Is waterproofing and restoration considered a capital improvement?

Waterproofing and masonry restoration are typically considered capital improvements for commercial, municipal, and institutional properties. Capital improvements are upgrades that add value, prolong a building’s useful life, or adapt it to new uses. In commercial settings, projects such as restoring masonry facades, installing new waterproofing systems, repointing brickwork, or repairing structural concrete address more than routine maintenance. These projects are investments in a property’s long-term asset protection.

In New England, the need for such improvements is often driven by exposure to freeze-thaw cycles, wind-driven rain, seasonal moisture, salt, and the general aging of building materials. Over time, these conditions can lead to water infiltration, deterioration of masonry or concrete, and loss of structural integrity—concerns that go beyond day-to-day repairs.

By addressing issues such as water penetration, facade deterioration, or aging sealants and expansion joints through a structured restoration or waterproofing project, owners and facility managers extend the service life of their building envelope. Such upgrades are typically capitalized, meaning costs are spread out over the useful life of the improvement, rather than expensed immediately. This is a key distinction from minor repairs or standard maintenance tasks, which are usually classified as operating expenses.

It is important to start with a professional inspection and evaluation to determine what work qualifies as a capital improvement, as this distinction may affect budgeting and accounting. Proper planning ensures the restoration scope addresses the underlying causes of deterioration, uses quality materials and systems suited for New England’s climate, and is installed to industry standards. Long-term maintenance planning may also be part of a capital improvement strategy, ensuring ongoing performance and protection of the investment.

For tax, accounting, or insurance purposes, consult your organization’s advisors to confirm qualification under the relevant guidelines.