Clarification On Dates Of Metal Roofing Tax Credits

By Scott Kriner, Green Metal Consulting

In a previous column, "Metal Roofing Benefits From The “Bail Out” Bill With Tax Credit" we talked about the extension of some of the tax incentives for cool metal roofing from the Energy Policy Act of 2005. The interpretation of the language in the new Emergency Economic Stabilization Act of 2008 (“Bail Out” bill) was tricky in determining the effective date of the tax credit.

For example, the Bail Out bill contained the following language in Section 302 that pertains to residential rennovations and new construction:

(a) EXTENSION OF CREDIT.—Section 25C(g) is amended by striking “placed in service after December 31, 2007” and inserting “placed in service—
(1) after December 31, 2007, and before January 1, 2009, or
(2) after December 31, 2009.

After some correspondence with a lobbyist working on behalf of the MCA, he was able to obtain the “legislative intent” of the language in the bill. Piecing all of this together with the original language in the Energy Policy Act of 2005, we have the following amended statement on what is called the TERMINATION clause (SEC 25(C)g of Section 1333):
"This section shall not apply with respect to any property placed in service (1) after December 31, 2007 and before January 1, 2009 or (2) after December 31, 2009".

That's how politicians and lawyers say that the $500 tax credit does not apply retroactively for roofs put in service during 2008. However, it’s important to note that homeowners who install an ENERGY STAR labeled prepainted residential metal roof during 2009 can obtain up to a $500 tax credit.

This is a clarification of the earlier interpretation in a column that suggested the incentives were effective retroactively for cool metal roofs installed during 2008 and through 2009.

It’s often difficult to understand the rhetoric and mumbo jumbo coming from Capitol Hill. This bill was no exception.

To read the original "Metal Roofing Benefits From The “Bail Out” Bill With Tax Credit" column, click here. 

Scott Kriner is the president and founder of Green Metal Consulting Inc. He is a LEED Accredited Professional who began his career in the metal construction industry in 1981. His company is a member of the U.S. Green Building Council, the California Association of Building Energy Consultants and the Residential Energy Services Network (RESNET). Scott can be reached by email at skriner1@verizon.net, or by phone at (610) 966-2430. You can also visit him on the web at www.greenmetalconsulting.com.