ARLINGTON, Va. - The Air Conditioning Contractors of America is calling the recent passage of a corporate tax bill a victory for heating and air-conditioning contractors. The bill, which was passed by Congress Oct. 11, will provide tax incentives to contractors for the next two years.
One incentive is an increase in expensing limits originally passed last year that raised the deductible amount from $25,000 to $100,000 on qualifying property placed into service in a taxable year. The original legislation had a "sunset" provision under which it would expire, and the incentive end, Dec. 31, 2005. However, the recent legislation extends the incentive through Dec. 31, 2007.
"This is an important step and a vital victory for the HVACR industry because this incentive is putting thousands and thousands of dollars back into contractors' pockets to the benefit of their businesses, their employees and their communities," said Paul T. Stalknecht, president and CEO of the ACCA.