TEMA was able to provide PLIDCO with a roofing system solution that met the customer’s needs and budget while also becoming a trusted resource that could be utilized for years to come.
In fact, TEMA helped PLIDCO realize a significant tax credit by rapidly depreciating existing mechanics (like HVAC, electrical, plumbing and fire protection components) and new materials, which ended up justifying the cost of a new roof.
Section 179 Deductions for a New Roofing System
According to IRS.gov, the Tax Cuts and Jobs Acts (TCJA) lists qualified property as “tangible personal property such as machinery and equipment purchased for use in a trade or business, and if the taxpayer elects, qualified real property.” TCJA then amended the code to include “improvements to nonresidential real property, such as roofs; heating, ventilation and air-conditioning property; fire protection and alarm systems; and security systems. Revenue Procedure 2019-08 explains how taxpayers can elect to treat qualified real property as Section 179 property.”
Qualifying Commercial Roof Tax Deductions/Write-Offs
Section179.org states that all businesses that purchase, finance, and/or lease new or used business equipment during tax year 2022 should qualify for the Section 179 Deduction (assuming they spend less than $3,780,000).
*For the current tax year, bonus depreciation is being offered (some years it is not) and includes both new and used equipment (as long as the used equipment is new to the tax-deduction-filing company). This bonus depreciation is helpful for companies spending a large amount of money (more than the current spending cap).
Deduction Limits to the Tax Code
Section 179 deductions must be used for business purposes more than 50% of the time. In 2021, when the PLIDCO roofing project took place, the full deduction limit was $1,050,000 (and was good until the tax-filing company reached $2.62 million in purchases). The intended purpose of this deduction was for small/medium businesses to be able to invest in themselves.
*TEMA Roofing is happy to discuss this program with your business and suggests notifying your tax professional if you are interested in utilizing this particular tax law for upcoming roofing projects.
Roof Maintenance, Management and Inspection
Planning for the future upkeep of a new commercial roof is key to establishing a trusted working relationship between customer and contractor – and that’s why TEMA’s Roof Asset Management program plays such a vital role in long-standing customer satisfaction.
The Roof Asset Management program (and cloud-based client portal) allows customers to stay connected with TEMA while having immediate access to all commercial roofing information for the company’s personal business use (including images, documents, warranties and all repair/replacement/installation information).
Keeping Existing Commercial Roof Warranties Intact
TEMA’s client portal tracks everything that a client needs to know when it comes to their roof(s). Not only is general roofing system information stored in the cloud, but all documentation pertaining to service calls and repairs is also available, too.
This means that maintaining roofing system warranties is as simple as clicking a button. And, since performing preventative maintenance is often a condition for keeping a roof warranty intact, it’s imperative that businesses keep accurate, comprehensive documentation of any work or inspection that has been completed.
TEMA was able to work in tandem with PLIDCO so that the existing roof warranties were transferred over to PLIDCO once the company took possession of the new manufacturing facility.