Proposed Energy Bill Seeks Long-Term Stability for HVAC Tax Incentives

HVAC

Significant changes may be on the horizon for tax incentives that support HVAC and sheet metal work, following the introduction of the American Energy Dominance Act (H.R. 8477). Proposed by Congressman Brian Fitzpatrick (R-PA) and supported by key stakeholders in the construction and labor sectors, the legislation aims to provide long-term stability for federal tax credits tied to energy efficiency projects across the United States.

Currently, two of the most critical incentives for HVAC-related activities — the Section 179D Energy Efficient Commercial Buildings Deduction and the 45L New Energy Efficient Home Credit — are scheduled to expire in 2026. Fitzpatrick has noted that this limited timeline increases the likelihood of essential projects being postponed, reduced in scope, or abandoned altogether. The proposed bill seeks to make the 179D deduction permanent while extending the 45L credit through 2032.

Source: Air Conditioning Contractors’ National Association (SMACNA)