A new bill recently introduced in Congress would significantly shorten the depreciation period for certain HVAC systems installed in nonresidential property, a move that would promote the adoption of more efficient HVAC systems.
Introduced by Reps. Melissa Bean (D-IL) and Pete Hoekstra (R-MI), HR4574 would amend the Internal Revenue Code of 1986 to shorten the depreciation period to 20 or 25 years, depending upon the application, compared to the current 39 years.
“Owners also would receive additional incentive to go beyond the minimum efficiencies required in ASHRAE/IESNA Standard 90.1. Replacing this equipment will result in significant energy savings, reduced greenhouse gas emissions, and would encourage the retirement of older chillers that require the use of CFCs,” says Doug Read, ASHRAE’s director of government affairs.
