Section 179: A Commercial HVAC Contractor’s Diamond in the Rough
Tax break allows commercial HVACR contractors to expense equipment immediately
While the reduction of the corporate tax rate from 35 percent to 21 percent and the simplification of individual tax brackets garnered most of the headlines following the passage of the 2017 Tax Cuts and Jobs Act, there’s a hidden jewel tucked within the tax reform package that commercial HVACR contractors need to be aware of: the expansion of Section 179.
The expansion of Section 179 grants commercial businesses the ability to immediately deduct up to $2.5 million in qualifying nonresidential HVACR equipment purchases with a $1 million cap, effective Jan. 1.