Sheet metal & Air Conditioning Contractors’ National Association

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Capitol Hill Update: SMACNA efforts intensify to pass HVAC tax incentive bill

Dec 07, 2015

capitolWith the first session of Congress nearing an end, SMACNA and allied industry groups are strongly pushing H.R. 636,America’s Small Business Tax Relief Act of 2015, to make the 2014 IRS tax code expensing (section 179D) levels permanent and provide much-needed certainty for small businesses. The group is seeking an extension of 179D as part of a growing tax extender legislative package expected before adjournment.

H.R. 636, also would provide small business an incentive for increasing energy efficiency retrofits by permanently treating investments in heating and air conditioning equipment-section 2(d). In addition, the legislation will allow classify computer software and certain other investments in real property, as property eligible for expensing. To ensure that small business will continue investing in necessary property and equipment in the coming years, the code provision will keep pace with rising costs by indexing qualified investments to the rate of inflation.

SMACNA contacted each House and Senate office emphasizing the importance of expensing to the HVAC industry. In addition, SMACNA staff has also met with each co-sponsor of H.R. 636 and those on the leading tax committees to improve the odds for its passage.