Lawmakers Propose Tax Breaks for IAQ, HVAC System Improvements

New legislation connects Indoor Air Quality improvements, workforce development, and HVAC modernization through targeted federal incentives.
Feb. 25, 2026
3 min read

Key Highlights

  • The Airborne Act proposes tax incentives for IAQ assessments, filtration upgrades, and HVAC system improvements in commercial buildings.
  • Financial incentives include tax credits up to $250 per square foot for HVAC upgrades, with additional benefits for projects meeting wage and apprenticeship standards.
  • Industry organizations endorse the bill, highlighting its potential to improve indoor health and create new project opportunities for contractors.

WASHINGTON — Bipartisan legislation aimed at improving Indoor Air Quality (IAQ) in commercial and institutional buildings has been reintroduced in Congress, proposing tax incentives to encourage ventilation assessments and HVAC system upgrades.

U.S. Rep. Don Beyer (D-VA) and Rep. Brian Fitzpatrick (R-PA) announced the reintroduction of the Airborne Act, which would incentivize non-residential building owners to evaluate indoor air performance and invest in ventilation and air filtration improvements.

According to Beyer, the legislation is designed to address lessons learned during the COVID-19 pandemic, when airborne respiratory risks highlighted the importance of effective ventilation and indoor environmental quality. The bill seeks to reduce workplace illness, improve occupant comfort, and strengthen resilience against future public health challenges while helping offset the cost of HVAC system improvements.

The proposed legislation includes several financial incentives tied directly to Indoor Air Quality assessments and system performance upgrades:

  • A tax credit of $1 per square foot for commercial building Indoor Air Quality assessments, capped at the assessment cost;

  • Tax credits of $5 per square foot for air filtration upgrades and $50 per square foot for HVAC system improvements, limited to 50% of total project costs; and

  • Increased incentives—up to $25 per square foot for filtration and $250 per square foot for HVAC upgrades—when projects meet prevailing wage and apprenticeship requirements established under the Inflation Reduction Act.

To qualify, upgraded systems must meet either ASHRAE Standard 62.1-2022 or Standard 241-2023.

The bill also proposes a voluntary certification program administered jointly by the U.S. Department of Energy and the Environmental Protection Agency, allowing property owners to verify compliance with qualifying Indoor Air Quality standards. Nonprofit organizations would be eligible for incentives, and certain public-sector projects could transfer credits to private entities performing the upgrades.

Fitzpatrick said the legislation connects healthier indoor environments with workforce development by pairing tax incentives with prevailing wage and apprenticeship requirements intended to support skilled trades and job growth.

Industry organizations have expressed support for the proposal. Bill McQuade, president of the ASHRAE, said the measure aligns with the organization’s focus on healthy buildings and improved indoor environmental quality through system assessments and upgrades.

The International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART) also endorsed the legislation, citing opportunities for trained professionals to perform Indoor Air Quality assessments and HVAC modernization projects across schools, hospitals, offices, and other commercial facilities.

If enacted, the Airborne Act could expand demand for Indoor Air Quality evaluations, ventilation improvements, and ASHRAE-compliant HVAC upgrades, creating new project opportunities for contractors while advancing building health and performance standards nationwide.

 
Note: This piece was created with the help of generative AI tools and edited by our content team for clarity and accuracy.
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