Heating, Air-conditioning, & Refrigeration Distributors International (HARDI) supports H.R. 636, America’s Small Business Tax Relief Act of 2015, which reported favorably from the House Ways and Means Committee yesterday.
The bill proposes a revision to the tax code that would make permanent the expensing limits of certain depreciable assets and, for the first time, include heating and cooling equipment in that list. The House could vote on the bill as early as next week.
The bipartisan legislation, authored by Republican representative Pat Tiberi of Ohio and co-sponsored by Democratic representative Ron Kind of Wisconsin, would revise Section 179 of 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 and property. The deduction will phase out after investments exceed $2 million.
HARDI applauds Tiberi and Kind’s efforts, which ease the financial pressures and provide long-term stability for small businesses. 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.
“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.
Other major associations in the HVACR industry such as Air Conditioning Contractors of America (ACCA), Air-Conditioning, Heating, and Refrigeration Institute (AHRI), Mechanical Contractors Association of America (MCAA), Plumbing-Heating-Cooling Contractors Association (PHCC), and Sheet Metal and Air Conditioning Contractors' National Association (SMACNA) have expressed support of this bill.
HARDI (Heating, Air-conditioning and Refrigeration Distributors International) is a voice of wholesale distribution within the HVACR industry.