Carey's Heating & Air Conditioning, Inc.

As you plan your tax strategy for 2019, consider this: the new Tax Cuts and Jobs Act allows new HVAC equipment and systems to be included in Section 179 as an immediate expense.  This means new rooftop units or other equipment that you install can be fully written off in the tax year when it is paid for instead of being depreciated over 39 years as a capital improvement. 

This change is a blessing for business owners, landlords and developers upgrading existing office and retail space or building new facilities. Cash is king when you’re growing, and Section 179 frees up precious cash just when you need it the most.  For example, an office center investing $300,000 in an upgraded HVAC system can now deduct just over $100,000 in year one, assuming a 35% tax bracket, instead of deducting only a few thousand dollars in the first year.

If you’re planning to build a new corporate headquarters, shopping mall or restaurant … or retrofit an existing one, this change provides some added flexibility.  You now have a significant chunk of money to put to use in whatever way is most important … decorating the interior, stocking inventory, hiring new staff, marketing your location, etc.

Just a friendly reminder, be sure to consult a tax expert for specific guidance unique to your situation.