Sponsors (4)
The bill offers substantial tax incentives and a federal certification pathway to accelerate indoor air quality upgrades and support construction jobs, but does so with compliance requirements, phased timing, and tax‑basis adjustments that raise costs, administrative burdens, and future tax considerations for property owners.
Owners of commercial, public, and 501(c)(3) properties can claim sizable per-square-foot tax credits (up to roughly $50–$250/sq ft for HVAC and $5–$25/sq ft for air‑cleaning when prevailing‑wage/apprenticeship rules are met) to offset upgrade costs.
Buildings upgraded under the program must meet certified ASHRAE indoor air quality standards, which will likely improve occupant health and comfort in workplaces, schools, hospitals, and other public buildings.
Higher credit amounts tied to prevailing‑wage and apprenticeship rules create a financial incentive to hire registered apprentices and pay prevailing wages, supporting construction job training and higher compensation.
Taxpayers who claim the credit must reduce the property's tax basis and cannot deduct amounts counted toward the credit, which can increase taxable gains later and raise future tax bills.
The 50% annual cap on credits for upgrades means many owners will still be responsible for roughly half the upgrade cost in the first year, limiting immediate financial relief.
Prevailing‑wage and apprenticeship documentation and compliance add administrative burden and can raise project labor costs or cause delays, disproportionately affecting smaller owners.
Based on analysis of 3 sections of legislative text.
Introduced February 10, 2026 by Donald Sternoff Beyer · Last progress February 10, 2026
Creates a new federal tax credit to pay for indoor air quality work on nonresidential and tax-exempt properties: assessments, air-cleaning system upgrades, and HVAC upgrades. The credit sets fixed per-square-foot amounts, increases those amounts if projects meet prevailing wage and apprentice rules, requires upgrades to meet recent ASHRAE indoor air quality standards, and directs Treasury (with Energy/EPA input) to write certification rules. Also requires the Department of Energy, working with the EPA, to launch a voluntary certification program so property owners can certify that their buildings meet the indoor air quality standards tied to the tax credit. The credit applies to work paid or incurred after December 31, 2026, and credits reduce the tax basis of the property and cannot be double-deducted.