Congress’ new One Big Beautiful Bill Act (OBBB) signed on July 4, 2025 reshuffles the tax deck, rewrites trade rules, and tweaks labor incentives in ways that hit the roofing industry squarely on the balance sheet. Because several provisions apply to equipment you’ve already placed in service and wages you’ve already paid this year, knowing the details now can put real money back in your pocket. Here’s a rundown of some of the key provisions.
- Instant tax relief you can feel this season
- 100 % bonus depreciation forever. Any asset with a class life of 20 years or less; tear‑off robots, spray rigs, forklifts, even a new HVAC system you self‑install can be written off in Year 1 instead of over decades.
- Bigger QBID. The qualified‑business‑income deduction isn’t just permanent; it climbs from 20 % to 23 % in tax year 2026, boosting take‑home pay for S‑corp and LLC owners.
- R&D expensing resurrected. Money you pour into cool‑roof coatings, faster adhesion methods, or custom fastening systems is once again deductible immediately if the work is done in the United States.
- Work backlog is already heating up
Permitting offices in key markets report a spike in manufacturing, defense, and data‑center projects. Why? A separate OBBB provision grants a one‑time, 100 % deduction for qualified production real‑property projects that start by 2028 and are placed in service by 2031; ordinary 100 % bonus depreciation on machinery is now permanent and needs no start‑date race.
- Tariffs: New risks in the material supply chain
OBBB slaps a 10 % surtax on imports from countries outside the World Trade Organization and lets the White House negotiate extra tariffs on a country‑by‑country basis through 2025. If you rely on offshore fasteners, solar‑panel mounts, or coated coil, include escalation language into quotes and secure domestic inventory early.
- Solar incentives face a countdown
Wind and solar Production and Investment Tax Credits (PTC / ITC) start phasing out for projects that begin construction after June 30, 2028. Customers looking to bundle PV arrays with reroofs need to start sooner rather than later. Meanwhile, credits for nuclear, hydropower, hydrogen, and carbon capture grow richer, nudging owners toward adaptive‑reuse and “all‑of‑the‑above” energy mixes.
- Overtime & tip deductions, but only up to a limit
From 2025 through 2028 you can take an above‑the‑line deduction for overtime‑premium wages capped at $12,500 per employee ($25,000 joint) each year. Employees get a parallel deduction for tips up to $25,000 ($50,000 joint), which is a big deal for service‑heavy roof repair crews. Payroll systems must tag capped amounts and store signed employee certifications, so loop in HR before the next run.
- More investigators, but no audit quota
Congress boosted Wage and Hour Division funding and told officials to focus on overtime and tip accuracy, yet set no numerical inspection target. Piece‑rate and per‑diem pay structures common in roofing need a tune‑up now to avoid six‑figure back‑wage assessments that can tank bonding capacity.
Five action steps for contractors
- Place equipment in service by December 31. Capture 100% bonus depreciation this tax year.
- Add tariff‑sharing clauses and material‑price indices to every fixed‑price bid.
- Create new payroll codes for capped overtime and tip deductions and archive certifications for five years.
- Move solar‑ready reroofs to “begin construction” status before July 2028.
- Update subcontract boilerplates to demand prevailing‑wage and apprenticeship documentation on any clean‑energy project chasing high‑rate credits.
Bottom line: OBBB’s mix of richer write‑offs, tariff exposure, energy‑credit shifts, and labor incentives resets roofing’s cost curve. Early adopters will land more work and keep more profit; stragglers will pay higher material prices and sweat through compliance audits. Talk with your tax and legal advisers now, because every week counts.
The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
