As a small business owner, you know the challenges associated with staying afloat financially. While you must have the funds on hand to make payroll, pay for materials or products and cover your monthly utility bills, your business budget may not include cash for big-ticket items, like replacing an old, outdated commercial HVAC system with a brand-new one. But there’s good news on the tax front!
Here’s what business owners need to know about tax deductions for their commercial HVAC upgrade in Delaware.
Upgrading your HVAC system will pay off at tax time
Today, when homeowners and business owners have to upgrade their heating, ventilation and air conditioning system, the law will require upgrades to new eco-friendly systems and refrigerants. Many ancient systems are inefficient and running on refrigerant that’s harmful to the environment. Luckily, the initial investment costs for brand-new HVAC systems are now tied to a new tax law that allows business owners to deduct the cost of their HVAC system.
This new tax law can offset the cost of a whole new HVAC system by up to $5,000 or more for an average-sized system, but there’s even more substantial savings with the purchase and installation of larger commercial HVAC systems. Prior to this law, business owners had to take into account the depreciation of their HVAC over a 39-year period. Most systems don’t even last that long. Now, components can be written off during tax season.
How your business benefits
Aside from providing the opportunity to take advantage of the new tax deduction, a new commercial HVAC system has a lot to offer a business. Let’s take a look at some of the ways your business can benefit from upgrading from an old to a new HVAC:
- Improved energy efficiency: Modern-day commercial HVAC systems are the most energy efficient they’ve ever been. New technology allows these energy-efficient systems to function optimally with little to no stress, which reduces your monthly utility bills and saves your business money in the long run. To ensure the best performance possible, talk to your commercial HVAC contractor about also replacing old thermostats and ductwork at the same time.
- Fewer maintenance needs: Between regular care and an HVAC maintenance plan, you can enjoy your HVAC all year long without interruption. HVAC maintenance plans do not cost a lot and typically include heating and cooling tune-ups, a percentage off of repairs and discounts on replacement parts. It’s a good idea to get a plan when you purchase a new HVAC system, because it may extend the warranty on major equipment.
- Protects employee health: When the air inside a building is not of good quality, it’s referred to as “sick building syndrome.” Basically, the air quality problems start to make employees feel sick for no obvious reason. The issue could be carbon monoxide seeping in, office equipment emitting ozone, even an old HVAC system recirculating dust, debris and other unhealthy particles through the ductwork. A new commercial HVAC system can address these issues and more.
Contact the team at Commercial Equipment Service Inc. today to learn more about the most beneficial commercial HVAC upgrades for your Delaware business and take advantage of the valuable tax benefits!