Tackling tax code with Will Lorenz

By Emma Peterson. 

Diving into the changes made to Section 179 as outlined in the Internal Revenue Service’s Publication 946. 

In 2024, the Internal Revenue Service (IRS) published a document (946) titled “How To Depreciate Property.” The publication is important to note as it has a direct impact on roofing contractors and applicators with its explanation of changes made to Section 179.  

Section 179 refers to an electable deduction in the existing tax code. The National Roofing Contractors Association (NRCA) explains it as “an electable deduction that allows businesses to deduct the full cost of certain equipment and property in the year the property is placed into service, rather than recovering the cost of the investment over many years under bonus or standard depreciation rules.” To understand what the 2024 publication changes about Section 179, we sat down with Will Lorenz of General Coatings for a quick interview.  

In general, Section 179 is a tax deductible aiming to incentivize people to invest into existing structures. Will explained, “In the case of these tax policies for your building and your roofs, the government’s saying, ‘Look, we want to help you invest so that you have the opportunity to grow and keep your structure in place, while also improving things like energy efficiency.’” In Will’s opinion, updating this incentive is a great way to support a market that has been steeped with uncertainty over the past years.  

So, what exactly was updated? One of the major changes that came from Publication 946 was that the monetary cap for qualifying improvements went from one million to two and a half million dollars. This acts as an incentive to owners to make investments to their properties. Compounding on that, Publication 946 expanded Section 179 to include commercial roofs rather than just residential.  

The effect of these two changes on roofers? A higher market demand for coatings and fluid-applied roofing solutions. Will explained, “It encourages them to look at installing systems that they might not have in the past. In particular, systems like spray polyurethane foam that will allow them to do more square footage and buildings within the monetary cap of this tax deduction.” 

Will’s overall advice for roofers looking to navigate and capitalize on this tax change? Be proactive. He shared, “Overall, roofers and manufacturers need to provide information and educate the builders or the homeowners or the building owners about what the opportunities are. In this case of the tax policy, I think it's very important that that roofers get out there and talk to people and participate in talking with the design community about this because it is a great opportunity for them to do these investments while these tax benefits are available.” 

Read NRCA’s entire FAQ or check out the IRS’ Publication 946 to learn more about Section 179 and the recent changes to it.