What Exterior Remodeling Projects Are Tax Deductible in Athens?

If you’re planning an exterior remodel in Athens, GA, you might be wondering: Are home improvements tax deductible? The answer depends on the type of project you’re tackling. While most repairs don’t qualify, certain energy-efficient home improvements may make you eligible for valuable federal tax credits.

In this guide, we look at which exterior remodeling projects may qualify for deductions or credits and answer some frequently asked questions.

Disclaimer

This blog post is intended for informational purposes only and does not constitute tax or legal advice. Tax laws can vary based on location, personal financial circumstances, and annual updates from the IRS. Always consult a licensed tax professional or accountant to determine what deductions or credits apply to your specific situation.

Understanding the Basics: Are Home Improvements Tax Deductible?

Many homeowners are surprised to learn that most home improvements, while potentially increasing property value, are not immediately tax deductible. The IRS makes a clear distinction between repairs, capital improvements, and energy-efficient upgrades, each of which has different tax implications.

Are home repairs tax deductible? Repairs (like fixing a leaky gutter or replacing a few broken shingles) are considered maintenance and not tax deductible. 

Can you write off home improvements? Improvements, on the other hand, add value, extend the life of your home, or adapt it to new uses. These are capital expenses that may increase your home's value. Certain improvements that make your home more energy efficient, like installing ENERGY STAR-rated windows, adding insulation, or upgrading roofing materials, may qualify for federal tax credits, such as the Energy Efficient Home Improvement Credit.

These distinctions are key for homeowners in Athens planning projects like siding replacement or roof updates. Understanding whether your project falls under a deductible category can help you make smarter, more strategic investments.

Encompass Contracting is considered one of the best home renovation companies in Athens, GA. Learn about our Exterior Services to see how we could help you make qualifying improvements.

What Home Remodeling Is Tax Deductible?

Not all remodeling projects qualify for tax benefits, but certain energy-efficient exterior upgrades do. Thanks to the Energy Efficient Home Improvement Credit, homeowners in Athens, GA may be eligible for federal tax credits when they make qualifying improvements that enhance energy performance.

Qualifying Exterior Improvements

The IRS outlines several types of exterior improvements that may be eligible for tax credits, including:

• Windows and Skylights: Must meet ENERGY STAR® standards
• Exterior Doors: Energy-efficient models
• Insulation: Must meet International Energy Conservation Code (IECC) standards
• Solar Panels: Eligible for a separate Residential Clean Energy Credit

You can view the full list of qualifying improvements and limits on the IRS energy credit page.

Encompass Contracting knows home remodeling near Athens, GA. We do qualifying improvements so you can get the best return for your money. Look through our gallery to see what we can do for you.

Are Windows and Siding Tax Deductible?

When it comes to exterior remodeling, windows and siding are two of the most common upgrades, but do they qualify for tax deductions?

Windows: Yes, With Conditions

Replacing old windows with new, energy-efficient models can make your home more comfortable and lower energy bills. According to the IRS, qualified ENERGY STAR® windows and skylights can earn you a tax credit under the Energy Efficient Home Improvement Credit.

To qualify:

• The windows must be installed at your primary residence
• They must meet ENERGY STAR criteria
• You must file IRS Form 5695 when filing your taxes

Siding: Usually No, But With Exceptions

Siding replacement is typically considered a capital improvement and not directly tax deductible. However, if the siding installation includes additional insulation or weather barriers that enhance energy efficiency, that portion of the project may qualify for the energy credit.

If you're replacing siding as part of a larger storm restoration or energy-saving project, consult a tax professional to see if any part of your expense is eligible. And if you’re looking for siding installers near Athens, GA, Encompass Contracting has your back. Learn more about costs in your area with our guide: What Is the Average Cost of Siding Installation in Athens, GA

Frequently Asked Questions

1. Is painting the exterior of your house tax deductible?

   Generally, no. Painting the exterior of your home is considered a maintenance expense, not a capital improvement. As a result, it’s not tax deductible under IRS guidelines.

2. What house expenses can be written off?

   Some house-related expenses can be written off, depending on your situation:

   Home office expenses (if you’re self-employed and meet IRS criteria)

   Medical-related home modifications

   Mortgage interest and property taxes (as itemized deductions)

   Energy-efficient improvements (qualify for federal tax credits)

   Always consult with a tax professional to see what applies to your specific case.

3. Is storm damage tax deductible?

   Storm damage is only tax deductible if your home is located in a federally declared disaster area and you experience a qualified casualty loss. Standard weather-related repairs, like roof or siding replacement from hail or wind, typically are not deductible on your federal return.

4. Are there tax credits for solar panels?

   Yes! Homeowners who install solar panels can take advantage of the Residential Clean Energy Credit, which offers a tax credit. This includes solar PV panels, inverters, wiring, and installation labor.

Make Your Remodel Work Smarter

While most home improvements aren’t tax deductible upfront, smart planning can open the door to meaningful tax credits, especially when you focus on energy-efficient exterior upgrades. There are ways to make your home more comfortable and cost-effective while potentially reducing your tax bill, such as installing ENERGY STAR® windows or adding insulation.

Encompass Contracting works on exterior remodeling for homeowners in and around Athens, GA. We’ll help you navigate your options, choose qualifying materials, and complete high-quality work that may offer long-term financial benefits.

Ready to get started?

Contact us today for a free consultation.

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