As a business owner, you’ve likely faced many financial challenges in recent years, and 2023 is no exception. With another year-end approaching, it’s wise to explore options to minimize your tax liabilities and keep your business financially fit. One strategic investment to consider is a commercial roof replacement or repair, which can reduce taxes and protect your property.
At Moser Roofing Solutions, we not only provide quality roofing solutions but also aim to help our customers make informed decisions for their buildings, budgets, and businesses. If you are contemplating a roof replacement, completing it within 2023 can offer substantial tax advantages as a wise investment.
The Tax Benefit of Commercial Roof Replacement in 2023
If you are a commercial building owner, you may be eligible for tax benefits if you replace your roof in 2023.
In the IRS Tax Code, Section 179, businesses can deduct the full cost of qualifying expenses, like equipment purchases and property improvements, rather than depreciating the costs over time. This includes commercial roof replacement and repairs. The 100% bonus depreciation rate for 2023 is in place of the standard 39-year depreciable life. Other details apply to the rules for Section 179 deductions in 2023. They cannot be for more than one’s income and it is subject to recapture tax (currently 25%) when the property is sold. With Section 179, you could potentially deduct up to $1.05 million for the 2023 tax year, making roof replacement in the 2023 calendar year a smart tax reduction strategy.
In addition to the Section 179 deduction, a commercial roof replacement project also presents an opportunity to improve your building’s energy efficiency and may qualify for federal tax credits. Many roofing materials like reflective membranes or insulated panels can significantly reduce energy costs for cooling and heating. If the roof replacement meets Energy Star and insulation requirements, you may be eligible for an Energy Efficient Commercial Buildings Deduction of up to $1.80 per square foot. Improving efficiency saves money on energy bills while taking advantage of tax incentives. A new roof keeps your business protected while cutting costs and can save you money over the long term.
There is also a federal solar tax credit for commercial buildings that allows commercial building owners to claim a credit on their federal income taxes for installing solar panels on their property. The credit is equal to 30% of the cost of the solar panel system and can be claimed for systems installed between 2022 and 2023. That credit will begin to reduce in value starting in 2024, so the time to act is now.
If you are considering replacing your commercial roof in the near future, it’s worth considering the potential tax benefits that come with making that decision now to qualify for the 2023 tax year. Make sure to consult with a tax professional to determine your eligibility and ensure that you follow all necessary guidelines.
The Business Benefits of Replacing Your Commercial Roof Now
As a building owner or a property manager, you understand the importance of keeping your commercial property in good working order. This starts with the roof. A typical commercial roof should last between 10 and 40 years, depending on regular inspections, maintenance, and repairs. This varies, depending on the materials used, the weather in your location, and other factors. However, if you are approaching the lifespan of your commercial roof, a roof replacement may be good for your business.
- Energy Efficiency: Newer roofing materials are often more energy-efficient, helping you save on heating and cooling costs. Energy-efficient roofing can also make your building more attractive to eco-conscious customers.
- Improved Aesthetics: A new roof can enhance the appearance of your commercial property, making it more appealing to customers and tenants. A well-maintained building can also increase its market value.
- Enhanced Safety: An old and deteriorating roof can pose safety hazards. Replacing it reduces the risk of accidents, such as falling debris, and improves the overall safety of your property.
- Reduced Business Disruption: Roof replacements can be disruptive, but scheduling the replacement at a convenient time can minimize the impact on your daily operations. A proactive approach can prevent unexpected disruptions due to severe roof damage.
- Warranty Coverage: New roofing systems often come with warranties that provide peace of mind and financial protection against unexpected roof issues. This can save you money on potential repairs in the long run.
- Compliance with Building Codes: An old roof may not comply with updated building codes and regulations. Replacing it ensures that your property meets current standards, avoiding potential fines and legal issues.
- Lower Insurance Costs: Some insurance providers offer discounts on premiums for properties with new and well-maintained roofs. Replacing your roof can result in cost savings over time.
- Increased Property Value: A new roof can significantly increase the market value of your commercial property. If you decide to sell or lease it, the improved roof can be a selling point.
- Tenant Attraction and Retention: A well-maintained property with a new roof can attract and retain tenants more easily. It creates a more comfortable and secure environment, which is often a top priority for businesses leasing commercial space.
- Environmental Benefits: Choosing environmentally friendly roofing materials and technologies can position your business as environmentally responsible. Some roofing options are made from recycled or sustainable materials and can improve your green credentials.
Putting off necessary roof repairs or even a commercial roofing replacement now can lead to more serious damage, emergency fixes, and higher costs down the road due to growing inflation and supply chain challenges. By acting now, you can avoid future headaches and lock in today’s pricing. A roof replacement is an investment that will protect your property today and for years to come.
The Benefit of Partnering with Moser Roofing Solutions
At Moser Roofing Solutions, we provide much more than just our high-quality roofing services. We focus on educating and informing our clients so they can make better decisions about their commercial roof and their business. As true partners, we offer comprehensive roofing solutions tailored not only to your current needs but also to your future business plans. Our aim is to maximize the value and performance of your investment. Considering a flat roof replacement? Expensing it in the current tax year can be a smart move for your business’s future.
Whether you decide to replace your roof or extend the life of your current roof, we always recommend regular roof maintenance as part of your business planning. According to the National Roofing Contractors Association (NRCA) and the American Institute of Plant Engineers Association for Facilities Engineers (AIPE/AFE), routine maintenance can increase the life of a commercial roof anywhere from 30% to 100%. Proactively maintained roofs last an average of 21 years compared to 13 years for reactively maintained roofs, according to the Roofing Contractor Magazine. By staying ahead of potential issues, regular roof maintenance helps you avoid costly roof failures, minimize disruptions to your business operations, and maximize the return on your roofing investment.
Moser Roofing Solutions is home to The Roof Guardian, a commercial roof maintenance program that provides many benefits including:
- 2 commercial roof inspections each year
- Minor roof repair and debris removal are included at the time of inspection
- Comprehensive reporting with photos from the inspection and repairs
- Emergency leaks will have a 2-4 hour response time
- Priority scheduling for service
- Safety First, with 100% tie-off to prevent fall hazards
- No sub-contractors, just Moser roofing experts
Investing in your roof today is a smart decision for tomorrow. By enrolling in the Roof Guardian commercial roof maintenance program, you can extend the life of your roof, protect your property and occupants, and minimize unexpected expenses. Sign up to join the Roof Guardian to protect your flat or low slope commercial roof.
As the leading expert in Pennsylvania and across the Mid-Atlantic region, Moser Roofing Solutions provides the highest quality materials and expert craftsmanship to give you the trust, confidence, guidance, and planning support to inform your decision-making to protect your property, your people, and your possessions. We know your roof protects your building. That’s why we protect your roof!
Contact us today to get the process started for your 2023 commercial roof replacement. Now is the time to maximize your tax savings while securing your business for the future.
