Good news for businesses considering commercial reroofs: A new tax law now allows businesses to fully expense a roof up to $1 million in a single year!
Previously, roofs had to be expensed slowly over time via depreciation, but thanks to Section 179 of the Tax Cuts and Jobs Act – which broadens the parameters of “qualified real property” to include nonresidential roofing improvements – business owners can immediately expense the cost of commercial roofing projects starting this year. That means a quicker, easier process with simpler budgetary and tax considerations.
“It’s great because in a lot of cases when a business owner has a roof that needs to be replaced, they’re just trying to patch it with ‘Band-Aids’ to avoid an entire reroof,” Senior Commercial Estimator Paul Stowe said. “With this incentive, it’s better to get the whole roof replaced and bring it up to code. So now is the time.”
The new law also could lead to an influx of reroofing contracts, which means business owners looking to take advantage of the new law should act now before the rush.
“I don’t think the word is out yet,” Stowe said. “But a lot of people try to maximize their write-offs toward the end of year, so we’re expecting a lot of owners will be trying to get their roofs replaced come Christmas time.”
“If you have any questions at all, call us,” Managing Partner Matthew Case said. “We will have the answer.”