HARDI is cheering House passage of a bill that it says will benefit HVAC market distributors.
On Feb. 13, the House passed 272-142 the America’s Small Business Tax Relief Act of 2015, which revises the U.S. tax code to change the expensing limits of some depreciable assets. The bill would include HVAC construction equipment.
The legislation was sponsored by Reps. Pat Tiberi (R-Ohio) and Ron Kind (D-Wis.)
“This bill shows a commitment by Congressmen Tiberi and Kind to support small business. Eliminating the exclusion of HVAC equipment provides distributors and the entire HVAC industry the opportunity to significantly grow their business, while helping other businesses achieve significant energy savings,” said Bill Bergamini of Illco Inc., president of the Heating, Air-conditioning & Refrigeration Distributors International.
The bill revises the tax code to the levels effective during the 2010-2013 tax years adjusting for inflation, allowing businesses to expense up to $500,000 of investments in new equipment, property or software. This could include ductwork fabrication or other HVAC construction machinery.
The deduction will phase out after investments exceed $2 million.
“America’s Small Business Tax Relief Act helps HARDI members and other small businesses by providing certainty in the tax code,” said HARDI CEO Talbot Gee.“For too long, our members have dealt with a patchwork tax code that limits investment. This important bill will allow HARDI members to better invest in their businesses, whether that is machinery or a technology upgrade.”
The bill now goes to the U.S. Senate.