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Archives for October 2020

October 14, 2020 by Matt Hanson

Compressor Failure and the Effects on Warranty

Identifying why compressor failure is subject to many variables and is important to understanding warranty implications. Although compressors fail for a multitude of reasons, poor installation and maintenance are the most common causes. However, for the vast majority of compressors returned for claims, rarely is it due to a defect in the manufacturer supplied part.

Determining why a compressor has failed is a challenge for contractors of light commercial cooling systems. The mere fact that installation and maintenance procedures are key factors means that most compressor failures are preventable. Therefore, it is of the utmost importance to understand the various ways in which these failures occur.

Following OEM guidelines for installation, startup and service are critical for installers of both ducted and ductless systems. For instance, the act of completing a compressor changeout can introduce contaminants to an HVAC system. Conversely, there is the rare occurrence of natural causes such as lightning or line voltage fluctuations that happen. On the other hand, proper routine maintenance improves the long-term reliability of the system.

This allows technicians to identify issues before they can cause a catastrophic failure. For instance, a dirty outdoor unit coil will result in the inability to reject heat, thus increasing compressor operating temperatures. When this happens, the compressor forces more expended energy while providing less capacity. Therefore, regular routine maintenance is key to keeping a system running well and avoiding compressor breakdown.

Other factors that affect compressor life

When it comes to compressor endurance, keeping refrigerant lines free of moisture or oxidization is very important. When refrigerant lines become contaminated it causes the internal lubricant to become acidic, which can eat away at internal windings.

Another factor contributing to compressor failure is incorrect refrigerant line sizing. When this occurs, it affects pressurization and evacuation to ensure the absence of leaks. It is also important to have correct minimum unit clearance and refrigerant charging procedures. These factors are critical to longevity and the life expectancy of the compressor.

Overheating is yet another variable that causes compressors to lose their operating capabilities. This usually happens when there is not enough refrigerant in the system. When overheating happens over an extended period it will cause the breakdown of winding insulation. Symptoms of overheating may include compressor short cycling due to increased trips on protection devices. This reduces heating and/or cooling performance, and an increases current draw.

Training and Startup Procedures

Contractors can help mitigate the chances of compressor failure by adhering to each manufacture’s startup procedure. This is because each manufacture has unique steps that must transpire in order to keep equipment running smoothly. Finally, attending a manufacturer training session is a good step in achieving longevity in HVAC systems.

Filed Under: Commercial HVAC, News Tagged With: #compressor, #construction, #hvacquality, #hvacr, #warranty

October 8, 2020 by Matt Hanson

Now Is the Perfect Time to Upgrade an HVAC System

Cares Act

Section 179 of the 2020 Cares Act

Just what is section 179 of the tax code and what does it mean for HVAC in 2020? Section 179 which was enacted in 2008 is more beneficial to small businesses than ever. Known as the SUV Tax Loophole, it adapted in subsequent years to adjust tax deductions factoring depreciation. Fast forward to March of 2020 and we now have the that that grants cash to business owners through accelerated deductions through the Cares Act. Combined with relief aid for the Corona pandemic business owners can realize even more savings.

What the Cares act does is provide full deductions in a single year instead of having to spread the deductions over several years. It Accomplishes this by corrected a retail glitch in the Tax Cuts and Jobs Act (TCJA).  For example, in the past when your business bought qualifying equipment, it typically wrote it off a little at a time through depreciation. So, if your company spent $50,000 on equipment, it gets to write off approx. $10,000 a year for five years. This made the Qualified Improvement Property (QIP) subject to a 39-year depreciation.  With the Cares act, QIP changed from 39 down to 15 years and became eligible for bonus depreciation to be taken as well.  Furthermore, the Cares Act invalidates the $2 million a year limit that applied to IRC Section 179 property. As an added benefit these changes are retroactive going back to 2018.

So what type of facilities qualify as a QIP

  • Office buildings
  • Hospitals and other healthcare facilities
  • Logistical facilities
  • Factories and manufacturing plants
  • Other non-residential facilities

What Section 179 means for your business

With the Cares Act, Section 179 provides huge saving can be made when a business invests in new or used equipment.  A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to the capital account. This includes Property applicable include heating, ventilation, and air-conditioning. Under IRS Tax Code Section 179, installing a new HVAC system provides a tax deduction for the project costs. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year.

Summary

Businesses can now take advantage of both Section 179 and Section 168(k) Bonus Depreciation allowances at the same time. However, the deadline for putting the new equipment into place to qualify for the tax benefit is December 31, 2020. Finally, as each business is unique, consult with your tax attorney or tax preparation team before claiming the tax benefits.

Filed Under: News Tagged With: #Cares Act, #hvactechnician #airconditioning #heating #hvactech

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