Will the HVAC business benefit from the tax reforms?
The updated tax code for the heating, ventilation and air-conditioning industry may shorten the depreciation period of old equipment.
“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.”
AHRI comments that the current tax code allows the HVACR and water heating equipment to depreciate over a period of 39 years,. According to AHRI, the depreciation period, and even the possibility of full pay in the first year, will drive the purchase of new equipment, more efficient and environmentally friendly. This will lower costs for businesses and create new 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 about issues related to tax reform and the views and resources of AHRI policy, please visit their website.