Understanding the Tax Advantages of Commercial Silicone Roof Coatings

Did you know that applying a silicone coating to your commercial roof can qualify you for Section 179 tax deductions? Learn more.

Part of a tablet. On the tablet's screen is the IRS website.

Applying a silicone coat to your commercial roof is a great way to extend its lifespan. The coat provides exceptional resistance to UV radiation, moisture, and temperature extremes and lasts between 10 and 15 years before reapplication is necessary. Silicone roof coatings also offer significant financial advantages; they can help reduce maintenance costs and even qualify you for Section 179 tax deductions.

What Is Section 179?

The logo for Section 179
From the official Section 179 website

Section 179 is an IRS tax code that serves as an incentive program for small business owners, often integrated into government tax bills and stimulus programs. It encourages business owners to invest in their operations by allowing them to write off the value of some or all equipment, software, and other items they purchase in a given tax year. With Section 179, you can deduct the total amount of eligible purchases in a single year without depreciating the cost over several years.

2024 Limit

Section 179 deduction limits on eligible purchases vary from year to year. In 2024, the maximum amount you can write off is $1,220,000.

More Than 50% Usage Rule

Be aware that the Section 179 deduction has a “More Than 50% Business-Use” rule, meaning that any qualified items must be dedicated to business functions at least 50% of the time. Of course, this applies to silicone roof coatings because they protect your business structures 100% of the time.

How to Qualify

To qualify, a potential deduction must be:

  • Not obtained from any party or business related to you
  • Tangible (having physical properties)
  • Purchased (not leased)

Silicone roofing IS a legitimate deduction as defined in Section 179. It is considered part of the equipment that keeps your business running, and the total amount you spend on it can be applied toward your 2024 deductions. Additionally, because silicone roof coatings reduce the energy costs associated with heating, cooling, and lighting, you could qualify for the Section 179D deduction, which allows you to claim between 50 cents to $1 per square foot, depending on the total energy savings.

How to Claim the Deduction

On Line 6 in Part 1 of IRS Form 4562, enter the total cost of having the coating applied. Also, describe the structure it was applied to—if you need more room, attach a separate page to the form.

About Our Silicone Coating

A 5-gallon pail of Mule-Hide's silicone roof coating.
Image from Mule-Hide’s website

L&S Home Improvements uses 100% silicone-based Mule-Hide coating products. They are extra tough, weatherproof, watertight, non-toxic, non-abrasive, and non-corrosive, and can be brushed, rolled, or sprayed onto any flat or low-sloped roofs made from TPO, concrete, steel, aluminum, and membranes. Homeowners can also benefit from our Mule-Hide coatings, which provide exceptional protection to sunrooms and weather rooms.

Our Mule-Hide coatings are available in white, gray, tan, and black and are backed by a 15-year warranty, with a 20-year warranty available for an additional cost.

Have Questions? Contact Us Today!

Smart decisions at tax time can save you money and better position your business for growth and success. And, of course, you want to maximize your available deductions and minimize what you owe. We understand, and we’re here to help!

There are almost 20,000 roofing companies in Michigan. Of those, L&S Home Improvements is one of only two that are certified to apply commercial roof coatings. In addition to silicone roof coating applications, we provide reliable roof installation and repair services to businesses and homeowners throughout Oakland, Wayne, Macomb, and surrounding counties.

Contact us today for more information about our Mule-Hide silicone roof coatings. Please consult your tax advisor if you have additional questions about Section 179 tax advantages that weren’t answered in this blog.


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