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The Reliable

Business Owners Can Now Deduct HVAC System Purchases in Full

Buying commercial HVAC equipment is expensive and wherever you can save money is ideal.  Here is a revision to an old tax code that cuts you an unbelievable break with significant returns. 

Title 26 U.S. Code Section 179 states that “A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service… Qualified Real Property applicable includes heating, ventilation, and air-conditioning property.”

  • What does it really mean? Let’s say you bought a new heating and cooling rooftop unit from Reliable Heating & Air for your Cat Café.  Yes, we are talking to you Java Cats! And the equipment and labor costs say $14,000.  Under old depreciation rules you could claim $350 expense annually over 39 years.  Under the new law you deduct the FULL cost of the HVAC equipment.  At the top marginal tax rate that would be applied to this purchase that would save you $5,180 in taxes.  YES!
  • What else does Section 179 mean? The old deduction maximum was 500,000 and it is increased to $1,000,000 and the phase out threshold increases from $2,000,000 to $2.5 Million dollars.  Business owners now is the time to make investments in improving your property, plant and equipment.  Maximize your profits by taking full advantage of this incredible HVAC tax break. 

Ready to talk about air conditioning replacement with a Commercial Comfort Consultant Today?  Call or Text Reliable Heating & Air at (770) 594-9969