A number of American manufacturers of heating, cooling, and water heating products, and equipment, members of the Air Conditioning, Heating, and Refrigeration Institute (AHRI), joined more than 750 contractors and distributors, from across the country, in asking the US Congress to extend and expand existing tax credits for home energy-efficiency improvements.
In a letter to the US House and Senate leadership, the companies, which represent some 2.4 million American jobs, requested the extension, as a means to help equipment manufacturers, technicians, installers, distributors, and homeowners alike, in weathering the COVID-19 pandemic impact that has cost more than 400,000 jobs, since March 2020.
AHRI letter seeks tax credits extension
AHRI is in strong support of extending and expanding the tax credit, as a means of restarting the moribund economy, brought about by the COVID-19 pandemic.
This expansion would be a shot in the arm for manufacturers, distributors, installers and consumers alike"
“This expansion would be a shot in the arm for manufacturers, distributors, installers and consumers alike, and would go a long way toward jump-starting our economy,” said AHRI’s Senior Vice President of Government Affairs, Samantha Slater.
The letter to the US Congress states “This tax credit has a proven track record. It puts contractors and manufacturers in this industry back to work while making home improvements that lower homeowners' heating and cooling bills, improve home comfort, and address important environmental objectives.”
Lifetime single-use cap on the credit
The letter seeks a reset of the lifetime single-use cap on the credit and raising the amount from the current 10-15 percent of eligible expenditures, to 30 percent, up to US$ 2,400, for the purchase and installation of energy-efficient cooling and heating systems, windows, insulation, water heaters, and other energy efficiency improvements.
The letter touts the success of a similar initiative, during the recession of the 2008-2009 period, that raised the credit to US$ 1,500 for certain equipment, which drove billions of dollars in economic activity.
Tax incentive for home energy-efficiency improvements
In closing, the letter notes that nearly 80 percent of energy-efficiency companies have fewer than 20 employees and these small businesses have been the hardest hit in the HVAC sector, by the COVID-19 pandemic shut down, with workers unable to get into homes and buildings to do their work.
The letter concludes that providing a robust tax incentive for homeowner energy-efficiency improvements will quickly restart this industry and help put these workers back on the job.