HARDI has applauded the introduction and supports the passage of H.R. 4457, the Section 179d Permanency Act, which would make permanent small business expensing outlined in section 179d of the tax code, and most importantly for the HVACR industry, repeal the exclusion of HVAC units from qualified expenses.
This bipartisan legislation, authored by Rep. Pat Tiberi, R-Ohio, and co-sponsored by Rep. Ron Kind, D-Wisconsin, would reinstate the levels effective during the 2010-2013 tax years allowing taxpayers to expense up to $500,000 of investments in new equipment and property, with the deduction phased out after investments exceed $2 million.
Additionally, the legislation makes adjustments for inflation and repeals the $250,000 limit on real property for qualifying expenses.
“We applaud the efforts of Congressmen Tiberi and Kind. Eliminating the exclusion of HVAC units from 179d provides distributors and the entire HVACR industry with significant opportunity to grow their businesses,” said Talbot Gee, HARDI executive vice president and COO. “Further, this legislation provides all small business owners with the type of certainty that is needed when they consider investments into their companies.”
In a joint statement released following the introduction of the bill, Tiberi, who is chairman of the Ways and Means Subcommittee on Select Revenue Measures, stated, “While small business owners across the country take advantage of Section 179 small business expensing, the fluctuating rules surrounding the measure make it difficult to budget and plan. Rep. Kind and I believe that by making the rules permanent, small business owners will have the stability and predictability they need to grow, expand, and create new jobs.”
“Employers want and deserve stability and predictability when it comes to tax planning,” said Rep. Kind. “This common-sense legislation will help small businesses meet their long-term financial goals, so they can continue to grow and hire new workers in Wisconsin and around the nation.”
H.R. 4457 was favorably reported on by the House Ways and Means Committee.
MANUFACTURERS JOIN R-22 LAWSUIT
Refrigerant manufacturers Arkema, DuPont, and Honeywell filed petitions with the U.S. Court of Appeals to intervene on behalf of the Environmental Protection Agency (EPA) in litigation brought forth by the New Era Group, which seeks to force the EPA to reconsider its April 2013 allocation rule which established R-22 allocation levels for 2012-2014.
Given the timing and current status of this litigation, it is unlikely to have an affect upon allocation levels and markets through the remainder of this year. Further, it is unclear if this issue will be fully resolved before the EPA finalizes the 2015-2019 allocation rule.
Per a media report, the New Era is a Washington, D.C.-based consultancy firm that represents several refrigerant reclaimers, alternative refrigerant manufacturers, and refrigerant distributors who are trying to immediately end all allowances of new and imported R-22. HARDI will continue to report on developments as they occur.