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Have you been putting off replacing your roof? Even though it may not be at the top of your to-do list, businesses are strongly encouraged to understand the updated Section 179 tax code. The revisions now allow for those expenses to be claimed as 100% tax deductible.
For example, if a business installs a new roof costing $80,000 in 2025, it could immediately deduct the entire $80,000 from its taxable income that year, significantly reducing its tax burden.
This can make re-roofing projects and replacing your roof far more affordable. Consult with your tax advisor to see how your organization can benefit from these updates to the tax code.
What is Section 179?
Section 179 is part of the IRS tax code that allows businesses that own qualifying properties to deduct the full cost of property improvements from their taxable income in the same year the expense occurs. Qualifying improvements include improvements to roofing, HVAC systems, and fire protection systems.
Under the new law (effective for purchases made after December 31, 2024):
The Section 179 deduction limit increases expense limits on property maintenance and improvements from $1 million to $2.5 million for qualified property, including roofing improvements.
100% bonus depreciation is now permanently restored for qualified property placed in service after January 19, 2025.
Why Is Section 179 Important For Your Roof?
Section 179 gives business owners a powerful way to save money on taxes while investing in property improvements that protect their assets. These updates let businesses benefit from roof replacements in the same tax year they make the investment.
For instance, a restaurant Owner/Operator planning to replace several roofs over the next few years could accelerate those projects to take full advantage of the expanded deduction and bonus depreciation.
Are Roofing Projects Eligible for Section 179?
Yes. The IRS specifically includes roofs as examples of qualified improvements made to non-residential real estate property after the date the property was first placed in service. This means full re-roofing projects and roof upgrades can now be fully expensed up to $2.5 million under Section 179.
Do Safety Installations Also Qualify?
While a new roof may seem like a major expense, opting to replace it sooner rather than later can offer substantial financial advantages.
Under enhanced Section 179 deductions, eligible roofing expenses aren’t limited to roof membrane improvements. Did you know that safety improvements are also expense eligible? You can claim safety-related installations, including ladder grab bars, parapet wall guardrails, slip resistant walk pads, safety signage, and more. Not only increasing your building’s safety, but providing you 100% tax deductibility on those expenses.
Why Take Advantage of Section 179 Now?
With the enhanced deduction limits and 100% bonus depreciation taking effect, there’s never been a better time to invest in your building’s roof. Acting quickly ensures you can capture the maximum benefit and reduce your taxable income in the same year you make the improvement. RoofingSource is happy to partner with you to take full advantage of the revised Section 179 code, however it is important to note that our overview should not be taken as professional tax advice. Consult with a qualified tax code expert to fully understand how these new tax code revisions could benefit you.
Written By
Tom Dawson
Chief Executive Officer
tom.dawson@roofingsource.com