How to Claim the 2022 Small business Indoor Air Quality Tax Credit: A Step-by-Step Guide
Breathing in clean air is essential for our health, and the Canadian government knows it. That’s why they’ve introduced the 2022 Small Business Indoor Air Quality Tax Credit, a program aimed at improving the air we breathe inside our businesses. The government is offering a tax credit to those who upgrade or maintain their HVAC systems to meet certain standards. In this article, we’ll guide you through the steps to claim the credit and help you breathe easy.
Step 1: Check Your HVAC System
To claim the Indoor Air Quality Tax Credit, make sure your HVAC system meets the minimum requirements and your small business is eligible. Small business owners who are unincorporated sole proprietors or Canadian-controlled private corporations with taxable capital under $15 million in the previous tax year can claim the credit. For example, if you had expenses in 2021, the cap applies to the tax year 2020. If you had expenses in 2022, the cap applies to the tax year 2021. You can find more information on the Government of Canada website.
Eligible expenses: Money spent on buying, setting up, modifying, or improving a new or upgraded HVAC system that is used at a qualified location. This also includes expenses for buying a device that filters air using a HEPA filter and is used at a qualified location
Step 2: Contact a Professional
Vacu-Man Furnace and Duct Cleaning is a reliable business available to keep your HVAC system running smoothly and meeting all the necessary industry standards. Our licensed technicians use their expertise and experience to thoroughly assess your system, make any needed upgrades or maintenance, and provide you with proof of work done for your records. Vacu-Man has worked in the industry for many years and can help guide you through all the necessary steps to get a tax rebate if allowed, as well as ensure that your air quality is as safe and healthy as possible
Step 3: File Your Taxes
Now that your HVAC system is up to date and cleaned, it’s time to start thinking about filing your business taxes. Before you do, be sure to consult with your accountant to see if you’re eligible for the Small Business Indoor Air Quality Tax Credit. Your accountant will be able to guide you through the process, double check your forms and ensure that everything is done in compliance with all applicable laws. This credit can help businesses reduce some of your profit tax up to $2,500 and in addition you’ll have more efficiency and lower overall HVAC costs.
Step 4: Keep Your Receipts and Documentation
It’s important to keep all receipts and documentation related to your HVAC system upgrade or maintenance. This will help you prove that you’ve met the minimum requirements and are eligible for the tax credit. Make sure to keep all paperwork in a safe place and keep a copy for your records.
Step 5: Get Your Rebate
Once you’ve completed all the steps, you’ll be able to claim the 2022 Small Business Indoor Air Quality Tax Credit. The government will send you a rebate based on the amount you spent on your HVAC system upgrade or maintenance.
In conclusion, the Small Business Indoor Air Quality Tax Credit is a great opportunity for Canadians to improve the air they breathe inside their homes. By following these simple steps, you can claim the credit and breathe easy knowing that your HVAC system is working to keep you and your family healthy. If you have any questions or need assistance with your HVAC system, don’t hesitate to contact Vacu-Man Furnace and Duct Cleaning. We’re here to help!
Don’t forget to check out the Ontario Debt Clock built by Vacu-Man Furnace and duct cleaning to share what we as Ontario citizens are required to pay to get out of debt in Ontario