Make an Investment to Preserve the HVACR Industry
Business as “unusual.” That’s how I have been answering the question “How’s business?”
The effect of the COVID–19 has impacted every facet of our businesses from online meetings, to the personal protective supplies that we scrambled to find and purchased, to the monitoring of our coworkers’ health. Everyday we are faced with the decisions of safety, job access, or the health of those around us.
To add to the confusion, each city, state, and municipality has been impacted at varying levels, resulting in different restrictions and regulations. Fortunately, as HVAC contractors, we have been blessed to be able to keep our “essential” businesses open. Truly, business as “unusual.”
These are times in which being a member of a strong national trade association pays off. We each have asked the question “Why do I need to be spending money on dues?” The dues we pay are investments in the preservation of our industry. When the COVID–19 pandemic really struck the economy, ACCA was already there lobbying Congress to have the HVAC industry listed as “essential.” Soon after, the Paycheck Protection Program (PPP) rolled out and ACCA was there to help contractors in navigating the paperwork.
ACCA’s Contractor Forum was buzzing with ideas, solutions, and great advice for the PPP. ACCA also arranged a webinar with Congressman Markwayne Mullin (R-OK) to talk about the PPP program — to which we are extremely grateful to Congressman Mullin for the valuable information and his time to do this. Watch it here https://bit.ly/mullinwebcast.
Recently, ACCA has been pressing Congress to oppose the IRS taxation of the PPP funds. The recent ruling by the IRS would require participants to pay taxes on any expenses that are paid for by PPP funds, resulting in loan forgiveness that would otherwise be deductible. This ruling effectively makes PPP funds taxable income and mitigates much of the economic relief that the CARES Act was designed to deliver.
The ruling states, “no deduction is allowed under the Internal Revenue Code (Code) for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).” This is contrary to the purpose of the CARES Act, which specifically states, “any amounts forgiven by a PPP loan “shall be excluded from gross income.”
This ruling has already resulted in bipartisan criticism from lawmakers who wrote the bills, who claim it was not their intention to relieve employers of payroll costs and other business-related expenses, while at the same time making them pay more in taxes. ACCA has been diligently fighting for Congress to reverse this ruling.
If it sounds if though I am “tooting the horn” for ACCA…well I am. ACCA has not only helped to preserve my business, the association has helped to preserve the HVAC industry.
While we are “tooting the horn,” I would like to thank Barton James and the entire ACCA staff for the excellent job they have done through this crisis. Much of the staff worked from home and some were victims of COVID–19 as well. Regardless, they managed to produce webinars, blogs, and videos, and they also stayed in tune with Congress, and kept us informed of the minute-by-minute changes going on in this industry. In addition, the ACCA staff has reached out to our affiliated contractor organizations to see how we can work more efficiently together on federal and state levels.
Truly, these are individuals that are passionate and committed to the Air Conditioning Contractors of America and to its mission.
As the summer heat and humidity sets in, I hope that business will be “unusual” great for all. I ask that you seize the opportunity to invest in the preservation of the HVAC industry. There is no better place than ACCA to do that.
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