Why Now Is the Best Time For Cladding Construction Companies to Invest

By Matthew Morris, PanelClad

As the end of 2024 draws near, businesses across industries are thinking about tax planning strategies that maximize their financial benefits. For construction companies, now is the perfect time to take advantage of one powerful incentive: Section 179 of the U.S. tax code. This tax deduction allows businesses to deduct the full purchase price of qualifying equipment, offering immediate savings and encouraging investment in essential assets.

Why the Panelizer Is a Perfect Section 179 Deduction

For companies specializing in cladding and building envelope systems, investing in equipment that increases efficiency and safety is invaluable. The Panelizer offers a solution designed specifically for these needs, enhancing on-site safety, speeding up installation, and drastically reducing material handling—an issue that typically adds labor costs and risk to every project. With a raised work deck to stage modular wall sections, and a specialized lifting pad capable of supporting 6 sheets at a time up to 50 feet long, The Panelizer drives unmatched value into nearly every project.

Check out a video of the Panelizer in action: https://youtu.be/QhyvgnlX-Ag

How the Panelizer Adds Value:

1. Cost Efficiency: The full deduction allowed by Section 179 reduces the effective cost of the Panelizer, meaning companies can improve their operations without a significant financial burden.
2. Accelerate Your Project Timeline: The Panelizer system reduces on-site time by up to 25%, saving you both hours and overhead.
3. Reduce On-Site Risks: Minimize potential delays and maximize safety with a streamlined workflow.
4. Unlock Real Savings: Lower daily costs, directly boosting your bottom line—think fewer rental fees, lower labor expenses, and better margins.

Key Highlights of Section 179 for 2024:

● Maximum deduction limit: $1,160,000.
● Equipment must be purchased and placed in service by December 31, 2024, to qualify.
● The deduction applies to both new and used equipment.

In a market where competitiveness and efficiency are paramount, Section 179 provides companies with a way to modernize their equipment without a significant net cost.

Financial Example: How Much Contractors Can Save with Section 179

To illustrate the savings potential with Section 179, let’s look at a sample calculation with the Panelizer’s original price:

1. Original Cost of a Panelizer unit: $75,000
2. Price After PanelClad’s 2024 Discount: $55,000
3. Tax savings (based on a 35% tax bracket): $55,000 x 0.35 = $19,250
4. Net cost of the Panelizer after-tax savings: $55,000 - $19,250 = $35,750

PanelClad’s Limited Time Offer

PanelClad is offering a limited-time discount on the remaining stock of panelizer units sold before the end of the year. With the initial discount from 75,000 to 55,000, companies will enjoy the added tax break lowering the total out-of-pocket price considerably. Contact sales@panelclad.us to learn more about purchasing a Panelizer and ensuring it’s ready to use before the end of the year.

What Is Section 179?

Section 179 of the IRS tax code was designed to encourage businesses to invest in their growth
by allowing them to deduct the cost of qualifying equipment, rather than depreciating it over
several years. This tax rule has particular advantages for capital-heavy industries, such as
construction, where efficient machinery can lead to improved productivity, reduced costs, and a
competitive edge.

About PanelClad

PanelClad is the developer and marketer of The Panelizer™ panelized erection system and MTX™ material handling system, time-saving products developed to simplify and substantially speed the installation of metal roof and wall claddings on metal building systems. The Panelizer™ suite of products includes the PurlinGuide and GirtJack alignment tools, PanelTrack roof panel layout and feeder apparatus, and PanelLift hoisting assembly which enables whole sections of wall or roof panels to be aligned on the ground and then lifted into place as a unitized assembly. The MTX™ system is an easy-to-assemble dolly and track system that facilitates the movement of metal roof panel bundles to the working edge, reducing labor and speeding panel installation.

PanelClad Inc. is also now offering services as a vertically integrated manufacturer of high-performance building structures and envelopes. The company designs, fabricates and erects its structures to its clients' exacting specifications. From the design phase through the final inspection, PanelClad guarantees a smooth process with a high industry standard for workmanship and professionalism. To learn more about the company and its products, visit www.panelclad.us.