The Plumbing-Heating-Cooling Contractors-National Association (PHCC) reports that it has reviewed a draft of the legislation, which would accelerate the recovery period to 15 years for equipment such as HVAC, plumbing, electric, and lighting. Presently, the tax code indicates that these systems can be depreciated over 39 years. In practical terms, PHCC notes, the economic useful life is much shorter.
Hoekstra's legislation would benefit contractors by making investments in new energy-efficient equipment more affordable for building owners.
Publication date: 12/15/2003