by Brianna Crandall — May 3, 2017 — The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) last week welcomed President Trump’s effort to reform the nation’s tax system, which has not been significantly reformed since the Reagan Administration.
AHRI President and CEO Stephen Yurek stated:
We are encouraged by the President’s willingness to work with Congress to make needed reforms to our tax system. We look forward to working with the Administration and Congress on ways to improve the current system and spur economic growth by allowing companies to expense the full cost of capital equipment in the tax year purchased, or at least reduce the depreciation period to be more aligned with the useful life of our equipment.
The current depreciation period for capital HVACR and water heating equipment is set at 39 years in the tax code, in some cases more than double its useful life, points out AHRI. Reducing that depreciation period or, better yet, allowing for full expensing in the first year, will encourage the purchase of new, more efficient, more environmentally friendly equipment that will lower costs for businesses and create jobs.
Economic growth can also be spurred — and jobs created — by bringing the corporate tax rate more in line with those of other industrialized nations. Reducing the top rate would promote economic growth, allow U.S. companies to more effectively compete in the global marketplace, and attract foreign investment to the U.S.
Learn more about tax reform issues and AHRI’s policy views and resources on the organization’s Web site.