The cost associated with building solar PV systems can qualify for a 30% Investment Tax Credit. Money spent towards the roof structure, however, is unlikely to be counted towards the credit.
Some companies might claim that the costs for reroofing or repairing a roof are covered by the solar tax credit if they are necessary to install the solar system. If the roof replacement or enhancement is directly related to the installation of solar panels, such as structural reinforcements or modifications necessary to support the solar panels, these costs might be eligible for the ITC.
But in general, it's not advisable to try to include the cost of a commercial roof replacement in the solar Investment Tax Credit. Here’s why:
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Roof Replacement Costs: The IRS does not consider traditional roofing components (like shingles or trusses) as qualifying expenses for the solar tax credit. These elements primarily serve a structural function and do not directly relate to the generation of energy.
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Solar-Specific Exceptions: The only exception is for solar roofing tiles and solar shingles, which function both as roofing material and energy generators.
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Avoiding Audits: Attempting to include non-qualifying roof costs in the solar tax credit can trigger an IRS audit. If found fraudulent, you could face repayment of the credit, fines, and interest.
Station A recommends focusing on claiming the costs directly related to the solar installation and generation assets, such as solar panels and qualifying solar shingles.
If you do decide to apply either generating roof assets or structural modifications to the roof towards your tax credit, refer to the IRS guidelines or consult with a tax professional or an accountant who specializes in renewable energy tax credits.