Thanks to changes in Section 179 of the tax code, known as the Tax Cuts and Jobs Act, purchasing an HVAC system (new or used) can mean a sizable tax deduction to business property owners.
The way it was
Prior to the changes enacted by Congress last December, HVAC equipment was excluded from the Section 179 deduction. It was considered a capital improvement to a building and was subject to depreciation over 39 years. For example, if you needed 10 rooftop units and HVAC renovations that cost $150,000, you would have been able to claim first-year depreciation of $3,846 (assuming a 35 percent tax bracket).
The way it is now
Now, however, both new and used HVAC equipment purchases of up to $2.5 million are eligible for a deduction with a cap of $1 million. That means you could deduct the full purchase price and reduce your taxes by $52,500 – that’s 35 percent! The entire deduction is eliminated once you make $3.5 million in purchases, so it’s a deduction that is geared toward small- and medium-sized businesses.
How ACE Home Services can help you save money
The new tax code change is a big incentive for business owners to invest in new systems (or update their old ones) now and write off as much as 100 percent of the cost the first year. Because laws change – or are amended – frequently, it’s safer to make the purchases sooner rather than later, as no one knows what 2019 will bring.
ACE Home Services will install, upgrade or repair your commercial HVAC system, providing you with exceptional service and competitive pricing. You’ll then be able to realize the savings on your 2018 tax return. In addition, because ACE only uses high-efficiency products, they’ll last, lowering your energy and repair costs in the process.
When you need to repair your current HVAC system
You won’t qualify for the new tax deduction unless you buy a new or used system, but properly maintaining your current system can extend its life. ACE Home Services offers commercial HVAC repair services – even same day repairs. Qualified, experienced ACE technicians can tune-up and repair commercial air conditioning, furnaces, and heat pumps, and even handle plumbing (sewer/drain cleaning and repair, leak detection and pipe repair, gas lines, bathroom maintenance, and remodeling). In addition, ACE boasts an A+ rating from the Better Business Bureau, so you know you’re in good hands.
If you’re considering replacing or upgrading your commercial HVAC system, contact ACE now and maximize your tax benefits this year. Need repairs or residential services? The experts at ACE Home Services can take care of it.