Important News! Massive Tax Deductions are Available for HVAC Equipment!

Important News! Massive Tax Deductions are Available for HVAC Equipment!

Brandt is qualified to administer changes from the Tax Cuts and Jobs Act that can save business property owners up to $1 million in expenses in 2018!

Under Section 179 of the tax code, “deductions can be applied to both new and used HVAC equipment purchases of up to $2.5 million dollars, with a $1 million deduction limit.”

Section 179 Changes in Laymen’s Terms

Section 179 is designed to incentivize businesses to improve energy-efficiency by allowing them to expense the purchase of assets that aren’t real property. Essentially, the tax incentive is allowing business property owners to expense their HVAC equipment as a deduction to greatly reduce the initial investment cost. Previously, HVAC equipment was considered a capital improvement to the building which was excluded from the Section 179 deduction. It only applied to commercial assets such as business vehicles or non-fixture equipment like computers, warehouse machinery, and various office equipment.

Before this year, if you wanted to renovate your HVAC equipment because it was old or not energy-efficient, you could only expense a portion of your costs over the lifespan of the building (traditionally 39 years). So, if you spent $1 million on HVAC equipment, you could only expense around $40,000 of it per year.  Now, Section 179 of the Tax Code allows you to expense up to $1 million all in one year!

Take Advantage While It Lasts!

Now is the time to upgrade or renovate your HVAC equipment before the tax registration expires! With any tax incentive, the expiration date is uncertain, changes are frequent, and there are no guarantees that the tax code will be as generous in subsequent years.

With the help of Brandt, you can expense the HVAC equipment you buy rather than depreciating it over time! The tax code is applicable to any HVAC equipment that you purchase from Brandt, so if you’re looking for new rooftop units, an upgraded boiler, or a brand new chiller, contact our professionals today! Our experienced team is here to explain the tax code changes and estimate exactly how much money you can save.