Commercial Roofing Tax Credits & Incentives: What the Big Beautiful Bill Means for Your Business

On July 4, 2025, the One Big Beautiful Bill Act (H.R. 1) was signed into law. The legislation locks in several provisions from the 2017 Tax Cuts and Jobs Act (TCJA). It also introduces new measures affecting both individual entities and businesses.

Among the bill’s major changes, several key portions will affect most businesses, including roofing and solar providers:

  • Removal of federal income tax on certain types of overtime pay
  • Broadened use of 529 education savings accounts
  • Expanded eligibility for Pell Grants to include job training and professional credentialing
  • Major reforms on defense, border security, and immigration policy
  • Reduction or elimination of many clean energy tax incentives

Tax Provisions of Interest to the Roofing Industry

The One Big Beautiful Bill Act reshapes several tax rules that will directly affect roofing contractors and related trades:

  • Federal income tax rate. Permanently keeps the top federal income tax rate at 37%.
  • Deduction for business income. Locks in 20% deduction for qualified business income (under Section 199A, for pass-through entities).
  • Standard deduction. Raises the standard deduction to $15,750, retroactively covering 2025 and with annual inflation adjustments.
  • SALT deduction. Raises state and local tax (SALT) deduction caps from $10,000 to $40,000 (in 2025), with gradual increases by 1% annually through 2029, before reverting to $10,000 in 2030.
  • Deductions for high-income taxpayers. Phased reductions in deductions for high-income taxpayers (starting at $500,000) begin in 2025.
  • Overtime pay. Introduces an above-the-line deduction for qualified overtime pay between 2025 and 2028 (up to $12,500 for individuals or $25,000 for joint filers). This phases out for higher incomes (over $150,000).
  • Estate and gift tax exemptions. Permanently sets estate and lifetime gift tax exemptions at $15 million for individuals and $30 million for joint filers, beginning in 2026 and adjusted for inflation.
  • 529 plans. Expands 529 savings plans to cover additional K–12, higher education, and workforce training expenses.

Of special note, earlier bill versions included limits on pass-through entity tax (PTET) deductions, which would have increased taxes for many small and mid-sized contractors. Thanks to industry advocacy, those restrictions didn’t make it into the final bill.

How H.R. 1 Impacts Roofing Contractors

For roofing contractors, suppliers, and related trades, the One Big Beautiful Bill Act is more than just a set of tax code changes—it’s a framework that could influence profitability, cash flow, and long-term planning for years to come. From preserving qualified business income deductions to raising the SALT cap and eliminating federal tax on certain overtime earnings, industry professionals can more easily manage expenses and invest in growth.

At the same time, the expansion of 529 plans and Pell Grant eligibility reflects a growing emphasis on both workforce training and continuing skills development.

These benefits further bolster the roofing industry, allowing companies to better recruit and retain talent. For businesses, Section 179 outlines how the bill increases the maximum amount that can be expensed for roofing and other qualifying commercial property upgrades to $2.5 million, continually adjusting for inflation. Building managers and owners can take advantage of these commercial roof replacement incentives and more cost-effectively upgrade their facilities with an energy-efficient commercial roof.

Quality Roofing Solutions From Knickerbocker Roofing

With more than a century of industry experience, Knickerbocker Roofing has helped commercial and industrial clients in the Chicago area protect their facilities with long-lasting, expertly installed roofs. Our trade expertise encompasses a wide range of roofing systems, including flat and low-slope roofs. We also tailor every service to meet performance requirements and budget goals, achieving both long-term durability and savings for numerous industries.

From new installations to emergency repairs, our team knows how to handle every aspect of roofing, including:

  • New roof construction for commercial and industrial facilities
  • Repairs to address leaks, damage/defects, and weathering
  • Storm response and other emergency services
  • Preventive maintenance and inspection plans on a per-project, semi-annual, or annual basis
  • Specialized solutions for challenging roofing environments

At Knickerbocker Roofing, we prioritize clear communication, precise workmanship, and dependable scheduling. By combining modern materials with proven installation methods, we’ve consistently delivered roofs that perform reliably for years.

To learn more about how we can help protect your facilities with durable, high-performance roofs, contact us or request a quote today.