Congressman Peter Hoekstra (R-Mich.), a member of the Congressional Manufacturing Caucus, has introduced legislation, entitled H.R. 1241, the "Cool and Efficient Buildings Act," which will reduce the depreciation period from 39 years to 20 years for "any property which is part of a heating, ventilation, air conditioning, or refrigeration system and which is installed on or in a building which is non residential real property."

According to Hoekstra, "The current 39-year depreciation period on HVACR systems is not reflective of their average life span, and it is not cost effective. The Cool and Efficient Buildings Act will provide an incentive for businesses to invest in new equipment, which will save businesses money in the long run and provide another stimulus to the U.S. economy."

The legislation notes that the tax code change would decrease the nation's energy consumption by taking advantage "of the remarkable increase in energy efficiency due to technological advances" achieved by the air conditioning industry.

Building owners have replaced 37,643 and converted 9,060 CFC chillers, leaving an estimated 33,297 still in service, most of which use CFC-11 or CFC-12 refrigerants. ARI manufacturers estimated there will be 155 conversions and 2,674 replacements during 2005, bringing the total converted and replaced to 62 percent of the total by Jan. 1, 2006.

For more information, visit www.ari.org.

Publication date: 05/02/2005