Residential and Commercial HVAC Houston

Are Air Conditioning Units Eligible For Bonus Depreciation?

Are Air Conditioning Units Eligible For Bonus Depreciation

What Is Bonus Depreciation?

In some cases, the IRS extends tax incentives to businesses in order to help promote positive revenue growth for the company. Bonus depreciation, also known as the additional first year depreciation deduction, is a specific tax incentive that gives companies the ability to immediately deduct a high percentage of the overall purchase price of certain eligible products that they deem assets. This includes some machinery and in your space, being deducted instead of writing them off over the “useful life” of the asset.


How Bonus Depreciation Works

Whenever a business makes a major purchase of equipment, the cost of the equipment is most often spread out for the useful life of this equipment, when filing your business taxes. This process is known as depreciation, to help business owners have an accurate estimate of profits and losses. Bone depreciation comes at the beginning of the equipment’s lifespan, offering the largest deduction up front.


Does My Commercial HVAC System Qualify For Bonus Depreciation?

Taxes can be complicated, especially for businesses trying to determine what deductions and write-offs they qualify for. A common question many business owners have is, “Does my commercial HVAC system qualify for bonus depreciation?” The simple answer to this question is no, HVAC systems do not qualify for bonus depreciation. However, air conditioning and heating systems do qualify as section 179 equipment. If you have any questions or concerns about if you are filing your commercial taxes properly, working with a tax agent may be your best option to ensure you are getting the most return.


What Is A Section 179 Deduction?

According to the IRS’s website: “The Section 179 deduction applies to tangible personal property such as machinery and equipment purchased for use in a trade or business, and if the taxpayer elects, qualified real property. The TCJA amended the definition of qualified real property to mean qualified improvement property and some improvements to nonresidential real property, such as roofs; heating, ventilation and air-conditioning property; fire protection and alarm systems; and security systems. Revenue Procedure 2019-08 explains how taxpayers can elect to treat qualified real property as Section 179 property.”


At Autumn Mechanical in Champion Forest, our team is dedicated to providing the highest quality air conditioning repair and maintenance for home and business owners. Our highly trained and experienced technicians are proficient in working with all brands of cooling and heating systems to deliver solutions for your space quickly.


Champion Forest Houston Air Conditioning Company

Whenever you are looking for high quality air conditioning and heating services at an affordable price, we can help! We service and replace both commercial and residential HVAC systems in order to bring you the ultimate climate control. Autumn Mechanical proudly serves the Greater Houston area, including Briarpark, Midtown, Sugar Land, Cypress, Pearland, The West University Place, The Heights, Spring, Willowbrook, Houston, Springbranch and The Woodlands. Don’t hesitate, give us a call today to find out what we can do for your home or business!


Autumn Mechanical
18812 Tomato St.
Spring, TX 77379
(713) 864-8368