Jan. 7, 2008: ASHRAE Provides Technical Guidance on Proposed Depreciation Bill
Reps. Melissa Bean (D-Ill.) and Pete Hoekstra (R-Mich.) recently introduced HR4574, which would amend the Internal Revenue Code of 1986 to provide a shorter recovery period for the depreciation of certain systems installed in nonresidential real property or residential rental property.
ASHRAE, at the request of Bean, provided language on the depreciation of HVACR equipment. The existing depreciation period is 39 years. The proposed legislation would reduce the period to 20 or 25 years, encouraging replacement of equipment sooner that would result in more modern, efficient equipment being installed.
“ASHRAE contributed language that would encourage building owners to replace older, less-efficient HVACR equipment with newer, more efficient systems,” said Doug Read, ASHRAE’s director of government affairs. “Owners also would receive additional incentive to go beyond the minimum efficiencies required in ASHRAE/IESNA Standard 90.1. Replacing this equipment will result in significant energy savings, reduced greenhouse gas emissions, and would encourage the retirement of older chillers that require the use of CFCs.”
Publication date: 01/07/2008