U.S. Reps. Pat Tiberi (R-Ohio) and Ron Kind (D-Wis.) introduced the HEAT Act (HVAC Expensing and Technology Act). If passed, it would allow commercial building owners to deduct the full purchase price of HVAC equipment bought during the year under section 179 of the U.S. tax code. With a Democrat and Republican co-sponsoring this bill, there is an opportunity for bipartisan support to carry it through the legislative process. The bipartisan 2015 PATH Act signed by President Obama expanded and made permanent Section 179 expensing and removed an exclusion that prohibited the expensing of HVACR products, but there were classification issues with the IRS that prevented the provision for expensing HVACR units from taking effect. The HEAT Act would fix this discrepancy and allow small businesses to invest the capital necessary to bring down their utility costs and energy consumption.
ACCA President-CEO Paul Stalknecht said, “I am pleased to see members of Congress moving forward on this important issue. It is time for the federal government to recognize the realistic lifespan of commercial HVACR equipment and adjust the depreciation schedule accordingly. Encouraging building owners to replace outdated, inefficient and failing equipment is a win-win for our national energy policy and building owners. ACCA and the HVACR Industry Alliance looks forward to helping advance this legislation and correcting the 2015 PATH Act.”
The HVACR Alliance members include the Air Conditioning Contractors of America; Air-Conditioning, Heating and Refrigeration Institute; Heating, Air-conditioning and Refrigeration Distributors International; ASHRAE; North American Technician Excellence; Heating, Refrigeration & Air Conditioning Institute of Canada; National Air Filtration Association; Plumbing, Heating & Cooling Contractors; Sheet Metal & Air Conditioning Contractors National Association; and the Refrigeration Service Engineers Society.
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