If you’ve been looking for an incentive to replace your old, worn-out, commercial roof, then you may have just received the push you’ve been looking for. The new tax code (Section 179) which passed into law in late December 2017 has changed how roofing costs are classified, including for business and property owners. How does the new tax code work and how can it open up a considerable amount of capital for improvements to your building?


Under the previous tax system, capital investments like buildings are treated as “depreciable assets” and as such are allowed to be deducted from income over a fixed term of five, seven or 39 years, according to depreciation schedules set by the IRS.

With the new tax code, all roofing repairs, including replacement, is now considered expensable, meaning building owners could write the cost off on their taxes in the same year referred to as immediate expensing. This opens up a whole world of opportunities for property owners, who now have an incentive to spend on their property and invest in its condition, knowing that they could gain a huge tax benefit for doing so.

Not only is this valuable for existing building owner but it also beneficial for new builders. Because the roof over the building is now considered expensable, property owners have an even bigger incentive to invest in a more durable roof for their property. When you consider that vacancies in any commercial and industrial building markets are still low, this should create an environment that rapidly starts attracting new tenants.

In addition to expanding the definition of qualified property eligible for Section 179, the amounts that may be expensed were significantly increased. As of Jan. 1, 2018, The Tax Cuts and Jobs Act expanded the maximum amount a business may expense to $1,000,000 from $500,000 and the phase-out threshold increasing to $2,500,000 from $1,000,000. These new amounts will be indexed for inflation starting in 2019.


Whether you’re having leaking penetrations like skylights and smoke vents that are causing property damage and safety hazards or need a complete roof replacement, then the new tax code is just what you’ve been looking for.