ARLINGTON, Va. — Manufacturers of HVACR and water heating products applauded the efforts of Congress and the president in extending important tax incentives for energy efficient new homes, home improvements, and commercial multifamily buildings. The incentives were included as part of the minibus appropriations legislation passed by Congress and signed by President Trump on December 20. It extends the tax credit from January 1, 2018, through December 31, 2020. This means a retroactive extension to 2018 and a forward extension through 2020. This was a straight extension with no modifications to the credit provisions and requirements.
"Tax incentives that make it easier for homeowners and business owners to replace older, less efficient HVACR and water heating equipment are an important part of the nation's overall effort to improve efficiency and thus save energy," said AHRI President and CEO Stephen Yurek. "Our industry has dramatically improved the energy efficiency of its products and equipment over the past couple of decades, so getting those products into America's homes and businesses in an expedited manner is a win-win for the nation and consumers," he added.
The included language extends the IRS Code Section 25C credit that provides a 10 percent tax credit for the purchase of certain nonbusiness energy efficient products, including residential central air conditioners, certain water heaters, furnaces, and heat pumps, subject to a lifetime cap of $500 per household.
On the commercial side, the language extends the Section 179D tax deduction of up to $1.80 per square foot to help offset the higher cost of more energy efficient building components, and the Section 45L tax credit of $2000 for home builders that use at least 50 percent less energy for space heating and cooling in new homes and a $1000 credit per manufactured home that achieves 30 percent energy savings for heating and cooling or one that meets ENERGY STAR requirements.
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