New tax credits target indoor air quality upgrades in commercial buildings

What does this do?

This bill creates a federal tax credit for improving indoor air quality in commercial, government, and nonprofit buildings. Credits range from $1 per square foot for an air quality assessment up to $50 per square foot for an HVAC upgrade, with higher amounts available if the work meets federal wage and apprenticeship rules. Any air cleaning or HVAC upgrade must be professionally certified and must follow an assessment first. The bill also directs the Department of Energy to create a voluntary certification program for buildings that meet the required air quality standards.

Who does it affect?

Owners of commercial properties, government-owned buildings, and 501(c)(3) nonprofit organizations may claim the credit. The Department of Energy is directed to set up the voluntary certification program.

Why does it matter?

Tax credits reduce what a qualifying property owner owes in federal taxes. Meeting the higher credit amounts requires following federal prevailing wage and apprenticeship standards during installation work.

What does it cost, and who pays?

• Upgrade credits capped at 50% of costs
• Assessment credits capped at actual cost