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Commercial HVAC Tax Changes in Section 179 for Business Owners

HVAC tax changes

Save More Money on Your Taxes This Year

Unless you’re a tax professional, you might not be aware of the impact of commercial HVAC tax changes in the 2017 tax act. In it, the law revised Section 179. This section pertains to the amount a small business may deduct depreciation of equipment, for example.
New equipment of any sort is typically a major investment for commercial and industrial properties. With the commercial HVAC tax changes, however, you can purchase and install it now while freeing up cash. This helps you move your business forward sooner!
Let’s review the details of who qualifies, what qualifies and why these commercial HVAC tax changes are great news!

Commercial HVAC Tax Changes: Section 179 Basics

Previously, when a small business owner purchased major equipment, he or she was allowed to deduct the cost over 39 years. This depreciation provided a small deduction each year.
Now, as of January 1, 2018, commercial HVAC equipment purchases are no longer categorized as capital improvements. Because of the Tax Cuts and Jobs Act of 2017, small business expenses for the purchase and installation of a commercial heating and cooling system may be totally deducted in the first year.
These commercial HVAC tax changes significantly reduce your tax burden in that first year. As a result, you should owe fewer taxes. This should allow you to reallocate cash to invest in other areas of your business. Have you been itching to expand? Now might be the time.

Who Qualifies

According to, “all businesses that purchase, finance, and/or lease new or used business equipment during tax year 2019 should qualify for the Section 179 Deduction.”

Limits Within the Commercial HVAC Tax Changes

No business may deduct more than $1,000,000 for 2019. The limit on the total amount purchased is $2,500,000 in 2019. The deduction phases out dollar-for-dollar after the $2,500,000 threshold.
The entire deduction goes away after businesses reach $3,500,000 in purchases. This retains the change within the scope of true small and medium-sized businesses.
All equipment purchased or financed must be placed into service between January 1 and December 31, 2019.

Next Steps for Businesses

  1. Call Energy Savers for a complimentary consultation. Our commercial division can assist you with heating and cooling, ventilation, thermostats and controls, packaged HVAC products, air filtration, rooftop units and more. Share with our team what you need, what would make a difference for you and any expansion plans. Our consultants are happy to assist with an estimate of what it would take to address your wants and needs.
  2. Confer with your tax professional. He or she can help you evaluate what specifically qualifies and how the commercial HVAC tax changes fit into your timeline and cash flow. In addition, he or she can review what may qualify for bonus depreciation. There are certain conditions.
  3. Schedule a time with Energy Savers commercial team for installation. Let us help you maximize your benefits with these commercial HVAC tax changes so you can attack your 2019 goals.

Take Advantage of Commercial HVAC Tax Changes with Energy Savers in Georgia and Alabama

For more than four decades, Energy Savers has helped home and business owners achieve ultimate heating efficiency and comfort for residential and commercial properties.
We also service and repair all brands of HVAC equipment and provide air quality solutions for commercial, industrial and residential sites.
If you would like to schedule a tune-up or repair for your heating and air system, please call us. We are happy to help you with free estimates and when you are ready to upgrade to a new energy-efficient system, we also offer installation and finance options.
Modernizing your HVAC system reduces your expenses and improves reliability, so it’s worth your time!
Energy Savers provides quality customer service and energy-efficient products in and around Columbus, Georgia and Opelika, Alabama. For better comfort and healthy air, call us for heating and cooling help today.

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