HVAC companies have vehicle fleets, specialized equipment, and service-based revenue models that create significant untapped tax savings.
These are the opportunities we find in nearly every hvac contractors engagement — money left on the table by traditional CPAs.
Depreciating service vans, trucks, and diagnostic equipment over long schedules instead of expensing them
Operating all service divisions (residential, commercial, new construction) under one entity
Not separating fleet and equipment ownership from the operating company
Missing R&D credits on energy-efficient system design and innovative installation methods
Not leveraging the 179D energy-efficient building deduction on commercial HVAC projects
These are the strategies we evaluate and deploy for every hvac contractors client — tailored to your specific numbers.
Section 179 on service vehicles, diagnostic tools, fabrication equipment, and warehouse infrastructure
Entity structuring: separate fleet/equipment company, residential operations, and commercial operations
R&D tax credit for designing energy-efficient HVAC solutions, testing new systems, and developing custom ductwork fabrication
Section 179D deduction for designing or installing energy-efficient HVAC systems in commercial buildings
Cost segregation on company-owned facilities — reclassify shop infrastructure, overhead cranes, and HVAC systems
How we turned a $217K tax bill into over $1M in cumulative savings.
Yes. Section 179 and bonus depreciation allow you to deduct the full purchase price of qualifying service vans, trucks, and equipment in the year of purchase. A fleet of 10 new service vans at $50K each is a $500K deduction in year one.
Section 179D provides a deduction for designing or installing energy-efficient HVAC, lighting, or building envelope systems in commercial buildings. HVAC contractors who install qualifying high-efficiency systems can claim $0.50–$5.00 per square foot of the building served.
Yes. Designing custom HVAC solutions, testing new equipment configurations, developing energy-efficient systems, and engineering complex ductwork layouts can all qualify. We typically find $15K–$50K in annual R&D credits for mid-size HVAC companies.
The optimal structure typically separates residential service, commercial/new construction, and fleet/equipment into distinct entities. This provides liability isolation between divisions, cleaner per-division financials, and tax optimization opportunities.
We analyze your current situation, identify every opportunity, and show you exactly what you're leaving on the table. If we can save you money, we'll present a clear proposal with a fixed fee.
Book a free review and we'll identify the hvac contractors-specific opportunities hiding in your numbers.
Tell us about your business and we'll identify every savings opportunity available to you.