The bill was brought to life in the House of Representatives on July 11, 2024, by Congressman Beyer and tossed to the Ways and Means Committee for a closer look. But what exactly does this act entail, and why does it matter to the everyday person clocking in hours in offices, browsing through public libraries, or shopping at their local retail store?
To put it simply, the Airborne Act of 2024 aims to lessen the respiratory risks posed by indoor environments. It proposes to make amendments to the Internal Revenue Code of 1986, introducing a tax credit targeting key improvements in indoor air quality. The credit can be broken down into three main components: assessments, air filter upgrades, and HVAC system upgrades, each coming with its own slice of financial incentive.
First up, the credit covers indoor air quality assessments, paying out a dollar per square foot of property checked under prescribed standards. Given the rise of health concerns linked to poor air circulation and contaminants, this initial step hopes to identify problem areas in commercial and public buildings. Essentially, this gives building owners potent motivation to assess the state of their ventilation.
Then we move on to the meatier parts: the actual upgrades. Qualifying air filter upgrades can nab a cool $5 per square foot, while heftier HVAC system overhauls can bring in an impressive $50 per square foot. However, it’s not just any upgrade that makes the cut. These improvements must adhere to specific benchmarks set out by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 62.1-2022. That means new air filters should achieve a Minimum Efficiency Reporting Value (MERV) rating of 13 or better, ensuring a solid defense against indoor air contaminants. Meanwhile, new or repaired HVAC systems need to meet strong energy efficiency and performance standards, balancing air quality against ventilation energy use.
The aim here is straightforward but ambitious: to see that public and commercial buildings become fortresses against poor air quality. The bill addresses spaces from office settings to nonprofit organizations’ buildings. While these organizations would not directly benefit from tax credits themselves, the act provides a workaround: design professionals—think architects and engineering firms—who oversee such upgrades can claim the credit, indirectly propelling the changes necessary for healthier environments.
The legislation lays out uniform criteria for these upgrades and assessments, ensuring that the credits claimable are in alignment with solid, scientifically backed standards. The Secretary of Energy, in league with the Environmental Protection Agency Administrator, gets the job of putting these standards into fine print, making them clear to every property owner and assessor within 365 days of the enactment.
Now, here’s where it gets really interesting: despite the allure of reducing one’s tax burden through these credits, there’s a stopping point. The bill caps the credit at 50% of the costs expended by a taxpayer within a year for the upgrades, maintaining a balance between incentivizing improvements and preventing excessive tax claims. Also, the credit amount is taken right off the baseline property value calculation, adhering to the rigorous principle that no one can double-dip—no deductions can be claimed on the expenses covered by this credit.
Peeling back another layer, we’re reminded that the bill is more than just about doling out credits. It proposes a federal-backed certification program enabling property owners to flaunt their compliance with the indoor air quality standards laid out. This gives a badge of honor to those who step up to ensure clean, breathable air inside their walls, marking a path for others to follow.
But why does all of this matter to the average person? Remember those long, weary days spent in offices, schools, or even gyms? Breathing easy—and safe—could soon become a standard part of public and work life, reducing health risks associated with poor air quality. More robust air filtration and HVAC systems mean cleaner recirculated air, potentially curbing the spread of airborne diseases.
Yes, the average taxpayer might not see these changes blazing into effect immediately. The amendments will kick in for amounts paid or incurred after December 31, 2024, impacting taxable years ending beyond this date. While the pathway ahead involves a comprehensive rollout, consultations, and precise regulatory detailing, the destination is clearer air for all.
In short, the Airborne Act of 2024 brings together tax policy and public health in a bid to refresh indoor environments across America’s commercial and public buildings. It spells out a future where standing in line at the DMV or grabbing a coffee at the office comes with peace of mind about the air you’re breathing. Cheers to that.
