HVAC Upgrades
There are multiple potential tax savings alternatives for HVAC purchases:
New Buildings - Utilizing EPAct 179D
New Buildings can utilize EPAct HVAC tax deductions. There are 12 HVAC technologies that tend to qualify:
- Geothermal (Ground Source Heat Pumps)
- Thermal Storage
- High Efficiency PTAC Units in rental apartments
- Centralized HVAC in rental apartment buildings
- Energy Recovery Ventilation
- Demand Control Ventilation
- Chillers in buildings < 150,00 sq ft
- Blow Through Heaters in no AC Industrial Spaces
- VAV (Variable Air Volume devices) in buildings < 75,000 sq ft
- Chilled Beam
- Magnetic Bearing Chillers
- Gas-Fired Chillers combined with Electric Chillers to peak shave
Existing Buildings
Existing buildings can qualify for EPAct by implementing the 12 strategies described above or for replacement tax opportunities described below. Note: qualification for HVAC EPAct tax services is highly dependent on the underlying circumstances of the space.
Q-PURE:
- Qualified Package Unit
Replacement Expensing (Q-PURE) utilizes guidance from proposed IRS REG-168745-03
as well as precedence set by numerous tax court rulings
to allow for the expensing of replacement HVAC package units that meet
certain qualifying characteristics.
- Using typical present value analysis techniques it is equivalent to a 20% discount on the cost of replacing the unit (Equipment and Labor).
Q-CURE:
- Qualified Chiller Unit Replacement Expensing
Q-RRED:
- Qualified Rooftop Replacement Expense Deduction
Data specifications for these products and more detailed descriptions are available on request.