If you’re in HVAC or sheet metal, you know what that means: more upgrades, more retrofits, and more demand for skilled labor. The bill also extends credits for hydrogen production and clean electricity, opening up new opportunities for advanced energy projects that need sheet metal fabrication, ductwork, and high-performance HVAC systems.

Union and SMACNA Support: Voices from the Field

Stanley E. Kolbe, Jr., Executive Director of Government and Political Affairs for the Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA), spelled out the stakes: “Restoring these incentives would stimulate efficient construction and retrofit activity across the nation, especially in the residential, industrial and transportation sectors now seeing a lag.” In a letter to lawmakers, Kolbe warned that the phase-out of these credits “is already slowing investment and hiring at a time of higher energy costs.” For contractors, that means fewer jobs and less work on the table.

North America’s Building Trades Unions (NABTU) President Sean McGarvey called the bill “a commitment to an all-of-the-above energy approach,” adding that it “will aid in building our nation’s energy dominance in a way that supports hard working Americans with middle-class sustaining jobs.”

Clean Energy Advocates Weigh In

Environmental Entrepreneurs (E2), a national clean energy business group, also voiced support for the American Energy Dominance Act. E2 Executive Director Bob Keefe called the bill “a modest – but smart – step back in the right direction.” He noted, “Amid soaring electricity costs and tens of billions in clean energy projects getting cancelled and delayed across the country, this is a modest – but smart – step back in the right direction.”

Keefe added, “Lawmakers on either side of the political aisle are beginning to realize that there shouldn’t be anything political or partisan about cheaper energy, more efficient homes, and the jobs, investments, and energy security that comes with building more clean energy.”

The “American Energy Dominance Act,” he said, would not only resurrect and extend tax deductions and credits for commercial and residential energy efficiency investments, but also remove barriers for businesses that invest in or produce clean energy, and extend credits for clean hydrogen production – all of which are critical for the HVAC and sheet metal industries.

What’s In the Bill for Sheet Metal and HVAC Contractors?

• 179D Deduction: Permanent extension means commercial retrofit and new construction projects can count on this incentive for energy-efficient HVAC and building envelope work for years to come.
• 45L Credit: Extended through 2032, so residential new construction and major upgrades get a boost – good news for those who supply, fabricate, or install high-efficiency systems.
• Clean Energy Credits: Longer timelines for hydrogen and electricity tax credits open the door for large-scale infrastructure and industrial projects, many of which rely on advanced sheet metal systems and complex HVAC solutions.

Why Certainty Matters

Fitzpatrick put it simply: “When the rules are unstable, projects stall, hiring slows, investment hesitates, and the people counting on progress pay the price.” Kolbe adds that the loss of these energy efficiency incentives has already led to “slowing investment and hiring” across the HVAC and sheet metal industry, especially as energy costs rise. Restoring and extending these credits, Kolbe argues, would help drive immediate demand for skilled labor, support ongoing apprenticeship programs, and keep contractors and suppliers busy with both new construction and retrofit projects in the coming years.

The bill is in committee, and industry groups like SMACNA and NABTU are urging fast action before incentives expire. If you care about keeping the work coming and growing the skilled trades, keep your eye on this one.

Read the bill’s status and get updates at Congress.gov and Rep. Fitzpatrick’s office