Significant Tax Savings on Commercial Roof Replacements with Section 179

Good news for business owners considering a commercial roof replacement! Under the current U.S. tax code, businesses may be able to deduct the full cost of a commercial roof replacement in the year it’s completed instead of depreciating it over decades — thanks to Section 179 of the Internal Revenue Code.

What This Means for Your Business

Under traditional depreciation rules, commercial roof replacements generally had to be written off over a long period (e.g., 39 years). However, thanks to changes in the tax law, qualifying business owners may now:

• Expense the full cost of a commercial roof replacement in the same tax year it’s placed into service.
• Reduce taxable income immediately — improving cash flow and reducing the effective cost of the project.
• Potentially accelerate tax deductions on energy-efficient or code-required roofing improvements.

These tax advantages can make a substantial impact on the economics of commercial roofing projects.

How Section 179 Works

Section 179 of the Internal Revenue Code allows businesses to elect to deduct the full cost of qualifying property in the year it’s placed in service rather than depreciating the cost over a long recovery period.

Key Points:

• Businesses may elect to immediately expense qualifying property — including commercial roofing expenditures — in the year the roof is completed.
• This deduction applies to improvements placed in service during the current tax year.
• The maximum deduction limit and phase-out threshold are adjusted for inflation each year.

Roofs Are Now Eligible for Section 179 Property

As of January 1, 2018, and continuing under current law, improvements to nonresidential real property — including commercial roofing — are eligible for Section 179 expensing if placed in service after the roof was first placed in service.

This Means:

• Full roof replacements on commercial buildings can qualify for Section 179 expensing.
• Energy-efficient improvements that satisfy applicable building codes may yield additional tax benefits.

Important Notes

• Section 179 has annual deduction limits and phase-outs based on total qualifying property placed in service during the year. These limits are indexed for inflation and change year to year.
• The amount you can deduct may depend on your business income and other factors.
• Tax laws are complex and subject to change.

What to Do Next

To determine how these tax provisions apply to your situation:

📞 Contact your tax professional or CPA — they can help you understand your eligibility and how to claim the deduction properly.

💡 Ask about energy incentives and local code benefits — these can further improve the total savings on your roofing investment.