If passed, H.R. 3515, the HVAC Expensing and Technology (HEAT) Act, introduced by Reps. Pat Tiberi, R-Ohio, and Ron Kine, D-Wis, will allow commercial building owners to immediately expense qualified HVACR equipment replacement under Section 179D of the U.S. Tax Code.
With a Democrat and Republican co-sponsoring this bill, there is an opportunity for bipartisan support to carry it through the legislative process. The bipartisan 2015 PATH Act signed by President Obama expanded and made permanent Section 179 expensing and removed an exclusion which prohibited the expensing of HVACR products, but there were classification issues with the IRS that prevented the provision for expensing HVACR units from taking effect. The HEAT Act would fix this discrepancy and allow small businesses to invest the capital necessary to bring down their utility costs and energy consumption.