Heating, Air-conditioning, and Refrigeration Distributors International (HARDI) reported on Feb. 13 that H.R. 636, America’s Small Business Tax Relief Act of 2015, passed the House with a vote of 272-142 Friday morning. HARDI continues to support the bill, which would revise the tax code to make permanent the expensing limits of certain depreciable assets and, for the first time, include heating and cooling equipment in that list.
HARDI continues to support the bill, which would revise the tax code to make permanent the expensing limits of certain depreciable assets and, for the first time, include heating and cooling equipment in that list.
The bill now faces a vote in the senate, after which it will reach President Obama's desk. Full passage of the bill remains uncertain.
Republican representative Pat Tiberi of Ohio introduced the bill, co-sponsored by Democratic representative Ron Kind of Wisconsin, which would relieve pressures felt by small businesses by creating long-term certainty in Section 179 of the tax code. Furthermore, the bill allows businesses of all sizes to reduce the cost of capital and improve cash flow, allowing them to focus on expansion and job creation.
The bipartisan bill revises the tax code to the levels effective during the 2010-2013 tax years (adjusted for inflation), allowing businesses to expense up to $500,000 of investments in new equipment, property and software. The deduction will phase out after investments exceed $2 million.
HARDI continues to support the bill, applauding Tiberi and Kind for their efforts and commitment to small businesses.
“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 HARDI President Bill Bergamini (ILLCO, Inc.).
“America’s Small Business Tax Relief Act helps HARDI members and other small businesses by providing certainty in the tax code. 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,” said HARDI CEO Talbot Gee.