Can a New Commercial Roof Help Your Raleigh Business Save on Taxes?

A commercial roof replacement is a significant investment, but did you know that it can also provide substantial tax benefits for your business? Many Raleigh business owners overlook the fact that upgrading their roof can lead to immediate and long-term tax savings through deductions, depreciation, and energy-efficient incentives.

At Karma Construction Group & Roofing Raleigh, we specialize in helping commercial property owners maximize their roofing investments by guiding them through available tax-saving opportunities. In this guide, we’ll explore how a new commercial roof can help your business reduce tax liability, improve energy efficiency, and increase long-term savings.

1. Understanding Section 179 and Bonus Depreciation for Commercial Roofs

In the past, commercial roof replacements had to be depreciated over 39 years as part of a building’s structural improvements. However, thanks to changes in the U.S. tax code, businesses now have the ability to write off a significant portion of roofing expenses much sooner.

What is Section 179?

Section 179 of the IRS Tax Code allows businesses to deduct the full cost of qualifying property, including roofing, in the year it was purchased and installed—rather than spreading it out over multiple decades. This means that instead of waiting 39 years to recover your investment, you can claim the full deduction immediately (subject to annual deduction limits set by the IRS).

For 2024, the maximum deduction limit for Section 179 is $1.22 million, meaning that if your roof replacement falls within this amount, your business could deduct the entire cost in the same tax year.

Bonus Depreciation: An Additional Incentive

In addition to Section 179, Bonus Depreciation allows businesses to deduct a percentage of qualifying improvements. Under current law, businesses can deduct 60% of qualified improvements in the first year, with this percentage decreasing in future years unless extended by Congress.

This means that even if your roof replacement doesn’t qualify for a full deduction under Section 179, you can still take advantage of Bonus Depreciation to accelerate the depreciation schedule and claim a larger deduction upfront.

Key Takeaway: If your business needs a new roof, you could take advantage of both Section 179 and Bonus Depreciation, significantly reducing your taxable income for the year. Consulting a tax professional can help you determine the exact savings potential for your specific situation.

2. Energy-Efficient Roofing and Tax Credits

Another way to save money on taxes while upgrading your commercial roof is through energy-efficient roofing materials. The federal government and some states, including North Carolina, offer tax credits and rebates for businesses that install energy-efficient building improvements.

Benefits of Energy-Efficient Roofing

A commercial roof that incorporates cool roofing technology, reflective coatings, or solar panels can provide multiple financial benefits, including:

• Lower Energy Costs: Reflective roofing materials reduce heat absorption, lowering cooling costs in Raleigh’s hot summers.

• Federal and State Tax Credits: Depending on the roofing material, businesses may qualify for energy-efficiency incentives.

• LEED Certification Benefits: Installing energy-efficient roofing may contribute toward LEED certification, which can increase property value and sustainability credentials.

Examples of Energy-Efficient Roofing Options

At Karma Construction Group, we install several roofing options that help businesses qualify for tax credits, such as:

• TPO Roofing: Highly reflective, reduces energy costs, and qualifies for federal incentives.

• Metal Roofing with Cool Roof Coatings: Long lifespan and energy-efficient coatings to reflect heat.

• Green Roof Systems: Vegetative roofing solutions that provide insulation and energy conservation benefits.

Key Takeaway: Energy-efficient roofing materials can reduce your business’s operating costs while qualifying for tax credits that lower the overall cost of installation.

3. Roof Repairs vs. Full Replacement: What’s Deductible?

Maximize tax savings with a commercial roof upgrade—contact Karma Construction Group today at 202-798-7663 for expert roofing solutions!

Business owners often wonder whether roof repairs are tax-deductible or if they need to replace the entire roof to take advantage of tax benefits.

Are Roof Repairs Tax-Deductible?

Yes! Routine roof maintenance and minor repairs are considered business expenses and can be fully deducted in the year they are incurred. This includes:

• Fixing leaks

• Replacing damaged shingles or membrane sections

• Small patchwork and maintenance services

Roof Replacement and Capital Improvements

If a roofing project is considered a major improvement, it is typically classified as a capital improvement and depreciated over time—unless it qualifies under Section 179 or Bonus Depreciation.

At Karma Construction Group, we can help you determine whether your project qualifies for immediate deductions or if depreciation rules apply.

Key Takeaway: Both roof repairs and full replacements offer tax benefits, but full replacements may provide larger upfront deductions through Section 179.

4. Increased Property Value and Tax Benefits

A new commercial roof doesn’t just offer tax savings—it also boosts your property value and provides long-term financial advantages.

How a New Roof Adds Value to Your Business

• Higher Property Resale Value: A newer, more durable roof increases a building’s resale value, attracting higher offers from buyers.

• Improved Tenant Appeal: If you lease commercial space, a new roof can help attract and retain tenants, reducing vacancy rates.

• Lower Insurance Premiums: Some insurance providers offer discounts for newer, safer roofs that meet modern energy and safety standards.

Tax Implications of Increased Property Value

While an improved roof may increase property taxes due to a higher assessed value, the overall benefits—including lower maintenance costs, energy savings, and potential tax deductions—often outweigh the additional expense.

Key Takeaway: A new roof is an investment that provides both immediate tax savings and long-term financial benefits for your business.

Conclusion: Take Advantage of Tax Savings with a New Roof

A new commercial roof can provide significant tax benefits, including immediate deductions, energy credits, and long-term savings. By leveraging Section 179, Bonus Depreciation, and energy-efficient incentives, your Raleigh business can lower its tax burden while improving property value and reducing operational costs.

At Karma Construction Group, we specialize in helping businesses navigate these financial advantages while delivering high-quality, long-lasting commercial roofing solutions.