Our world-class team of roofing contractors at Storm Damage Specialists are experts in all aspects of commercial roofing. We go above and beyond the logistics of applying your new roof; we will provide you with valuable knowledge of additional methods to help reduce the out-of-pocket cost of an expensive but fundamental need for roofing services.
Even though roofing services are a significant expense, that doesn’t mean they cannot be made more affordable. There are options provided through federal and state tax deductions like IRS Section 179, storm damage insurance claims, and solar tax credits to help reduce the cost. In addition, we are well-versed in helping identify the best methods to reduce your direct roof replacement or repair cost. At the same time, we will never resort to low bidding or using lower-quality roofing materials. Instead, our goal is to deliver a high-quality roof, installed with skill and integrity while at the same time helping you lower your out-of-pocket costs to the extent possible.
Here are some current programs you should know about that could help reduce the cost of your commercial roofing services:
First things first: How much does it cost to replace a commercial roof?
The frustrating but honest answer is that it depends. Many factors come into play when it comes to the cost of commercial roofing services, such as the size and type of roof, the roof’s current condition, materials used, and labor costs. Currently, you can expect commercial flat roof replacement can cost anywhere between $3.25 and $30 per square foot. Most commercial buildings use single-ply membranes, metal roofs, or built-up roofs. Single-ply membrane roofing will cost the least, but built-up roofing offers much better longevity. Whatever option you choose for your commercial roofing system, roof repair, and replacement is a significant financial burden for many businesses or organizations. That’s why part of our expertise at SDS involves helping customers like you find ways to reduce the cost of your roof replacement.
Using Tax Credits and Deductions to Save on Commercial Roofing
Thanks to Section 179 Deduction under The Tax Cuts and Jobs Act, now is a great time to invest in roof repair or replacement for your commercial property. You can now deduct up to $1,160.000 on income taxes as expenses, including any improvements made for commercial roofing. Section 179 is an excellent way to ensure your investment yields long-term benefits.
Don’t let tax law seem intimidating—Section 179 provides an excellent opportunity for businesses to save on their taxes. Making certain purchases for your building can have lasting benefits. The US government allows you to deduct up to 100% of qualified expenses from your current year’s taxes.
What is IRS Section 179?
For small- to medium-sized businesses, Section 179 of the IRS Tax Code can be a powerful tool for reducing the cost of a commercial roof project like new or significant roofing maintenance. Taxpayers can immediately offset qualifying property costs against their current year’s earnings with Internal Revenue Code Section 179.
Leveraging Section 179 of the tax code allows business owners to acquire substantial relief when making significant purchases like commercial roofs. The asset’s cost may be deducted immediately or taken over an extended period as part of capital deprecation. Both strategies significantly reduce taxable income and are sometimes supported by bonus depreciation allowances. To qualify for deduction under this section, the property must adhere to specific criteria within the regulatory framework while also being placed into service during that year’s applicable time frame.
How to use Section 179 for a Commercial Roof Project
If you have been considering replacing your building’s roof, Section 179 may make this the perfect time to start. This deduction applies to most businesses and can take effect once the new roof is installed. Your deduction will depend on several factors, but remember that it must not exceed your business’ net income.
When you opt for a roof upgrade and essential roof maintenance, you may be able to reduce your taxes with a double benefit—electing to take the deduction for installing a new roof on top of writing off any remaining cost associated with the existing roof. In addition, section 179 is a great option to invest in a preventative maintenance program for your roof to avoid more catastrophic expenses.
While investing in a new roof may be eligible for deduction under Section 179, costs associated with repairing and maintaining your existing roof can also qualify. According to IRS guidelines, these repairs include waterproofing, replacing shingles, or fixing holes—as long as the purpose is to keep it in normal operating condition. Other improvements include replacing your commercial roof with a more durable, longer-life roof covering, adding energy efficiencies, and structural repair or replacement.
Section 179 Limitations
The official IRS limitations for Section 179 are:
- Section 179 deduction dollar limits. For tax years beginning in 2023, the maximum Section 179 expense deduction is $1,160,000. However, this limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,890,000.
