H.R. 7460: Airborne Act of 2026

The Airborne Act of 2026 seeks to enhance indoor air quality through financial incentives provided to property owners who assess and improve their indoor environments. Key aspects of the bill include:

Indoor Air Quality Credit

The proposed legislation introduces a tax credit for certain expenditures related to indoor air quality. The credit is applicable for:

• Qualified Indoor Air Quality Assessments: A credit of $1 per square foot of property assessed.
• Qualified Air Cleaning System Upgrades: A credit of $5 per square foot for upgrades to air cleaning systems.
• Qualified HVAC Upgrades: A credit of $50 per square foot for new heating, ventilation, and air conditioning system installations or upgrades.

If the installations comply with prevailing wage and apprenticeship requirements, the credit amounts increase significantly:

• Up to $25 per square foot for qualified air cleaning upgrades.
• Up to $250 per square foot for qualified HVAC upgrades.

Definition of Key Terms

Several terms are crucial to understanding the bill's provisions:

• Air Cleaning System: Any device that reduces air contaminants.
• Qualified Indoor Air Quality Assessment: An evaluation of air quality meeting established standards.
• Qualified Air Cleaning System Upgrade: Adds or modifies an air cleaning system to meet specific performance certifications.
• Qualified HVAC Upgrade: Involves new or modified HVAC systems that comply with designated standards.
• Qualifying Property: Commercial, public properties, or properties owned by tax-exempt organizations.

Certification Standards

The bill mandates the Secretary of Energy, in collaboration with the Environmental Protection Agency, to develop regulations for:

• Conducting qualified indoor air quality assessments.
• Certifying air cleaning system upgrades.
• Certifying HVAC upgrades.

Limitations and Regulations

The bill specifies some limitations on the credits offered:

• The indoor air quality credit cannot exceed 50% of the total expenses for air cleaning or HVAC upgrades.
• The credit for indoor air quality assessments is limited to the actual amounts paid for those assessments.

Moreover, any amount taken into account for calculating this credit cannot double for other deductions, ensuring a single benefit for each expenditure.

Credits for Improvements on Public Property

In cases where improvements are made on public property or properties owned by tax-exempt organizations, the bill allows the credit to be allocated to the designer responsible for the property.

Effective Date

The provisions of this bill are set to take effect for amounts paid or incurred after December 31, 2026, for taxable years ending after this date.

Indoor Air Quality Certification

Within one year of the bill’s enactment, a voluntary certification program will be established, allowing property owners to certify compliance with the new indoor air quality standards.

Relevant Companies

• HEAR - This company may face increased demand for air cleaning systems and HVAC upgrades as property owners seek to comply with the new regulations.
• FLT - A company involved in HVAC systems could see changes in business as properties upgrade their systems to meet compliance standards.