More legislative wins for the roofing industry

By Dani Sheehan. 

Permanent tax relief and new deductions create long-term gains for the roofing industry. 

On July 4, 2025, the President signed the One Big Beautiful Bill Act (H.R. 1) into law – a sweeping reconciliation bill aimed at expanding tax cuts, simplifying tax code and shifting federal spending priorities. Thanks in large part to consistent advocacy from the National Roofing Contractors Association (NRCA) and the unified voices of contractors during Roofing Day in D.C. each year, this legislation delivers significant tax wins that will benefit roofing businesses of all sizes.  

A victory for pass-through businesses 

One of the biggest wins is the permanent extension of the 20% Qualified Business Income (QBI) deduction under Section 199A. This provision was set to expire in 2026, threatening to raise taxes on the vast majority of roofing businesses structured as LLCs, S-corporations and sole proprietorships. NRCA efforts have supported the Main Street Tax Certainty Act over the last two years to keep this deduction in place. With this win, contractors can remain more profitable and level the playing field with big C-corporations. 

Innovation gets a green light 

This bill also restores a crucial incentive for growth: full and immediate expensing of domestic research and development (R&D) costs. This applies retroactively for some small businesses and will encourage those businesses that are developing new products, systems or techniques to invest in innovation without waiting years for tax relief. 

This win directly reflects NRCA’s support of the American Innovation and R&D Competitiveness Act, which called on Congress to restore the longstanding tax treatment that allowed businesses to fully deduct R&D expenses in the year they incurred. That policy had supported innovation for nearly 70 years until it was changed in 2022 – and now, thanks to industry advocacy, it’s back. 

A boost for equipment and facility investments 

In addition to restoring immediate R&D expensing, the bill also expands Section 179, a long-standing part of the tax code that allows small and mid-sized businesses to deduct the full cost of qualifying equipment and property, including commercial roofs. 

Under the new law: 

• The deduction cap increases from $1 million to $2.5 million, indexed for inflation 
• The phaseout threshold rises to $4 million in total equipment purchases 

This will allow qualifying building owners to fully write-off improvements to nonresidential roofs in the year of installation rather than depreciating the expense over a number of years. Use this letter template from NRCA to help explain these changes to building owners and encourage them to take advantage of the new benefits.

What to watch in the years ahead 

While the bill is largely a win for roofing contractors, it’s important to keep an eye on a few long-term changes that could impact your business: 

• Energy-efficiency tax credits are phasing out 
  • Section 179D (for commercial building upgrades) and 45L (for new energy-efficient homes) will end mid-2026. 
  • These incentives have helped many contractors promote energy-efficient roofing systems. Their loss may cool some of that momentum unless replacements are introduced in future legislation. 
• Labor and immigration changes could strain workforce supply 
  • The bill injects billions into border security and enforcement and increases visa-related fees – including for H-2B, which many contractors use for seasonal workers. 
  • While these policies aim to bolster national security, contractors may face higher costs and fewer available workers as a result. 

Advocacy works – and you can be a part of it 

It’s no coincidence that the biggest wins in this bill directly align with what NRCA and contractors across the country have pushed for during Roofing Day in D.C and throughout the year. 

When hundreds of roofing professionals walk the halls of Congress and speak with one voice, lawmakers listen. But NRCA’s advocacy doesn’t stop when the event ends. Behind the scenes, NRCA works year-round to educate lawmakers, build bipartisan support and protect the interests of roofing businesses, from tax policy to workforce development to regulatory reform. It’s through this ongoing dialogue that has made these changes possible: 

• Stopping the proposed limitations on pass-through entity tax deductions 
• Securing permanent relief for small business income and R&D expenses 
• Expanding support for workforce training via Pell Grants and 529 accounts 

But our work isn’t done. As future policies develop around energy, labor and infrastructure, the roofing industry must continue its efforts. By staying informed and engaged – whether it’s attending Roofing Day, contacting your representatives or joining associations like NRCA – you help ensure our industry has a seat at the table in these conversations. 

If you’re not already a member of the NRCA, now is the time to consider joining. NRCA gives you direct access to how changes from Washington D.C. affect your business and the tools to learn and grow while shaping the future of the industry. 

The wins in this bill prove it: advocacy works when we show up together. 

To learn more about how these changes could affect your business, read NRCA’s full summary of the major provisions.