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Is HVAC considered building improvement or equipment? Understanding the Tax Impact in Quebec

Improve the comfort and energy efficiency of your Quebec home with a high-performance HVAC system. Installing a heating, ventilation, and air conditioning (HVAC) system in your Quebec home is a wise investment that will provide you with considerable benefits in terms of comfort, energy savings, and property value.

Benefits of a High-Performance HVAC System
  • Increased Comfort Year-Round: An efficient HVAC system maintains a comfortable indoor temperature, whether during the summer heat or the harsh Quebec winters.
  • Improved Air Quality: Modern HVAC systems filter indoor air, removing pollutants, allergens, and contaminants that can harm your health.
  • Reduced Energy Bills: Energy-efficient HVAC systems consume less energy than older models, leading to savings on your electricity or natural gas bills.
  • Increased Property Value: A high-performance HVAC system is a valuable asset for your property, enhancing its attractiveness on the real estate market.
Tax Considerations in Quebec
In Quebec, HVAC systems may be eligible for various financial aid programs and tax credits offered by the federal and provincial governments.

Novoclimat Financial Aid Program
The Quebec government's Novoclimat program offers grants to owner-occupants and co-owners for the installation of energy-efficient HVAC systems. Financial aid can reach up to $2,000 for single-family homes and up to $4,000 for multi-unit buildings.
To find out more about Novoclimat, visit the government website: https://transitionenergetique.gouv.qc.ca/residentiel/programmes/novoclimat

Tax Credit for Installing an Energy-Efficient HVAC System
The federal government offers a 25% tax credit on the cost of acquiring and installing an energy-efficient HVAC system. To be eligible, the system must meet specific energy efficiency criteria.

Tax Deduction for Energy Improvement Expenses
Owner-occupants can deduct from their taxable income 20% of eligible expenses incurred for energy improvements to their property. Expenses related to the installation of an energy-efficient HVAC system may qualify for this deduction.

Tips for Maximizing Your Tax Benefits
  • Keep all receipts and supporting documents related to the purchase and installation of your HVAC system.
  • Consult a tax advisor or energy efficiency consultant to determine if you are eligible for available financial aid programs and tax credits.
  • Ensure your HVAC system is installed by a certified contractor to guarantee its efficiency and compliance with current standards.

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