Airborne Act
Bill: H.R.7671 | Sponsor: Rep. Beyer, Donald S., Jr. (D-VA)
Policy area: Taxation

Summary:
Airborne Act
This bill allows owners of commercial or public properties a tax credit for the cost of an indoor air quality assessment and an air filter or qualified HVAC upgrade to such properties. The bill also directs the Department of Energy to establish a voluntary certification program for property owners to certify that their properties are in compliance with the indoor air quality standards added by this bill.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Airborne Act''.

SEC. 2. INDOOR AIR QUALITY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. INDOOR AIR QUALITY CREDIT.

    ``(a) Allowance of Credit.--
            ``(1) In general.--For purposes of section 38, the indoor 
        air quality credit determined under this section for the 
        taxable year is an amount equal to the sum of--
                    ``(A) the applicable amount paid or incurred during 
                such taxable year for a qualified indoor air quality 
                assessment of a qualifying property, plus
                    ``(B) the applicable amount with respect to any 
                qualified air filter upgrade or qualified HVAC upgrade 
                placed in service at such qualifying property during 
                such taxable year.
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is--
                    ``(A) in the case of a qualified indoor air quality 
                assessment, $1 per square foot of property affected by 
                such upgrade,
                    ``(B) in the case of a qualified air filter 
                upgrade, $5 per square foot of property affected by 
                such upgrade, and
                    ``(C) in the case of a qualified HVAC upgrade, $50 
                per square foot of property affected by such upgrade.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified indoor air quality assessment.--The term 
        `qualified indoor air quality assessment' means an assessment 
        of air quality carried out pursuant to the standards described 
        in subsection (c)(1).
            ``(2) Qualified air filter upgrade.--The term `qualified 
        air filter upgrade' means a new air filter or an air filter 
        repair which--
                    ``(A) is placed in service after the date of the 
                enactment of this section at a commercial or public 
                property with respect to which a qualified indoor air 
                quality assessment is completed, and
                    ``(B) is certified pursuant to subsection (c)(2) to 
                bring the commercial or public property on which it is 
                installed into compliance with the American Society of 
                Heating, Refrigerating and Air-Conditioning Engineers 
                (ASHRAE) Standard 62.1-2019, along with the use of 
                filters and air cleaners that achieve a Minimum 
                Efficiency Reporting Value (MERV) rating of 13 or 
                better levels of performance for air recirculated by 
                HVAC systems per guidance provided by ASHRAE Epidemic 
                Task Force Core Recommendations of October 19, 2021.
            ``(3) Qualified hvac upgrade.--The term `qualified HVAC 
        upgrade' means a new heating, ventilation, and air conditioning 
        system (HVAC) or HVAC repair which is--
                    ``(A) placed in service after the date of the 
                enactment of this section at a commercial or public 
                property with respect to which a qualified indoor air 
                quality assessment is completed, and
                    ``(B) is certified pursuant to subsection (c)(3) to 
                bring the commercial or public property on which it is 
                installed into compliance with the American Society of 
                Heating, Refrigerating and Air-Conditioning Engineers 
                (ASHRAE) Standard 62.1-2019, along with the use of 
                filters and air cleaners that achieve a Minimum 
                Efficiency Reporting Value (MERV) rating of 13 or 
                better levels of performance for air recirculated by 
                HVAC systems per guidance provided by ASHRAE Epidemic 
                Task Force Core Recommendations of October 19, 2021.
            ``(4) Qualifying property.--The term `qualifying property' 
        means commercial property, public property, or property owned 
        by an organization described in section 501(c)(3) and exempt 
        from tax under section 501(a).
    ``(c) Indoor Air Quality Assessment and Certification Standards.--
The Secretary shall, after consultation with the Secretary of Energy or 
the Administrator of the Environmental Protection Agency, as 
appropriate, prescribe by regulations standards for--
            ``(1) carrying out qualified indoor air quality 
        assessments,
            ``(2) certifying air filter upgrades as qualified air 
        filter upgrades, and
            ``(3) certifying HVAC upgrades as qualified HVAC upgrades.
    ``(d) Limitations.--
            ``(1) Qualified hvac and qualified air filter upgrades.--
        The credit allowed under this section with respect to any 
        taxpayer for any taxable year shall not exceed 50 percent of 
        the total amount expended by the taxpayer during such taxable 
        year for qualified air filter upgrades or qualified HVAC 
        upgrades.
            ``(2) Indoor air quality assessments.--The credit allowed 
        under this section with respect to any taxpayer for any taxable 
        year with respect to qualified indoor air quality assessments 
        shall not exceed the amounts paid or incurred with respect to 
        such assessments.
    ``(e) Regulations for Allocation of Credit With Respect to 
Improvements on Public Property.--In the case of qualified indoor air 
quality assessments, qualified air filter upgrades, or qualified HVAC 
upgrades conducted on or in property owned by a Federal, State, or 
local government or a political subdivision thereof, credits with 
respect to such assessments and upgrades may be allocated, under such 
regulations as the Secretary shall prescribe, to the person primarily 
responsible for designing the property. Such person shall be treated as 
the taxpayer for purposes of this credit.
    ``(f) Reduction in Basis.--For purposes of this subtitle, the basis 
of any property for which a credit is allowable under subsection (a) 
shall be reduced by the amount of such credit so allowed.
    ``(g) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for any amount taken into account in determining the 
credit under this section.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (32), by striking the period at the end of paragraph (33) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(34) the indoor air quality credit determined under 
        section 45U.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 45U. Indoor air quality credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses made or incurred after December 31, 2021, in taxable 
years ending after such date.

SEC. 3. INDOOR AIR QUALITY CERTIFICATION.

    Not later than 365 days after the date of the enactment of this 
Act, the Secretary of Energy, in consultation with the Administrator of 
the Environmental Protection Agency, shall establish a voluntary 
certification program through which property owners may certify that 
their properties are in compliance with the indoor air quality 
standards of section 45U(c) of the Internal Revenue Code of 1986, as 
added by this Act.
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