Key Takeaways

• The federal government provides tax credits for homeowners replacing siding with energy-efficient materials.
• You can save up to 30% on qualifying siding materials through the Energy Efficient Home Improvement Tax Credit.
• Combining state, federal, and utility incentives can significantly reduce the overall cost of your siding replacement.
• Elevated Remodeling is a trusted home improvement service provider in Delaware, offering replacement siding.

How Delaware Homeowners Can Save Money with Replacement Siding

Replacing your home’s siding can be a significant investment, but it doesn’t have to break the bank. In Delaware, you can take advantage of various tax credits and rebates that make energy-efficient home improvements more affordable. 

9 Signs You Need Replacement Siding

1. Cracked or Peeling Siding: Look for holes, chips, or cracks. These issues often suggest underlying water damage.
   
2. Warped Siding: Warping is typically caused by moisture getting underneath the siding, which can lead to the rotting of the boards beneath.
   
3. Mold or Mildew Growth: The presence of mold or mildew on the exterior suggests moisture problems with your siding.
   
4. Interior Wall Water Damage: Signs of water damage inside your home, such as peeling wallpaper or stains, can indicate that the siding is failing to protect the interior.
   
5. Rising Energy Bills: If your energy costs are increasing without any changes in usage or rates, it may be due to poor insulation from deteriorating siding.
   
6. Loose Siding: Siding that is loose can allow moisture to enter and cause further damage to the home structure.
   
7. Fading or Discoloration: Significant fading or discoloration over time can indicate that the siding is nearing the end of its lifespan and may need replacement.
   
8. Old Age: If your siding is over 20 years old, it may be time to consider replacement, as materials degrade over time.
   
9. Excessive Maintenance: If you find yourself constantly repairing or maintaining your siding, it may be more beneficial to replace it with a low-maintenance option.

At Elevated Remodeling, we specialize in high-quality, energy-efficient replacement windows, doors, siding, and roofing solutions. Based in Pennsville Township, New Jersey, our company serves clients in New Jersey, Pennsylvania, Maryland, and Delaware. Get a Quote for Your Project

Delaware Tax Credits for Replacement Siding Explained

Under the Energy Efficient Home Improvement Tax Credit, you can receive a tax credit of up to 30% of the cost of qualifying siding materials, with a maximum credit limit of $1,200 per year. 

Eligibility Criteria

To qualify for the federal tax credits for replacement siding, you must meet the following criteria:

1. Primary Residence: The home must be the taxpayer’s primary residence where they live most of the time. The credit does not apply to newly constructed homes or rental properties.
   
2. Qualified Materials: The siding materials must be ENERGY STAR® certified or meet energy efficiency standards, such as insulated vinyl siding or fiber-cement siding with appropriate R-values.
   
3. Installation Period: The siding must be installed between January 1, 2023, and December 31, 2032, to be eligible for the tax credit.
   
4. Documentation: You must retain all receipts related to the purchase and installation of the siding as well as the Manufacturer’s Certification Statement to substantiate your claims when filing taxes.

There are no lifetime dollar limits on the credits. You can claim the maximum annual credit every year when eligible improvements are made.

Step-by-Step Application Process

1. Purchase Eligible Siding: Select and purchase siding materials that qualify under the Energy Efficient Home Improvement Tax Credit. Check if they are ENERGY STAR® certified or meet the required R-values.
   
2. Install the Siding: Hire a qualified home improvement contractor to install the siding. Collect the documentation and receipts for the work done.
   
3. Collect Documentation: Gather all necessary documentation, including:
   
   1. Receipts for the siding materials and installation costs.
   2. Manufacturer’s Certification Statement confirming that the siding meets energy efficiency standards.
      
4. Complete IRS Form 5695: Fill out IRS Form 5695. It will guide you through reporting your eligible expenses.
   
5. File Your Taxes: Submit your completed tax return with Form 5695 to the IRS for the tax year in which the siding was installed. Keep copies of all documents for your records.
   
6. Monitor Future Tax Returns: If you have any excess credits, you can’t carry them forward to future tax years, as the credits are nonrefundable.

How Tax Credits Work

Tax credits reduce the amount of tax you owe on a dollar-for-dollar basis. For example, if you qualify for a $1,200 tax credit and owe $2,000 in taxes, your tax liability would be reduced to $800. This is different from a tax deduction, which reduces your taxable income.

Available Rebates for Energy-Efficient Home Upgrades in Delaware

1. Downtown Development District (DDD) Rebate Program

The DDD rebate program provides incentives for siding replacement projects within designated DDD districts in Delaware.

• Rebate: Available to qualified investors who make qualified real property investments in commercial, industrial, residential, and/or mixed-use buildings within a designated DDD district.
  
