HARDI supports bill changing tax code
HARDI is cheering House passage of a bill that amends the U.S. tax code and repeals an exclusion of HVAC equipment from qualified business deductions.
Called “America’s Small Business Tax Relief Act of 2014,” the House approved the bill 272-144 June 12. It now moves to the Senate. Introduced by U.S. Rep. Patrick Tiberi (R-Ohio) and Rep. Ron Kind (D-Wis.), it repeals an exclusion of HVAC equipment from qualified deductions would return deduction levels to those from 2010-2013 tax years, permitting business owners to expense up to $500,000 in new equipment and property, HARDI says.
The deduction will phase out after investments exceed $2 million, and adjust for inflation. It also eliminates the $250,000 maximum on real property for qualifying expenses.
“We applaud the efforts of Congressmen Tiberi and Kind,” said Talbot Gee, executive vice president and chief executive officer of the Heating, Air Conditioning and Refrigeration Distributors International. “Eliminating the exclusion of HVAC units from (tax code section) 179D provides distributors and the entire HVACR industry with significant opportunity to grow their businesses. Further, this legislation provides all small-business owners with the type of certainty that is needed when they consider investments into their companies.”
The bill may not become law, however. Senate leadership does not support the bill in its current form, and the White House has threatened a veto. A vote date has not been set.