Several tax provisions impacting the HVAC industry, including 25C, the expanded Section 179 expensing allowances, and the 179D Commercial Building Tax Deduction, are set to expire on Dec. 31, 2013. And although industry leaders agree that the provisions will probably be renewed, they also agree that it is unlikely to occur in 2013. That would again put some manufacturers, distributors, and contractors in limbo as they wait to receive word that the tax incentives are once again available.
The lengthy list of about 65 tax provisions that are expiring is the same list every year or two, said Charlie McCrudden, senior vice president of government relations for Air Conditioning Contractors of America (ACCA). “Congress passes these extender packages and then sits around until they get close to expiring again before they debate whether they’re necessary or effective provisions. They usually keep almost all in place.”