Roof Tax Credits & Rebates in New York (2026 Guide)
A new roof is a major investment. Federal tax credits, state programs, and utility rebates can put thousands of dollars back in your pocket if you choose qualifying materials.
If you are planning a roof replacement on Long Island, you may be eligible for significant tax credits and rebates that reduce the net cost of the project. The federal government, New York state, and PSEG Long Island all offer programs that reward energy-efficient home improvements, including certain roofing materials and insulation upgrades.
This guide covers every program available to Long Island homeowners in 2026, what qualifies, how much you can save, and exactly how to claim the credits.
Federal 25C Energy Efficient Home Improvement Credit
The biggest incentive for Long Island homeowners is the federal Section 25C tax credit, updated and expanded by the Inflation Reduction Act of 2022. This credit is available through at least 2032 and applies to a range of energy-efficient home improvements, including qualifying roofing materials.
How the credit works
- Credit amount: 30% of the cost of qualifying roofing materials
- Annual cap: $3,200 total for all energy-efficient home improvements (roofing falls under the $1,200 building envelope subcap)
- Applies to: Materials cost only, not labor
- Eligibility: Must be your primary residence in the United States
- Rental properties: Do not qualify
- Timeframe: Available for installations through December 31, 2032
Important: the roofing materials subcap is $1,200 within the $3,200 annual total. If your qualifying roofing materials cost $4,000, your credit would be $1,200 (30% of $4,000). If they cost $5,000 or more, you still cap at $1,200 for the roofing component. However, if you also install other qualifying improvements (like a heat pump or insulation) in the same year, you can claim up to $3,200 total across all categories.
What the credit is worth in real dollars
| Qualifying Material Cost | 30% Credit | Actual Credit (after $1,200 cap) |
|---|---|---|
| $2,000 | $600 | $600 |
| $3,000 | $900 | $900 |
| $4,000+ | $1,200+ | $1,200 (capped) |
Which Roofing Materials Qualify?
Not all roofing materials qualify for the 25C tax credit. The materials must meet ENERGY STAR requirements for roof products. Here is what qualifies and what does not:
Qualifying materials
- Metal roofing with pigmented coatings that meet ENERGY STAR solar reflectance requirements. Standing seam metal roofing in lighter colors (white, light gray, tan) typically qualifies. This is the most common qualifying roofing material for Long Island homes.
- Asphalt shingles with ENERGY STAR cool roof certification. These are specially formulated shingles with reflective granules that meet minimum solar reflectance and thermal emittance standards. Not all asphalt shingles qualify — only those with the specific ENERGY STAR cool roof label.
- Cool roof coatings applied to existing roofs that meet ENERGY STAR reflectance standards. These are more common on flat or low-slope commercial roofs.
Materials that do NOT qualify
- Standard 3-tab asphalt shingles (unless ENERGY STAR cool roof certified)
- Standard architectural shingles without cool roof certification
- Cedar shakes or wood shingles
- Slate roofing
- Standard dark-colored metal roofing without qualifying reflectance
When you request a quote from ERS Roofing & Siding, we can identify which material options qualify for the tax credit and provide the manufacturer certification documentation you need to claim it. For a broader look at material options, see our guide to the best roofing materials for Long Island.
New York State Energy Programs
New York state has several energy efficiency programs, though most are focused on insulation, heating/cooling systems, and solar rather than roofing materials specifically.
NYSERDA programs
The New York State Energy Research and Development Authority (NYSERDA) administers several residential energy programs:
- EmPower+ Program: Provides free energy efficiency improvements for income-eligible homeowners, which can include insulation improvements. If you qualify and are replacing your roof, coordinating insulation upgrades during the project can maximize savings.
- Comfort Home Program: Offers incentives for new home construction that meets energy efficiency standards. Not applicable to roof replacement on existing homes, but relevant for new construction.
- NY-Sun Program: Provides incentives for solar panel installation. If you are replacing your roof and considering solar panels, it makes sense to install both at the same time to avoid removing panels later for roof work.
NYS real property tax exemption
New York state offers a real property tax exemption for certain energy-efficient improvements. Solar panels and solar roofing systems are exempt from increased property tax assessments for 15 years. Standard roofing materials, even energy-efficient ones, do not qualify for this exemption.
PSEG Long Island Rebates
PSEG Long Island offers energy efficiency rebates through their Home Performance with ENERGY STAR program. While they do not offer direct rebates for roofing materials, several related improvements qualify:
- Attic insulation: Rebates for adding or upgrading attic insulation to recommended R-values. This is directly relevant to roof replacement because the best time to add attic insulation is during a re-roofing project when the attic space is accessible.
- Air sealing: Rebates for sealing air leaks in the building envelope, including around attic penetrations, soffits, and rim joists.
- Home energy audit: PSEG Long Island offers discounted or free home energy audits that identify insulation and air sealing opportunities.
If you are replacing your roof and your attic insulation is thin, outdated, or damaged, upgrading the insulation during the project is one of the highest-ROI improvements you can make. Learn more in our attic ventilation and insulation guide.
How to Claim the Federal Tax Credit
Claiming the 25C tax credit is straightforward, but you need the right documentation. Here is the process:
Step 1: Choose qualifying materials
Work with your roofing contractor to select materials that meet ENERGY STAR requirements. The contractor should be able to confirm which products qualify and provide the manufacturer's certification statement.
Step 2: Keep your documentation
You need three documents to claim the credit:
- Manufacturer's certification statement: This is a document from the product manufacturer certifying that the material meets the energy efficiency requirements of Section 25C. Your contractor or the manufacturer's website should provide this.
- Itemized invoice: Your invoice must show the cost of qualifying materials separately from labor. This is important because the credit applies only to materials, not installation labor.
- Proof of installation date: The credit applies to the tax year in which the roof was installed. Your invoice or a completion certificate serves as proof.
Step 3: File IRS Form 5695
When you file your federal tax return, include IRS Form 5695 (Residential Energy Credits). Part II of this form covers the 25C credit. Enter the cost of qualifying materials, calculate 30%, and apply the $1,200 cap. The resulting credit transfers to your Form 1040.
Step 4: Keep records
Retain all documentation (manufacturer certification, itemized invoice, Form 5695) for at least three years after filing in case of an IRS audit. Digital copies are fine.
Maximizing Your Total Savings
The most cost-effective approach combines multiple programs and strategic timing:
- Bundle improvements: If you replace your roof with qualifying materials and add attic insulation in the same project, you can claim the federal 25C credit for the roofing materials and potentially receive a PSEG Long Island rebate for the insulation.
- Time your project: Since the 25C credit resets annually, you could theoretically split large projects across tax years to maximize credits. However, for roofing, it is usually more practical and cost-effective to do everything at once.
- Consider solar: If solar panels are in your future plans, installing them during or shortly after a roof replacement avoids the cost of removing and reinstalling panels when the roof eventually needs replacement.
For a full breakdown of what a roof replacement costs before credits and rebates, see our guide on how much a new roof costs on Long Island.
Talk to Us About Tax Credit-Eligible Roofing
ERS Roofing & Siding can help you select materials that qualify for the federal 25C tax credit and provide the documentation you need to claim it. We install both metal roofing and ENERGY STAR-certified shingles on homes across Long Island.
Call (516) 595-5395 or request a free estimate. We will walk you through the qualifying material options and help you maximize your savings.