HVAC EQUIPMENT QUALIFIES FOR SECTION 179 DEDUCTION
Educating our customers as to the benefits of general ventilation for the health of their employees and productivity of their operations is our mission. If we can also help them understand the financial benefits of investing in ventilation equipment, then that is a big win for both of us! That is why we want our customers to know about the Section 179 deduction available for investment in HVAC equipment.*
Big Changes to Section 179
The Section 179 deduction has been around for some time. However, the Tax Cuts and Jobs Act of 2017 made big changes to Section 179. The biggest and most important change for our industry is that HVAC equipment used as an improvement to real property will qualify for treatment as Section 179 property. That means any company that adds or replaces ventilation equipment, such as fans and louvers, to their existing building can treat those assets as Section 179 property and take a 100% deduction in the year they are placed into service.
The two other big changes to Section 179 are that the deduction limit was raised to $1,000,000 and the phase out threshold was raised to $2,500,000. Now more business will qualify to take advantage of a larger Section 179 deduction.
If you were looking for reasons to invest in HVAC equipment, the Section 179 deduction now gives you a 1,000,000 of them. Eldridge can make it simple by providing a total turnkey solution to have that new HVAC equipment specified, ordered, installed and operating to take advantage of the Section 179 deduction in 2019.