Improving ventilation, heating, and cooling is a top priority for building owners. Relevant stakeholders seek to balance HVAC upgrade desires with the economic concerns of today including higher inflation, supply chain squeezes, and increased costs of equipment.
Luckily, several tax benefits are available for homeowners (and contractors) looking to modernize their homes to reduce costs and promote improved living conditions. Three such benefits contained within the Internal Revenue Code are contained within Section 25D, which provides incentives for homeowners to install home systems that draw upon renewable energy, Section 45L, which provides incentives for contractors to construct homes that meet specific energy efficiency standards, and Section 179D, which enables tax deductions for owners who make building infrastructure improvements that demonstrate a 50 percent reduction in energy usage. HVAC improvements are a primary focus of this deduction.