Roof Replacements May Be 100% Expensed In The Same Year!

Effects of the New Tax Law on Commercial Roofing Projects:

The new tax bill that took effect January 1, 2018. This includes significant changes that may be important to owners of commercial buildings. Spann Roofing wanted to highlight how the sweeping changes are relevant to roof replacement projects. Significant updates were made to the depreciation laws. The changes are summarized below:

  • Building owners can expense up to $1,000,000 of the cost of qualified improvements towards real property placed in service during the taxable year.
  • The new tax law allows 100% expensing of qualified real property improvements placed in service between September 27, 2017, and December 31, 2022.
  • Roof replacements are now included in the definition of qualified real property improvements


What this Means for Building Owners…

The changes to Section 179 depreciation rules. 2018 is an excellent time to replace your roof. The tax reform bill is a roof replacement. Then the option is to reduce your tax liability during the year our roof was replaced.

New Tax Law & Expensing Roof Replacements 

Roof replacement now being considered a qualified real property improvement. 100% of the cost of the roof replacement can be expensed in the year the roof is installed. Listed below is an example of what the new Section 179 rules could mean for you:


20172018 & Prior
Cost of New Roof  $400,000 $400,000
Expensed in Year Installed$400,000$26,667  
(15-year depreciable life)
Tax Rate*30%30%
Reduced Tax Liability$120,000$8,000

     *The tax rate above is used for illustrative purposes only. Every tax situation is different. Please consult your tax advisor.

***Please note that we did not include every detail of the new tax reform bill in this memo. Roofing-related changes were highlighted and simplified for educational purposes. Below is a link that goes into more detail. Please consult your tax advisor to determine the tax ramifications for your business.***

Tax Bill Impact on Individuals:


Tax Bill Impact on Businesses:


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