- Phase down of special depreciation allowance. The special depreciation allowance is 80% for specific qualified properties acquired after September 27, 2017, and placed in service after December 31, 2022, and before January 1, 2024.
Let our team explain how these benefits and limitations apply to your commercial roof.
Commercial Roof Insurance Claims
If your commercial roof has suffered storm damage, filing a claim with your insurance company may be the best option. Storm Damage Specialists understand the importance of being proactive after a storm. We have dealt with countless storm-damaged roofs and are here to assist with insurance claims. We will guide you from inspection to filing, ensuring your property is taken care of efficiently.
When your property has suffered due to a major storm, our team of experts is ready to step in and help navigate the insurance claim process. Our extensive commercial claims recovery experience ensures you get back on track quickly and smoothly.
The Claim Process
1. Find a Good Roofing Contractor and Get an Inspection
After a wind or hail storm has passed over your commercial building, contact us immediately for a fast response to inspect your building. The roof might look fine, but there could be some problems only professionals can identify. Therefore, it is essential to contact a licensed professional roofer like us that will offer a free damage assessment and guidance on the next steps. If the damage warrants an insurance claim, we will help you file the claim to begin the process.
2. Make Emergency Fixes, Then Start Filing a Claim
Good contractors will take note of critical damage that must be addressed immediately. We will use our on-hand materials to make any necessary temporary repairs to your roof if needed to protect your commercial building from further damage. We will help you keep track of the records of these repairs so your insurance company can reimburse the cost of temporary measures at the end of the claim.
3. Schedule a Visit by an Insurance Adjuster and Get an Estimate
Once we have done a full inspection and noted all storm damage, you will contact your insurance company. Within a few days, the adjuster should come out to your property. Let us know when the adjuster is scheduled to visit your property to do the inspection, and we will try to meet them at the time of their review to ensure that all damage is noted correctly.
4. Let the Repairs Begin
Our team at SDS will order the roofing materials we need to get the job done promptly. These materials will arrive at your property before we start your project. We are responsible for completing the repairs within the timeline you and the insurance company agreed upon.
5. Your Roofer Gets Paid
Usually, we will be paid once the work is completed. For example, if you hold a mortgage on your commercial property, the insurance company’s settlement check will usually be sent to you and the mortgage lender. We will be there for you through the entire roof claim process, no matter what it takes. We are committed to keeping our clients informed and holding your carrier accountable for fulfilling their end of your insurance policy.
Read more about the Roof Repair Insurance Claims Process.
Solar Tax Credits
Businesses and nonprofits can use two tax credits when investing in solar energy systems. At this time there are two programs in place to help you. The investment tax credit (ITC) offers a way to save money based on the percentage of installation costs during applicable years. The production tax credit (PTC) provides minute-by-minute savings for electricity generated by qualified technologies over 10 consecutive years—with annual inflation adjustments built right into it.
Project owners usually cannot capitalize on two credits for the same property; however, they can claim different incentives for co-located renewable energy and storage systems depending upon clarifying guidance from the IRS.
Eligible property includes solar PV panels, inverters, racking, balance-of-system equipment, sales and use taxes on the equipment, installation costs, and certain prorated indirect costs. The roof installation cost is generally not eligible, except for incremental costs, or the amount over what you would have spent if the roof was not used for solar. These costs may include solar shingles, solar tiles, or the incremental cost of installing a reflective roof membrane that increases the electricity generated.
Contact us today for a free estimate, and let us find ways to save you money on your new roof without sacrificing quality.
Strom Damage Specialists, LLC
939 S Tyndall Ave
Tucson, AZ 85719
520-882-2231
Contact our expert team at Storm Damage Specialists today. Together we will explore your options and see if we can significantly reduce your cost for roofing by using existing programs, not by sacrificing craftsmanship or using low-quality roofing materials.
Don’t stress about your roof replacement or repair; contact us—we’ve got you covered!
