Recovery period39 yearsMACRS · 27.5 years in a residential rental
MethodStraight linemid-month
Section 179Yes, on commercial buildings2026 limit $2,560,000
Bonus depreciationNobuildings and structural parts
ADS period40 yearsif you must or elect to
Includes: Furnaces, air conditioners, ductwork and heat pumps in a commercial building. Watch: Section 179 lets a commercial building owner expense HVAC in year one; otherwise it is part of the 39-year building. In a residential rental HVAC is 27.5-year property.
Work out your own
Deduction in 2026$187.25
Section 179$0.00
Bonus$0.00
Regular MACRS, year 1$187.25
Form 4562
Line 12 · Section 179 expense
$0.00
Line 14 · Special (bonus) depreciation
$0.00
Line 19 · MACRS, 39-year property
$187.25
Year by year · Pub 946 Table A-7a (39-year, mid-month)
Tax year
Rate
Depreciation
Accumulated
Basis left
2026
0.535%
$187.25
$187.25
$34,812.75
2027
2.564%
$897.40
$1,084.65
$33,915.35
2028
2.564%
$897.40
$1,982.05
$33,017.95
2029
2.564%
$897.40
$2,879.45
$32,120.55
2030
2.564%
$897.40
$3,776.85
$31,223.15
2031
2.564%
$897.40
$4,674.25
$30,325.75
2032
2.564%
$897.40
$5,571.65
$29,428.35
2033
2.564%
$897.40
$6,469.05
$28,530.95
2034
2.564%
$897.40
$7,366.45
$27,633.55
2035
2.564%
$897.40
$8,263.85
$26,736.15
2036
2.564%
$897.40
$9,161.25
$25,838.75
2037
2.564%
$897.40
$10,058.65
$24,941.35
2038
2.564%
$897.40
$10,956.05
$24,043.95
2039
2.564%
$897.40
$11,853.45
$23,146.55
2040
2.564%
$897.40
$12,750.85
$22,249.15
2041
2.564%
$897.40
$13,648.25
$21,351.75
2042
2.564%
$897.40
$14,545.65
$20,454.35
2043
2.564%
$897.40
$15,443.05
$19,556.95
2044
2.564%
$897.40
$16,340.45
$18,659.55
2045
2.564%
$897.40
$17,237.85
$17,762.15
2046
2.564%
$897.40
$18,135.25
$16,864.75
2047
2.564%
$897.40
$19,032.65
$15,967.35
2048
2.564%
$897.40
$19,930.05
$15,069.95
2049
2.564%
$897.40
$20,827.45
$14,172.55
2050
2.564%
$897.40
$21,724.85
$13,275.15
2051
2.564%
$897.40
$22,622.25
$12,377.75
2052
2.564%
$897.40
$23,519.65
$11,480.35
2053
2.564%
$897.40
$24,417.05
$10,582.95
2054
2.564%
$897.40
$25,314.45
$9,685.55
2055
2.564%
$897.40
$26,211.85
$8,788.15
2056
2.564%
$897.40
$27,109.25
$7,890.75
2057
2.564%
$897.40
$28,006.65
$6,993.35
2058
2.564%
$897.40
$28,904.05
$6,095.95
2059
2.564%
$897.40
$29,801.45
$5,198.55
2060
2.564%
$897.40
$30,698.85
$4,301.15
2061
2.564%
$897.40
$31,596.25
$3,403.75
2062
2.564%
$897.40
$32,493.65
$2,506.35
2063
2.564%
$897.40
$33,391.05
$1,608.95
2064
2.564%
$897.40
$34,288.45
$711.55
2065
2.033%
$711.55
$35,000.00
$0.00
Basis = cost × business use · bonus = (basis − §179) × bonus rate · each year = (basis − §179 − bonus) × table rate
IRS Pub 946 tables · §179 and bonus per the One Big Beautiful Bill Act · car limits per §280F and the IRS yearly revenue procedure.
$35,000 of HVAC system, year by year
Placed in service March 2026, 100% business use, no section 179 or bonus.
Tax year
Depreciation
2026
$712
2027
$897
2028
$897
2029
$897
2030
$897
2031
$897
2032
$897
2033
$897
2034
$897
2035
$897
2036
$897
2037
$897
2038
$897
2039
$897
2040
$897
2041
$897
2042
$897
2043
$897
2044
$897
2045
$897
2046
$897
2047
$897
2048
$897
2049
$897
2050
$897
2051
$897
2052
$897
2053
$897
2054
$897
2055
$897
2056
$897
2057
$897
2058
$897
2059
$897
2060
$897
2061
$897
2062
$897
2063
$897
2064
$897
2065
$187
Source: Pub 946 chapter 2, qualified section 179 real property: heating, ventilation and air-conditioning property on nonresidential real property placed in service after the building. IRS Publication 946.
Frequently asked questions
What is the depreciation life of an HVAC system?
HVAC systems are 39-year property under MACRS (the General Depreciation System), depreciated with straight line, mid-month. In a residential rental they are part of the building: 27.5-year property, straight line, mid-month. Under the Alternative Depreciation System the period is 40 years. Source: Pub 946 chapter 2, qualified section 179 real property: heating, ventilation and air-conditioning property on nonresidential real property placed in service after the building.
Can I write off an HVAC system in one year?
Section 179 lets you deduct up to $2,560,000 in 2026 (reduced above $4,090,000 of purchases), as long as the business has the income; this applies on nonresidential (commercial) buildings. Bonus depreciation does not apply to buildings and their structural components.
How much depreciation is $35,000 of HVAC system each year?
With no section 179 or bonus, placed in service in March 2026: $712 in 2026, $897 in 2027, $897 in 2028, $897 in 2029, and so on. The calculator above works it out for your own cost, date and business use.
Anything that changes the answer for hvac systems?
Section 179 lets a commercial building owner expense HVAC in year one; otherwise it is part of the 39-year building. In a residential rental HVAC is 27.5-year property.