Recently, the Tax Cuts and Jobs Act was passed, making a major tax break available to building owners and tenants who want to invest in commercial HVAC equipment. Here are some insights into the details of this cost-saving opportunity, from NJ commercial HVAC contractors.

Section 179 of the Tax Cuts and Jobs Act and What It Means for Building Owners 

This section states that “A taxpayer may elect to treat the cost of any Section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service. Qualified Real Property applicable includes heating, ventilation, and air-conditioning property.”

This means that purchases of new and used HVAC equipment is no longer considered capital improvement to properties. Rather than being subjected to little or no tax deductions, equipment purchases can now be deducted as a business expense. For example, the purchase of $2.5 million in commercial HVAC equipment allows for an immediate deduction of up to $1 million – a significant tax break.  Be sure to discuss with your tax advisor if you utilize Section 179.

To take advantage of this new cost-savings initiative, it’s important for property owners and tenants to act quickly – there’s no guarantee that this same tax cut will be available in the coming years. By partnering up with an experienced commercial HVAC contractor, you can get your existing system repaired, upgraded or replaced with more high-tech, energy-efficient systems at a fraction of the normal cost. This tax break is critical for long and short-term savings, allowing you to lower building running costs for many years to come through a far more affordable investment.

Expert Design, Repair and Maintenance of Commercial Ventilation Systems and Ductwork 

Founded in 1988, Tri-Tech Energy has grown into a leading commercial HVAC company in NJ with a loyal client base. Our commercial HVAC contractors serve the entire NJ area, and work with new building projects as well as retrofits, and are one of the companies in the area able to custom manufacture commercial ductwork and commercial ventilation systems to your building’s exact needs. In addition to our HVAC system design and installation services, we also offer long-term maintenance and repair services 24 hours a day, 7 days a week to our customers to keep their systems running smoothly.

For more information on our company or services, including commercial HVAC ductwork insulation, please contact us today or visit our website at