ACCA pushes back on Senate proposal to eliminate key HVACR commercial tax incentive
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ACCA has sent a letter to Senate Finance Committee Chairman Mike Crapo and House Ways and Means Chairman Jason Smith urging Congress to preserve the Section 179D Energy Efficient Commercial Building Deduction—an important tax incentive that helps HVACR contractors, building owners, and the broader skilled-trades community improve energy efficiency and strengthen America’s built environment.
While the House version of the “Big Beautiful Bill” (BBB) leaves Section 179D untouched, the Senate Finance Committee’s draft would eliminate the deduction. With the Senate poised to vote on the bill later this week, ACCA is working to safeguard this longstanding, bipartisan provision that drives business for ACCA members.
Help protect Section 179D and other energy-efficiency incentives at risk of elimination. Sign ACCA’s Energy Efficiency Tax Incentive Action Alert to contact your Senators and urge them to oppose these cuts.
Why Section 179D matters
For nearly two decades, Section 179D has served as an important tool for HVACR contractors and commercial building owners. By allowing owners to deduct the cost of installing qualifying energy-efficient systems—such as high-performance HVACR units—the deduction lowers energy bills, reduces strain on the electric grid, and supports domestic energy independence.
Recent changes, however, attached a “bonus” deduction of up to $5 per square foot to prevailing-wage and apprenticeship requirements. While well-intentioned, these labor mandates add significant costs and compliance complexity for contractors and customers without improving energy outcomes.
ACCA’s two requests to Congress
- Preserve Section 179D. Eliminating the deduction would undercut ongoing efforts to make America’s buildings more energy-efficient and resilient.
- Remove the prevailing-wage and apprenticeship requirements tied to the bonus deduction. Rolling them back would reduce federal spending, streamline compliance, and keep the focus on proven energy-saving results.
Take action today
With a Senate vote expected soon, now is the time to speak up. Please take a moment to participate in ACCA’s Energy Efficiency Tax Incentive Action Alert to contact your Senators and Representatives and urge them to protect Section 179D, along with Sections 25C, 45L, and 25D, which are also at risk of elimination as part of the BBB.
Your outreach helps ensure these important tax provisions remain in place to support energy-efficient upgrades and the HVACR workforce.
Posted In: Energy Policy, Government, Taxes
