National Roofing Legal Resource Center

Roofs included in new expensing rules under tax reform law

NRCA is thrilled the Tax Cuts and Jobs Act expands the definition of qualified real property eligible for full expensing under Section 179 of the tax code to include improvements to nonresidential roofs. The conference report states that the provision "expands the definition of qualified real property eligible for section 179 expensing to include any of the following improvements to nonresidential real property placed in service after the date such property was first placed in service: roofs; heating, ventilation, and air-conditioning property; fire protection and alarm systems; and security systems." The law also expands the expensing limits under Section 179, with the maximum amount a business may expense increasing from $500,000 to $1 million and the phase-out threshold increasing to $2.5 million. The new rules are effective for properties placed in service in taxable years beginning after Dec. 31, 2017. This is a major victory for NRCA, as our years of efforts to educate lawmakers regarding the economic benefits of expensing roofs has paid off.


1/30/2018



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