What Will Happen To Commercial HVAC Upgrade Incentives For The 2019 Year?

As the year draws to a close, commercial HVAC contractors in Philadelphia have been getting a lot of questions from customers who didn’t manage to squeeze-in an HVAC upgrade in 2018. What tax credits and other incentives will be available to your business in 2019? The seasoned pros at H&H break it down for you…

Federal Incentives for Businesses

• Federal Tax Deductions on Upgrades (& New Installations)

  If your aging commercial heating and air system is still running on R22 refrigerant, you’re playing with fire. After January 2020, R22 systems can no longer be repaired, they must be replaced, potentially leading to a backlog of customers waiting on installations. Luckily there is a great tax incentive for your business: The recently passed Tax Cuts and Jobs Act included a provision to allow HVAC products to be immediately expensed. Effective January 2018, under Section 26 U.S. Code § 179 Small Business Expensing, all components of a “heating, ventilation, and air-conditioning” system can be immediately expensed in the first year instead of being depreciated over 39 years. Instead of a measly $350 depreciation for the year (based on old rules), deducting the $14,000 system and installation costs from your 2019 business income could earn you a tax break of $5,000+.

• Federal Tax Credits for Geothermal

  If you're concerned your business is a commercial energy hog, now’s a great time to dig into geothermal. Undergoing numerous amendments including one this February, the Federal Business Energy Investment Tax Credit (ITC) provides a tax credit equal to 10% of expenditures with no maximum for geothermal property, including components used to produce geothermal energy to those used in the electrical transmission stage, valid through December 2021. (Credit on geothermal heat pumps has no stated expiration.)

• Federal Tax Credits for Combined Heat & Power (CHP)

  As the above, the Federal Business Energy Investment Tax Credit (ITC) provides a tax credit equal to 10% of expenditures with no maximum for CHP systems up to 50MW capacity exceeding 60% efficiency, subject to some limitations. This does not apply to CHP systems utilizing biomass for 90%+ of system energy, though the credit may be reduced for less efficient systems.  

• State-Level Rebates

  Concerned about new efficiency requirements for rooftop units? Due to environmental and energy concerns, most states offer financial incentives for businesses interested in boosting efficiency, such as New Jersey’s COOL Advantage and WARM Advantage Programs, which provide rebates for high-efficiency HVAC systems.

• State-Level Corporate Tax Breaks

  Many states also exempt purchases of energy efficient products from sales or use taxes, or offer special sales tax free holidays for Energy Star-rated products.

• Utilities Rebates

  Local utility providers also commonly provide rebates and other incentives for energy efficient upgrades and appliance purchases.

What’s Available in Your Area?

Learn more from the U.S. Department of Energy’s DSIRE website and Energy Star. 

Interested in learning more about available system upgrade options for your business and incentives available in your area? Schedule a complimentary consultation from a qualified HVAC contractor from H&H Commercial Services today.

This post originally appeared on: https://hhcommercialonline.com/will-happen-commercial-hvac-upgrade-incentives-2019-year/

Is Your Business A Commercial Energy Hog?

Commercial businesses consume energy in much the same fashion as homes, guzzling electricity to power heating and cooling, lighting, electronics and appliances. Already consuming 41% of the power produced in the U.S. according to 2014 figures from the National Academies of Science, Engineering, and Medicine 2014 statistics, energy consumption in these sectors is expected to rise 13% in the U.S. the next 20-years, while globally it will inflate a staggering 44%, taxing the earth’s natural resources. Is your business doing its part to staunch the flow, or carelessly contributing the world’s ‘carbon footprint’ problem?

Is Your Business a Commercial Energy Hog?

Commercial HVAC contractors in Philadelphia get a lot of questions from customers concerning the ‘normalcy’ of their energy expenditures and ways to reduce energy use. Though the usage of the commercial sector varies slightly by industry, whether your business is a medical, office, hotel, retail, sports, educational, religious, or governmental establishment, the biggest energy user of the commercial sector by far is heating and cooling, adding up to over half of your monthly and annual energy expenditures> Nearly all of this energy is provided by electricity (53%) and natural gas (39%), which powers 92% of the energy needs of U.S. businesses.

 

Top Energy Consumers in Commercial Buildings

The U.S. Energy Information Administration 2012 Commercial Buildings Energy Consumption reveals what’s consuming the most commercial energy, including:

• Space heating 25%
• “Other” 13%
• Ventilation 10%
• Refrigeration 10%
• Lighting 10%
• Commercial cooling 9%
• Computers/office equipment 8%
• Water heating 7%
• Cooking 7%

 

Industries Consuming the Most Energy

As taken from the U.S. Department of Energy Efficiency and Renewable Energy Report:

• Offices: 19%
• Retail/Malls: 18%
• Education: 8%
• Healthcare: 8%
• Storage/Warehouses: 7%
• Hotels/Lodging: 7%
• Food Service: 6%
• Food Sales: 5%
• Public Assembly: 5%
• Service: 4%
• Church/Worship: 2%
• Public Order/Safety: 2%

 

How Concerned Should You Be About Your Business’ Kilowatt Consumption?

Though the global need for energy is rising, America’s energy expenditures could be far worse. Federal and state appliance efficiency standards, in-effect since the 80s, have realized dramatic improvements, particularly with former energy gluttons including HVAC, water heaters, and refrigerators, as have improvements in the lighting arena including more affordable LED lighting options. Minimum efficiency standards have also reduced the use of energy consumed by commercial equipment considerably.
  

Tips for Reducing Energy Costs & Leaving a Smaller Carbon Footprint

Been a while since you scheduled necessary commercial heating and air conditioning repair and maintenance? Your heating and cooling needs may be costing your business and the environment even more than these statistics suggest. Learn more about ways to reduce the consumption of your business’ largest energy consumer with these HVAC tips for reducing energy costs. In addition, when upgrading appliances or your facilities, be on the lookout for these logos:

• Energy Star

  Energy Star labels not only energy efficient products – but energy efficient buildings. Does yours qualify?

• LEED

  The most widely-used green building rating system worldwide.

Looking for new ways to lower your carbon footprint and reduce your annual energy expenditures? Schedule commercial HVAC repair and service and learn more about commercial energy audits from the industry experts at H&H Commercial Services today.  

This post originally appeared on: https://hhcommercialonline.com/business-commercial-energy-hog/