Business owners who have been putting off roof installations are benefited by the tax reform bill…. big time! With the corporate tax changes, now is a great time to take care of infrastructure and maintenance.
Deductible Business Expenses
The cap on deductible business investments was increased to $1 million. This means that businesses will now be able to fully deduct the cost of new HVAC equipment and the cost of installing a commercial roof.
Although businesses historically depreciate most investments over a number of years, now they can expense investments and deduct the full cost from taxable income the first year. This includes computers, equipment—and now HVAC systems and roofs.
Unlike in the earlier House-passed bill, there is no efficiency requirement, but the new equipment and roofs will generally be more efficient.
In short…. Now you can write off the entire cost of your roofing project in the first year. This is a huge tax write off at the end of the year!
Corporate Tax Rate
Lowering the Corporate Tax Rate will put more money in the hands of business owners. This will allow them to spend money on improvements to their building that they have been putting off. The law, entitled the “Tax Cuts and Jobs Act,” lowers the corporate tax rate from 35% to 21%.
Business owners that need to put on a new commercial roof can now afford to do so. The tax reform bill was a HUGE win for businesses.
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