Designed to force a highly partisan Congress to agree to fiscal matters or face steep cuts, the ripple effects of the sequester may be felt by some in the HVACR industry, though many acknowledge that the degree to which the cuts are felt is yet to be determined.
While the so-called fiscal cliff legislation affects the HVACR industry in a variety of ways, the most significant change may be the retroactive extension of the 25C Residential Energy-Efficiency Tax Credit, which expired Dec. 31, 2011.
Legislation that Congress passed and President Obama signed into law to avoid the so-called “fiscal cliff” also retroactively reinstated the 25C tax credits for high-efficiency HVAC and water heating equipment that expired at the end of 2011.
The economy, the fiscal cliff, sequestration, and energy independence are just a few of the issues facing the winners of the 2012 election. But, as one of Washington’s leading pundits recently stated, “This isn’t the first critical election where the stakes are high, and it won’t be the last.”