The incentive is an increase in expensing limits originally passed last year that raised the deductible amount from $25,000 to $100,000 on qualifying property placed into service in a taxable year.
The original legislation had a "sunset" provision under which it would expire, and the incentive end, on Dec. 31, 2005. However, the new legislation extends the incentive until Dec. 31, 2007.
"This is an important step and a vital victory for the HVACR industry, because this incentive is putting thousands and thousands of dollars back into contractors' pockets to the benefit of their businesses, their employees, and their communities," said Paul T. Stalknecht, ACCA president and CEO.
"But it is just one step toward our goal of making this increase in expensing limits permanent. Reverting to pre-2003 levels would amount to a huge tax increase on contractors. We also need the ability to plan ahead that can only come with making this tax cut permanent.
"We salute the bipartisan majorities in Congress for enacting this important legislation, and President Bush for supporting it."
Publication date: 10/11/2004