Commercial Equipment Tax Credit
AHRI supports several key improvements to the existing tax code in order to revamp Section 179D (the Energy Efficient Commercial Building Tax Deduction) including: fixing the existing deduction for new buildings; focusing on multiple paths for qualification with retrofits; and to allow credit to be shared among pertinent building improvement stakeholders. These improvements will accelerate the replacement of older and less efficient equipment, thus creating more jobs and improving the energy efficiency and value of our nation’s commercial buildings.

Common Sense Depreciation     
Heating, cooling, and water heating systems in commercial and residential rental properties provide for the fundamental comforts and health of its occupants. They also consume the largest share of energy within the building. Upgrading these systems decreases energy consumption while also increasing the overall value of the property. Combining the expected dollar savings from increased energy efficiency with a more favorable depreciation schedule can provide for a strong incentive to building owners to improve a building’s system. Current IRS code allows for the deduction of the costs over a 39 year period, while most equipment is typically ready to be replaced around 20 to 25 years. AHRI and its members fully support changing the current depreciation timeline to better fit with the life expectancy of these products. This is a technology neutral and common sense approach to using the existing tax structure to improve the efficiency and overall value of America’s building stock.

Compliance Burden
AHRI’s recognition by DOE and EPA as a verified third-party certification body means that our association plays a pivotal role in the enforcement and crafting of federal policies and regulations affecting our members’ products. AHRI’s certification programs obviate the need for complex, burdensome government programs that would duplicate this successful industry program that has been in place decades longer than federal and state efficiency standards. AHRI has consistently urged DOE to rely upon our successful certification program to limited success. We urge Congress to direct DOE to support the role of recognized and successful third party certification programs, such as the AHRI program.

Energy Efficiency
HVACR and water heating manufacturers support and encourage the adoption of energy efficient equipment in homes and businesses. As an industry, we strive to work effectively with environmental advocates and federal agencies to craft sensible and feasible energy efficiency policies. AHRI and its 300+ members stand ready to work with all parties to expand consumer choices, reduce national energy consumption, and continue to positively contribute to the American economy.

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