How To Take Advantage Of IRS Tax Code Deductions For Commercial Roofing Replacement Or Repair

Are you looking for a good reason to have the roof on your business repaired or replaced? Would a tax break fit the bill? Now is the time to act as the Tax Cuts and Jobs Act will expire at the end of 2025. Here’s how to take advantage of IRS tax code deductions for commercial roofing. Here’s also how North Shore Roofing helps your business get the most out of a tax code benefit.

Commercial Roofing Replacement Or Repair Expenses

Repairing or replacing a roof on a commercial building can be a great expense because of the square size of structures. It also requires businesses to set a fixed budget and plan for its daily operations around the work. The Tax Cuts and Jobs Act, Section 179, now allows commercial property owners to deduct these costs (up to one million in a tax year) without roof depreciation.

Roofing Contractors Association (NRCA) Promotes The Tax Cut

With the benefit of a one-time deduction, it allows property owners to make this costly expense more affordable and beneficial. The Roofing Contractors Association (NRCA) fully applauds this tax code deduction as a great benefit to nonresidential properties that need new roofs or require some roofing repair improvements. There are now more extensive expansion benefits.

Under Section 179, some business taxpayers can also expense the cost in full rather than having to depreciate it over thirty-nine years of tax filings as per the rules that preceded 2017. While business owners can expense their commercial roofing needs up to one-million-dollars, the gradual phase-out threshold of the Section 179 tax credit is indexed for inflation at $2.5 million.

There are also special considerations under the Tax Cuts and Jobs Act for what qualifies as eligible commercial properties. Section 179 stipulates that non-residential property that needs improvements can include commercial roofing, air-conditioning, ventilation, security systems, and fire protection and alarm systems. It’s a great time to get this equipment if you lack them.

The tax cut also identifies who qualifying taxpayers are. If you are a small or mid-size business owner, you can take advantage of any of these tax benefits. Improvements may also include re-roofing to buildings, so even if you don’t need a new roof, you can still make improvements to your existing structure so you extend the lifetime of commercial roofing or replace materials.

Is Section 179 Deductions And Bonus Depreciation Still In Effect?

Section 179’s Deductions and Bonus Depreciation remains in effect through January 1, 2023. It will cover 100% of bonus depreciation. You can ask your tax specialist whether you qualify as an eligible commercial property or whether additional depreciation expenses are still in effect.

Does A Roof Replacement Qualify For Bonus Depreciation?

The good news about Section 179 is that if you do not qualify as a small or midsize business, bonus depreciation can still be used for commercial roofing replacement or building repair improvements by disqualified taxpayers such as large corporations under its tax code expensing.

North Shore Roofing is here to help you achieve your commercial roofing goals today. Give us a call at (978) 977-3816 or visit us on Facebook at