New Bill Signals Support for HVAC and Energy Efficiency Incentives in Congress

This week, Rep. Brian Fitzpatrick (R-PA), a member of the House Ways & Means Committee, introduced the American Energy Dominance Act. The legislation is aimed at restoring and extending key energy efficiency tax incentives, including provisions critical to the HVAC industry.

While the bill faces long odds in the current policy environment in Congress, its introduction sends a strong message of meaningful Republican support for policies that incentivize energy efficiency, including HVAC-related upgrades.

What Would the American Energy Dominance Act Do?

At the center of the bill is a fix to the 179D Energy Efficient Commercial Buildings Deduction, which would effectively restore 179D as a long-term incentive. For HVAC stakeholders, this is particularly significant, as 179D has historically played a major role in driving investment in high-efficiency commercial building systems.

Beyond 179D, the bill also proposes:

• Extending the 45L New Energy Efficient Home Credit through 2032

• Pushing the construction deadline for the 45V Clean Hydrogen Production Credit to 2033

• Preserving long-term certainty for the 45Y and 48E clean electricity credits

Importantly, the legislation is backed by several Republican cosponsors, including Reps. Mike Lawler (NY), Max Miller (OH), and Mike Carey (OH), with Miller and Carey also serving on the Ways & Means committee. The bill’s provisions aim to provide policy stability that developers, contractors, and manufacturers rely on when planning large-scale projects.

Reflecting Broader Industry Alignment

Industry and labor voices are also aligned. The North America’s Building Trades Unions (NABTU), which partnered on the legislation, highlighted its role in supporting jobs and advancing an “all-of-the-above” energy strategy.

While the path forward for this legislation is uncertain, the messaging is clear. There is notable Republican recognition of the value that HVAC and broader energy efficiency incentives bring to affordability, energy security, and economic growth.

Questions?

If you have questions, please reach out to Alex Ayers.

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