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New Tax Credits Benefit VRF and CHP

2/15/18

YANMAR Economic SavingsTwo new tax credits that impact YANMAR’s Variable Refrigerant Flow (VRF) and Combined Heat and Power (CHP ) systems have recently been put into effect.

  1. The Tax Cuts and Jobs Act includes a provision which allows certain HVAC products to be immediately expensed. Section 179 of Small Business Expensing states that all components of a “heating, ventilation and air conditioning system” can be expensed in the first year instead of depreciating over a 39 year period. Follow the link for a Visual Infographic example provided by the Air Conditioning Contractors of America.
  2. The CHP Tax Credit, which initially expired on 12/31/16, has been re-instated as part of the Bipartisan Budget Act of 2018. This 10% Investment Tax Credit (ITC) applies to CHP projects that started construction in 2017 or will start anytime before 1/1/2022.

These tax credits will improve the Return on Investment (ROI) for projects using YANMAR’s VRF or CHP systems powered by natural gas. Life cycle cost savings is just one of the many benefits provided by these systems. Other key benefits include energy efficiency, emissions reductions, low operation noise, high reliability, easy installation and more.

To learn more, contact us or start your Return on Investment Analysis today.