Columbus HVAC Tax Credits & Deductions

If you’re looking to replace or repair your heating & cooling system in the greater Columbus area, you may qualify for heating & cooling tax incentives. At Custom Air, we will help ensure you get the right equipment and  qualify for all the tax savings available..

If you purchase a high-efficiency air conditioner, thermostat, furnace, or heat pump, you could receive a tax credit. Now is a particularly good time to take advantage of replacing your HVAC system.

How do the heating & cooling tax incentives work?

Equipment tax credits for primary residences

Energy Star reports that Non-Business Energy Property Tax Credits have been extended through 12/31/2020. This allows you to gain a credit for up to $500 or 10% of the total cost of an HVAC system. You can also use this air conditioning tax credit on the equipment installed retroactively back to December 31, 2017.

  • Credit: 10% of cost up to $500 or a specific amount from $50-$300.
  • Expires: December 31, 2020
  • Details: Must be an existing home & your principal residence. New construction and rentals do not apply.

Residential Energy Property Costs:

  • Air Source Heat Pumps
  • Central Air Conditioning (CAC)
  • Gas, Propane, or Oil Hot Water Boiler
  • Gas, Propane or Oil Furnaces and Fans
  • Water Heaters (non-solar)
  • Advanced Main Air Circulating Fan
  • Biomass Stoves

Renewable energy tax credits

According to the Energy Star site on Renewable Energy Tax Credits. Both principal residences and second homes qualify. Under the Bipartisan Budget Act of 2018, the renewable energy tax credits for fuel cells, small wind turbines, and geothermal heat pumps now feature a gradual step down in the credit value, the same as those for solar energy systems.

Tax Credit:

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022

Are there commercial HVAC tax incentives?

Industrial HVAC Duct Pipes Hanging from Ceiling

Yes. A separate and particularly strong HVAC commercial tax deduction is available for home builders and commercial buildings. This heating & cooling tax deduction has also been extended through the end of 2020. This is often referred to as the Section 179 Tax deduction, a type of tax deduction that allows small and medium businesses to deduct property or equipment expenses, up to $1 million.

In addition, used equipment qualifies for a deduction of 50% to 100%. Some restrictions will apply to businesses. Talk to us to find out if you qualify for an HVAC tax credit.

“We’ve helped many customers gain significant tax incentives for upgrading or replacing their HVAC system. Let our team help you with these savings.”

Jeff Reed, Custom Air

Which HVAC equipment qualifies for section 179 tax deduction?

Each type of equipment will provide a specific tax deduction. This covers all the following HVAC equipment, heat pumps, central air conditioners, furnaces and boilers.

Whether you’ve already replaced your HVAC system or you’re thinking about an upgrade, now is the time. You will likely qualify on any of the equipment listed above as long as you get the job done before the end of 2020.

Air Conditioner Repair Goodman

Can I calculate my tax savings?

Yes, use the Section 179 calculator to calculate value of your purchase after a deduction. For example, a $75,000 HVAC equipment and installation purchase, assuming a tax bracket of 35 percent, a business could save up to $26,250 after their deduction. In other words, the true cost of their HVAC system replacements would be only $48,750.*

Our experienced team is ready to put our 46 years and our A+ BBB Rating to work for you. When you’re ready to take advantage of the HVAC tax incentives, we’re here to help you.

Call us anytime at (614) 552-4822 or use our contact form for a free estimate or to schedule service.

*Disclaimer: The tax information contained within this overview is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).