Section 179 Small Business Expensing

Have you heard about the recently passed Tax Cuts and Jobs Act specifically related to Section 179 Small Business Expensing? If you’re a business owner, we have some news for you! If your HVAC rooftop unit is 8-10 years old, this is the perfect opportunity to take advantage of this new provision.

“Under Section 179 Small Business Expensing, all components of a heating, ventilation, and air-conditioning system can be expensed in the first year.”

What does this mean for you?

You will now be able to immediately expense your HVAC purchases instead of depreciating the purchase over 39 years. This is an incentive created by the US government to encourage businesses to buy equipment and invest in themselves.

Let’s take a look at an example of how this works:

A restaurant owner installs a new heating and air-conditioning rooftop unit. The equipment
and labor for installation cost $14,000. Under old depreciation rules, the restaurateur could
only claim approximately $350 in depreciation expense annually over 39 years. Under the
new law, she can deduct the full cost of the HVAC equipment (including installation costs) of
$14,000 from her business income the year of the purchase and installation. At the top
marginal tax rate that would be applied to this purchase, this will save her $5,180 in taxes.

Let us answer your questions

Our experts in our Commercial Department will develop a cost-effective, economical system that will suit all your buildings needs. Take advantage of this new provision and replace your dated HVAC rooftop unit today! Colony Plumbing, Heating and Air Conditioning will handle all of your commercial needs as well as maintenance.




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