Can roof replacement be tax deductible, and is there a tax credit for it?
Why there is no credit
Years ago, certain metal and reflective asphalt roofs qualified for a federal energy credit. Roofs were dropped from the Energy Efficient Home Improvement Credit starting in 2023, and federal legislation passed in 2025 ended that credit entirely for property placed in service after December 31, 2025. So a roof installed in 2026 has no federal credit, regardless of the shingle's color or rating.
Your own home: basis, not deduction
A new roof is added to your home's cost basis. When you sell, a higher basis lowers your taxable gain, which matters only if your gain exceeds the home sale exclusion you qualify for. Keep the contract, invoice and proof of payment with your home records. IRS Publication 523 explains basis.
Rental property
A roof replacement on a residential rental is generally depreciated over the building's recovery period of 27.5 years rather than deducted at once. Smaller roof repairs on rentals are often deductible in the year paid. Publication 527 has details.
Insurance money and taxes
Insurance proceeds that simply pay to restore storm damage to your home are generally not treated as income. If your situation is unusual, such as a payout larger than your basis, ask a tax professional.
The better question is often whether a storm damaged the roof. See does homeowners insurance cover roof replacement. This is general information, not tax advice.