• Eligible Costs: Costs associated with exterior siding, including vinyl, concrete plank, stucco, moisture and thermal protection, and related labor and materials.
  
• Application Process: You must apply to the Delaware State Housing Authority (DSHA) for the rebate within 60 days of the placed-in-service date.

2. Delmarva Power Green Energy Program Incentives

Delmarva Power, a local utility in Delaware, provides incentives for energy-efficient home improvements:

• Rebate Amount: You can receive a rebate of $0.70 per watt for qualifying solar PV systems.
  
• Eligibility: The system must be installed by a qualified professional to be eligible for the rebate.

3. Delaware Electric Cooperative Green Energy Program Incentives

The Delaware Electric Cooperative also provides incentives for energy-efficient home upgrades:

• Rebate Amounts: $2,000 for Class A solar PV systems and $3,500 for Class B solar PV systems.
  
• Requirements: Systems must have a warranty and are typically required to be installed by a participating contractor, although some programs allow for self-installation.

Pro Tip: One of the best ways to maximize your savings is by combining state, federal, and utility incentives. By participating in multiple programs, you can significantly reduce the overall cost of your siding replacement project.

Why You Should Consider Replacing Your Siding

1. Improved Energy Efficiency: New siding, especially when combined with proper insulation, can significantly boost your home’s energy efficiency. Old, damaged siding can allow drafts and air leaks, which makes it harder to maintain a comfortable temperature and leads to higher energy bills.
   
2. Better Curb Appeal: Faded, cracked, or peeling siding can detract from your home’s appearance. Refreshing your home with new siding in a style and color that complements your architectural design can dramatically boost its curb appeal.
   
3. Reduced Maintenance: Modern siding materials are manufactured to be more durable and easier to maintain than older options. New siding is less susceptible to fading, cracking, or peeling, and it can often be cleaned with a simple hose or power wash. With reduced maintenance, you can save time and money in the long run.
   
4. Structural Protection: Old or damaged siding can allow water to seep into your home, resulting in rot, mold growth, and structural damage. Replacing siding provides a protective barrier against the weather to safeguard your home’s structural integrity and prevent costly repairs down the line.

Choose Elevated Remodeling for Delaware Replacement Siding

When replacing your siding, the quality of the contractor you choose determines the amount of value you get for your money in terms of quality service and peace of mind. 

We are a trusted name in the industry, known for our high-quality craftsmanship and exceptional customer service. Here’s why you should consider us for your Delaware replacement siding project:

1. High-Performance Insulation: We provide Prodigy® Next-Generation Insulated Siding which has integrated 1½” thick EPS rigid foam insulation that improves energy efficiency and helps reduce utility costs.
   
2. Durable Design: Our siding’s secure interlocking panel design minimizes insulation gaps and provides a tight fit for enduring strength and resistance to extreme weather conditions.
   
3. Aesthetic Appeal: The finely milled cedargrain panel gives timeless curb appeal with a rustic color palette and modern design.
   
4. Noise Reduction: The high-density insulation helps minimize outdoor noise to contribute to a more comfortable indoor environment.
   
5. Comprehensive Warranty: Our siding is backed by a lifetime limited, transferable warranty that includes protection against fading and hail damage for your long-term peace of mind.
   
6. Professional Installation: We follow industry best practices and adhere to all state regulations so that your siding is installed correctly and efficiently. With us, you can be sure that your home is in good hands.

Ready to transform your home with new siding? Contact us today to schedule a consultation and get a free quote. You can reach us at (800) 672-8519 or by clicking on “Request a Quote” in the top right corner.

Frequently Asked Questions (FAQs)

What are the main benefits of replacement siding?

Replacement siding has several benefits, including improved energy efficiency, better curb appeal, increased home value, and better protection against weather. High-quality siding materials can also reduce maintenance needs and extend the lifespan of your home.

How do I know if my siding qualifies for tax credits?

To qualify for tax credits, your siding materials must meet energy efficiency standards. Look for materials that are ENERGY STAR® certified or have the appropriate R-values. Additionally, the installation must be performed by a licensed contractor like Elevated Remodeling to comply with state regulations.

Can I apply for multiple rebates and tax credits?

Yes, you can apply for multiple rebates and tax credits to maximize your savings. Combining state, federal, and utility incentives can significantly reduce the overall cost of your siding replacement project. Be sure to research all available programs and apply early to secure the funds.

Who is eligible for the tax credit?

Eligibility for the tax credit typically depends on the type of siding you install, your income level, and the year the installation is completed. Generally, homeowners who install qualifying energy-efficient siding on their primary residence are eligible for the tax credit.

What services does Elevated Remodeling provide? 

We specialize in replacement windows, siding, roofing, and doors. Each of our services focuses on improving energy efficiency, durability, and aesthetic appeal, with a strong emphasis on quality craftsmanship and customer satisfaction.