Airborne Act: Tax Credit for Indoor Air Quality Improvements

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Airborne Act: Tax Credit for Indoor Air Quality Improvements

Representative Don Beyer (D Va.) recently introduced legislation (H.R. 7671), To amend the Internal Revenue Code of 1986 to provide a tax credit for certain indoor air quality assessments and improvements, and for other purposes (otherwise known as the 7671), that would incentivize non-residential building owners to conduct indoor air quality (IAQ) assessments and upgrade their ventilation and air filtration systems.

Specifically, the Airborne Act would:

  • Incentivize commercial building owners to conduct IAQ assessments of their properties by providing a $1 per square foot tax credit, not to exceed the assessment cost.
  • Incentivize commercial building owners to upgrade HVAC/air filter systems to reach the ASHRAE Standard 62.1-2019 and a Minimum Efficiency Reporting Value (MERV) rating of 13 or better for their properties. This standard mirrors ASHRAE’s Epidemic Task Force Recommendations from October 2021 to reduce the spread of respiratory diseases like COVID-19. The tax credit for upgrades is equal to $5 per square foot of property affected for air filters and $50 per square foot for HVAC systems and is limited to 50 percent of the total project cost.As a point of comparison, upgrading to a UV-C coil maintenance/efficiency system would be roughly $0.25 per square foot.
  • Create a Department of Energy and Environmental Protection Agency voluntary certification program for property owners to certify that their properties comply with IAQ standards outlined above.

Eligible recipients also include non-profits, and for certain public properties, the credit is transferable to the appropriate private entity carrying out the upgrade.

The legislation is co-sponsored by Representatives Jerrold Nadler (D N.Y.), Thomas Suozzi (D N.Y.), and Lisa Blunt Rochester (D Del.).

The full text of the Airborne Act is available HERE.