If you own or manage a commercial building, there’s a good chance your HVAC system is old enough to vote, and maybe even rent a car. Those aging units might still be running, but they’re working harder than they need to, costing you more in energy, maintenance, and missed savings every month.
But there’s good news. The One Big Beautiful Bill Act, signed into law on July 4, 2025, is packed with tax-friendly incentives designed to benefit working Americans and business owners. While the headlines focused on car loan interest and senior savings, the real gem for commercial properties is this: a serious boost to Section 179 tax deductions for business equipment, including HVAC systems.
At Environment Masters, we’ve been helping Mississippi businesses navigate the HVAC world for over 60 years. And this latest bill is one of the biggest opportunities we’ve seen to put real money back into your business.
Let’s walk through what’s changed, how much you could save, and why now is the best time to act.
What’s in the One Big Beautiful Bill for Commercial HVAC?
Signed into law by Congress as part of a sweeping tax and spending package, the One Big Beautiful Bill expands Section 179, a tax provision that allows businesses to deduct the full cost of qualifying equipment, like HVAC systems, in the year it’s installed.
In plain terms, if you upgrade your system in 2025, the government is offering to let you write off
the entire expense on this year’s taxes.
No waiting. No drawn-out depreciation. Just money back, fast.
Section 179 Deduction, Explained (and Why It Just Got Better)
Section 179 has always been a powerful tool for businesses, but the 2025 updates make it even more attractive.
Here’s what you need to know:
Deduct the Full Cost
Under Section 179, you can deduct 100% of the purchase price for qualifying new or used HVAC equipment purchased or financed during the tax year.
Deduction Limits
For 2025, the maximum deduction is $2.89 million. If your total equipment purchases go beyond that, the deduction begins to decrease, but that’s a big ceiling for most small and midsize businesses.
Bonus Depreciation Still Applies
In addition to Section 179, you can also take advantage of bonus depreciation, which allows for a significant write-off in the first year the equipment is placed in service. Currently the bonus depreciation is 100% for eligible property.
HVAC Qualifies
As long as the system is used more than 50% for business purposes and is installed at a business location, commercial heating and cooling systems are eligible.
In other words, if your system is keeping your business comfortable, it can also keep your accountant very happy.
A Few Things to Keep in Mind
Before you run out and buy a new rooftop unit, here are some quick reminders:
- Talk to your CPA: Tax laws are complex, and you’ll want to make sure this fits your specific situation. A qualified tax advisor can help you maximize your deduction.
- Save your records: Keep documentation of the equipment purchase, financing, and installation. You’ll need it for your tax filings.
- Act before December 31: Your system must be purchased and installed this calendar year to claim the deduction on your 2025 taxes.
Why HVAC Costs Are Still Climbing
Yes, you can deduct more now, but that doesn’t mean HVAC systems are getting cheaper. In fact, the opposite is happening.
As of January 1, 2025, all newly manufactured systems must use EPA-approved refrigerant 454B, replacing the long-used 410A.
Here’s what that change has brought with it:
● Equipment costs jumped 20 to 25 percent
- There’s no added performance or efficiency benefit, just new safety and environmental requirements
● Parts for older systems are becoming scarce and more expensive
So even with tax savings, delaying your upgrade could still cost more in the long run, especially if you’re holding onto a 15-year-old system hoping it’ll “make it through another summer.”
Why Replacing Older HVAC Systems Pays Off
Still not sure if an upgrade makes sense? Let’s do the math.
If your system is 15 years old or more, here’s what you’re likely facing:
- Higher utility bills: 30 to 40 percent more than necessary
- Frequent repairs, which only get more expensive as older parts become obsolete
- Lost incentives: every year you wait is another year you miss out on tax deductions and rebates
By replacing your system now, you can:
- Slash energy bills
- Improve comfort and reliability
- Deduct the full cost under Section 179
- Take advantage of local utility rebates (yes, we’ll help you apply)
How to Take Advantage of Section 179 and the Big Beautiful Bill
Here’s how to make this opportunity work for your business:
Step 1: Schedule an Evaluation
Our team will assess your current HVAC setup, determine eligibility, and provide options that align with your needs and budget.
Step 2: Choose a Qualifying System
We’ll help you select an energy-efficient system that qualifies for Section 179 and delivers long-term savings.
Step 3: Claim Every Available Incentive
We’ll help you combine Section 179, bonus depreciation, and utility rebates to get the most out of your investment, and we’ll even handle the paperwork.
Step 4: Don’t Wait for Prices to Climb Again
Costs have already gone up, and with refrigerant changes and supply chain shifts still rippling through the industry, more price increases could be coming. Lock in your equipment and savings while incentives are still on the table.
Wondering if it’s still worth upgrading?
A few years ago, replacing your HVAC system felt like a tough but necessary expense. Today, it’s one of the smartest financial decisions a business can make.
You’re not just getting better airflow and lower bills, you’re taking advantage of generous federal tax deductions, local utility rebates, and first-year bonus depreciation.
And with a trusted partner like Environment Masters, you don’t have to stress about the process. We handle everything from equipment selection to installation to rebate paperwork, no hassle, just real savings.
If your system is inefficient, outdated, or just plain tired, let’s turn this new legislation into a win for your business.
Call (601) 300-2564 today or schedule a commercial HVAC consultation.
We’ll take care of the details so you can focus on running your business, not sweating over your utility bills.
