Have you been told your air conditioner needs repairs? How do you know when it’s worth spending the money on a repair, or if you should bite the bullet and replace it now? Air conditioner repair or replace decisions are challenging even for the experts.
Predicting how much more life you might get from your existing system is not an exact science. Plus, there are developments happening now that are certain to have an impact on your decision.
Keep reading to find out what you need to know before making an air conditioner repair or replace decision.
3 developments that could change your air conditioner repair or replace choice
For businesses and those with older air conditioners, recent developments might make your air conditioner repair or replace decision easier.
1. Air conditioner repair cost is going up.
Many types of repairs require adding refrigerant to the system. If your air conditioner is more than 10 years old, chances are it uses and older refrigerant chemical: either R22 (also known as Freon), or R410a.
Here’s the bad news: R22 has been phased out and can no longer be manufactured or imported in the U.S. And that affects the price of repairing your old unit. R410a will be phasing out as of January 1, 2025, and it’s the same story: as the supply is reduced, the price will go up.
If you’re facing an air conditioner repair or replace decision for an older air conditioner, the repair estimate might make the decision for you. It might not be worth putting that much money into an aging piece of equipment that’s nearing the end of its life.
2. The replacement decision is complicated.
As of January 2024, systems with older refrigerants (like R22 or R410a) can no longer be installed as per government regulations. And the new systems are going to be as much as 25% more expensive. That’s because of the required safety features and the additional costs to build, install, and service them.
Another important consideration: you won’t be able to retrofit older equipment to use the new refrigerants.
There is a window of opportunity to install a system that uses R410a at reduced prices, since manufacturers are looking to reduce their inventory of equipment they won’t be able to sell. But the timeline is tight and might not work for every business.
3. Tax laws give you a big break when you buy a commercial air conditioner.
Finally, some good news! Your air conditioner repair or replace decision might cost you more than you expected, but the new tax laws give you back some of the cost of air conditioner replacement.
Typical savings can be at least $5000 for an average system! For a large system with many components, the savings can be quite substantial.
Since the tax law was passed, businesses can immediately expense heating, air conditioning and ventilation equipment. Now you can write off the ENTIRE COST of all components in the year you purchase them.
That’s a big change from the old tax rules. Before the new law, you had to depreciate the cost of HVAC components over a period of 39 years. We wish the equipment lasted that long! Under the old accounting rules, your tax write off would be a few hundred dollars when you purchased an average $14,000 HVAC system.
Learn more: NYC Businesses: Get a Federal Tax Credit for HVAC Installation
More advice for making your repair vs. replace decision
Don’t decide on the spot. Be wary of any service provider that insists you need to rush into a decision to buy a new air conditioner. Be even more wary if they have not offered an adequate explanation of what’s wrong- or they can’t answer your air conditioning repair questions.
Get an unbiased assessment of your equipment’s condition. Look for an HVAC company that does both new equipment installations and repair service. That way, you can be sure they have no vested interest in advising you to repair or replace the air conditioner.
Next, read our free guide to help you gather the facts and make an informed air conditioner repair or replace decision:
