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New Tax Cuts and Jobs Act Offers Incentive for Commercial HVAC System Upgrades


The recent change in the federal tax law included a provision to allow HVAC products to be immediately expensed. For the owner of a commercial building, this means that under Section 179, all components of a “heating, ventilation, and air-conditioning” system can now be deducted in full as a business expense during the first year, instead of being slowly depreciated over 39 years.

So what would the cost savings be under the Tax Cuts and Jobs Act? According to HARDI, if a business owner installs a new heating and air-conditioning rooftop unit for a total cost of $14,000 (including the equipment and labor for installation), under old depreciation rules, the owner could only claim approximately $350 in depreciation expense annually over a 39-year period. Under the new law, the owner can deduct the entire $14,000 cost of the HVAC replacement project from their business income in the year of the purchase and installation. At the top marginal tax rate that would be applied to this purchase, this can save the business owner $5,180 in taxes.

As an HVAC contractor, you should be focusing on contacting not only all your clients that have old and outdated systems, but also all past commercial proposals that didn’t sell. Start before your competitors figure out that every profitable business has unexpected money to spend. Provide a proposal, detailing the new tax law, how you’ll improve comfort and cut costs.

FIELDBOSS is an end-to-end HVAC contractor management software built to drive the maximum productivity from field technicians while providing real-time information to the back office. FIELDBOSS is built within Dynamics 365 making it easy to pull up all your current customers who are in need of upgrades as well as a list of all leads. With one click you can easily create an email campaign to let them know about the new tax laws and how you can save them money.

  1. Target Specific Contacts

FIELDBOSS makes it easy to send very targeted mass emails, improving the relevance and performance of your campaigns.

  1. Send Personalized Messages

FIELDBOSS can leverage all of the customer data you’ve collected so you can personalize your message to your customer. It’s a great way to improve your email marketing results.

  1. Improve Efficiency

Sending mass marketing emails enables you to deliver your campaign message quickly and easily, saving time and growing your revenue.

Contact FIELDBOSS today. The faster you can deliver your proposal the more business you’ll generate.

#FieldServiceSoftware #FIELDBOSSHVAC #MicrosoftDynamics365 #TaxCutsandJobsAct

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