roofing options reflects our dedication to the future of our community and the planet, making them well-positioned to help homeowners navigate both traditional roofing needs and energy-efficient upgrades that qualify for tax incentives.

Important Filing Requirements

To claim these credits, homeowners must file Form 5695, Residential Energy Credits Part II, with your tax return to claim the credit. Remember that you must claim the credit for the tax year when the property is installed, not merely purchased. Additionally, beginning in 2025, for each item of qualifying property placed in service, no credit will be allowed unless the item was produced by a qualified manufacturer and the taxpayer reports the PIN for the item on their tax return.

The credits are nonrefundable, so you can’t get back more on the credit than you owe in taxes. You can’t apply any excess credit to future tax years, making it important to plan improvements when you have sufficient tax liability to benefit from the credits.

Act Now for Maximum Savings

With federal energy efficiency tax credits scheduled to expire at the end of 2025, Connecticut homeowners should act quickly to take advantage of these substantial savings opportunities. By combining necessary roof replacements with qualifying energy-efficient improvements like insulation, air sealing, and energy-efficient windows, homeowners can potentially save thousands of dollars while improving their home’s energy performance and comfort.

For Connecticut homeowners ready to explore energy-efficient roofing solutions, consulting with experienced local contractors who understand both roofing excellence and energy efficiency requirements is the first step toward maximizing these valuable tax incentives.