It’s easy to get cynical sometimes about what’s happening in Washington, but Masters Heating & Cooling has some really great news to share with you about a couple of things Congress did. First, lawmakers reinstated the 30% federal tax credit for the installation of geothermal heat pumps. Secondly, the recently passed tax bill includes a huge break for businesses buying new or used HVAC equipment.
Let’s talk first about the geothermal tax credit. It was allowed to expire at the end of 2016. It never seemed fair to those of us who believe in geothermal heating and cooling, because the solar energy tax credit was continued. Earlier this year the issue was addressed and the tax credit was not only reinstated, but it was made retroactive to January 1, 2017 and extended until January 1, 2022. There’s even better news for businesses. Originally, work had to be completed by that date in order to qualify, but the new version extends the tax credit to include any projects that are STARTED by January 1, 2022.
If you are considering a new heating and cooling system for your Fort Wayne, IN home, this will help make the upfront cost of geothermal easier to handle. If you’re not familiar with how the system works, it uses the nearly constant underground temperature to heat your home in the winter and cool it during the summer. A geothermal heat pump works on the same principle as an air source heat pump, but is incredibly efficient because of the constant temperature underground, rather than the wildly fluctuating air temperature.
Using geothermal for heating, cooling and hot water can cut your energy costs by as much as 70%. According to the energy.gov website, it will take about 5-10 years for the energy savings to pay for the extra upfront expense, after that it’s like getting money in your pocket every month. Additionally, Masters features WaterFurnace ground source heat pumps made by American workers right here in Fort Wayne. In fact, we have installed more WaterFurnace heat pumps than any contractor in the region.
Now onto the big news for business property owners. It changes the tax deduction for new or used HVAC equipment purchased for your business. In the past, this equipment was considered a capital expense, meaning it has to depreciate over 39 years. That’s no longer the case. The new Section 179 deduction now means heating and cooling equipment will be treated as a special deduction. It means businesses can now deduct up to $1,000,000 immediately on purchases up to $2,500,000. Imagine that kind of deduction when you are filling out your business tax return?
Whatever your HVAC needs are in Fort Wayne, Decatur, Mishawaka, or points in between, just call Masters Heating & Cooling. Remember, we now have six locations to serve you, meaning Masters gets there faster!