This is the year to consider upgrades to your HVAC! Under Section 168 of the tax code, the cost of all equipment and components of the “heating, ventilating, and air conditioning system” can be fully deducted for tax purposes in the first year it is placed in service versus over a 39 year period. For commercial buildings, the cost of HVAC equipment placed into service in 2020 may be fully deducted as a business expense.