Breaking News from ACCA Government Affairs:
House Passes EESA, Includes Key HVACR Provisions;
Bush Will Sign Into Law
October 3, 2008

Today the US House passed the Emergency Economic Stabilization Act (EESA) that will shore up the frozen credit system and extend key HVACR tax incentives. President Bush has pledged to sign the bill into law.

Enactment of EESA will forestall the pending credit crunch that threatens America's already flagging economy. It will allow the US Treasury to unclog the financial system by clearing the most "toxic" assets being held by banks and other lending institutions. As a result, more funds will be available for lending to small businesses that need to make payrolls, purchase inventory, and address short term emergencies.

Included in the EESA were key HVACR tax incentives for homeowners and businesses:

• An extension of the $500 homeowner's energy tax credit for the installation of high efficiency furnaces, central air conditioners and heat pumps, hot water heaters, and more for the year 2009.

• An extension of the Commercial Building Tax Deduction until 2013 that allows building owners to deduct up to $1.80 per square foot for improvements in overall performance.

• A one year extension, until December 31, 2009, of the $2000 homebuilders tax credit for the installation of high efficiency appliances, including HVAC, in new homes.

• A new $2,000 tax credit for homeowners that install geothermal heat pumps until 2016.