Save Your Customers Big Bucks on Commercial HVAC Purchases
There is no doubt there has been LOTS of news out of DC lately.     One of the most popular amongst business owners was the recent tax reform legislation.    And while the goal was to simplify the tax code once all the legislators were done it was still a complex and confusing (but overall positive) change.   
 
One of the lesser known parts of this legislation that could have a great positive impact on our industry was Section 179 of the Tax Cuts and Jobs Act of 2017.    It allows for the accelerated depreciation of HVAC purchases for “small” businesses.      Don’t let the “small” business definition panic you however as they define it as any company that spends less than $2M a year on HVAC purchases (I don’t know many that do).     The old law required depreciation over the crazy and unrealistic period of 39 years – find me any system that will even last that long!     The new law allows for accelerated depreciation in 1 year – a huge change and a very positive savings providing the company pays taxes.     See the below link for a nice 2-page flyer explaining the new rules and on the back some simple savings scenarios.    YES – the full price on the installation including the equipment, ductwork, labor, commissioning, and testing are all included.  
While this tax savings has been around for some time know I’m still amazed at the lack of awareness and promotion we’ve achieved.   It reminds me of 2010 when the $1500 tax savings on energy efficiency improvements existed, the window industry squarely out-marketed us.    I don’t know if it’s we just aren’t good marketers or communicators or we don’t like to talk about taxes due to their complexity, but this is certainly something we all should be talking about.   Even HVAC companies that do mostly residential are commonly doing light commercial jobs that qualify or at the very least have customers that own businesses.     
 
Please let me know if you have any questions and we’ll help address them, in the meantime use the above flyer to help sell more and save your customers their valuable tax dollars.  

Thanks for all you do and as always “Expect More From Us”!
 
Thanks,
Chris Baker
President & CEO
Value Added Distributors