B_0815_Newsfeed_HVAC

Why the HVAC Industry Benefits from Tax Reform

May 4, 2017

The heating, ventilation and air conditioning industry may stand to benefit from an updated tax code that could reduce the depreciation period on older equipment. 

The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) last week made it public their support for any tax reform from the Trump Administration.

“We are encouraged by the President’s willingness to work with Congress to make needed reforms to our tax system, says AHRI President and CEO Stephen Yurek. “We look forward to working with the Administration and Congress on ways to improve the current system and spur economic growth by allowing companies to expense the full cost of capital equipment in the tax year purchased, or at least reduce the depreciation period to be more aligned with the useful life of our equipment.”

The AHRI mentions that the current depreciation period for capital HVACR and water heating equipment is set at 39 years in the tax code, in some cases more than double its useful life. Further, AHRI argues that depreciation period or even allowing for full expensing in the first year, will encourage the purchase of new, more efficient, more environmentally friendly equipment that will lower costs for businesses and create jobs.

“Economic growth can also be spurred and jobs created by bringing the corporate tax rate more in line with those of other industrialized nations. Reducing the top rate would promote economic growth, allow U.S. companies to more effectively compete in the global marketplace, and attract foreign investment to the U.S,” says the AHRI President.

To read more on tax reform issues and AHRI’s policy views and resources, visit their website here. 

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...