Tax Law Allows Business to Deduct Full Cost of New Roof

Section 179 Roof Replacement is Impetus for Company to Invest in New Roof 

A provision in the current tax law allowing for businesses to deduct the full costs of a roof replacement (Section 179 roof replacement) in the year it’s completed was the impetus for the owners of a building housing a light manufacturing company to move forward with installing a new roof.

Fidelity RoofTax Law Creates Opportunity for Roof Replacement

For several years, we had been providing significant annual maintenance on the roof of a 65,000-square-foot industrial building in Livermore, California. The original cap sheet surfaced built-up roof, which had been installed by another company, had been leaking for many years. The leaks were due to chronic problems associated with roof splits, plywood nails backing out, and a variety of other issues that made it necessary to perform annual repairs to keep the roof water tight.

Because the Tax Cuts and Jobs Act approved by Congress in December 2017 allows for businesses to deduct the full costs of a roof replacement in the year it’s completed, instead of depreciating over 39 years, the building’s owners decided to install a new roof.

Materials Used

The existing roof was not removed, but was overlaid with a Duro-Last 3/8” Fanfold XPS cover board mechanically fastened 60 MIL Duro-Tuff single ply PVC membrane, with a 15-year manufacturer’s material warranty and 7-year labor warranty.

Special Considerations and ResultsFidelity Roof material used to repair roof

The new roof had to be integrated around 29 vented skylights; 45 HVAC units, 8 roof drains; 46 thru wall scuppers; and 45 roof penetrations. In addition, the top of the high parapet walls received a new slope wood nailer, and Duro-Last’s 2-piece compression Snap-On Kynar coated perimeter flashing, which meets ANSI SPRI wind-up requirements and is part of the manufacturer’s extended warranty.

The team effort involved in the project helped contribute to its success. It was completed in approximately 45 days and came in at about 20 percent under budget. Business was never interrupted, and the owners and tenants were very pleased with the results.

Do you know what to look for to determine if your roof needs to be replaced? Read about the warning signs indicating that your roof needs to be replaced.