The new AC equipment would be reported as an improvement to the building, which would be depreciated over the same class life as the building (39 years for a commercial property). However, you may be able to write off these costs if you qualify for the Safe Harbor Election for Small Taxpayers. TurboTax will ask you about this election under the Assets/Depreciation section of your Rental Property. If you choose this election, you can expense up to $10,000 in costs that would otherwise be depreciated over a very long time.
You can report this under Deductions & Credits >> Casualties & Thefts. Be sure to check the box for "Income-producing property." You'll need to know the appraised value before and after the casualty loss and the amount of insurance reimbursement (if any).
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