Airborne Act of 2026

Bill Number

H.R. 7460

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-02-10: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-10T08:08:05Z

AI-Generated Summary

Purpose of the Legislation

The Airborne Act of 2026 aims to encourage improvements in indoor air quality in commercial, public, and certain nonprofit buildings by providing tax incentives. It amends the Internal Revenue Code (IRC) of 1986 to offer credits for assessing air quality and upgrading systems that filter or circulate air, helping to reduce contaminants like pollutants or germs.

Key Provisions

• Tax Credit Structure (Section 45BB): Introduces a new "Indoor Air Quality Credit" as part of the general business credit under IRC Section 38. The credit covers:
• Qualified indoor air quality assessments: $1 per square foot of the affected property.
• Qualified air cleaning system upgrades (e.g., new filters or cleaners that remove or neutralize air contaminants): $5 per square foot, increased to $25 if the work meets prevailing wage (fair pay standards set by the government) and apprenticeship requirements (at least 15% of labor hours by qualified apprentices, following Department of Labor rules).
• Qualified heating, ventilation, and air conditioning (HVAC) upgrades (e.g., new or repaired systems): $50 per square foot, increased to $250 if prevailing wage and apprenticeship rules are met.
• Qualification Requirements:
• Assessments must follow standards set by the Treasury Secretary, in consultation with the Department of Energy (DOE) or Environmental Protection Agency (EPA).
• Upgrades must be installed after enactment in properties that have had a qualified assessment, certified to meet ASHRAE standards (industry guidelines for ventilation and air quality, specifically Standard 62.1-2022 for general air quality or Standard 241-2023 for reducing infection risks). They must also prioritize energy-efficient methods when cost-effective.
• Qualifying properties include commercial buildings, public buildings (e.g., government-owned), or those owned by tax-exempt nonprofits under IRC Section 501(c)(3).
• Limitations and Rules:
• Credit for upgrades is capped at 50% of total costs spent in a tax year.
• Full credit allowed for assessment costs, up to amounts paid.
• For public or nonprofit properties, credits can be allocated to the designer or primary installer, treating them as the taxpayer.
• The property's tax basis (its value for tax purposes) is reduced by the credit amount, and no double benefits (e.g., deductions) are allowed for the same expenses.
• Certification Program (Section 3): Within one year of enactment, the DOE, with EPA input, must create a voluntary program for property owners to certify compliance with the air quality standards, aiding in credit qualification.
• Effective Date: Applies to costs paid or incurred after December 31, 2026, for tax years ending after that date.

Significant Changes to Existing Law

• Adds a new IRC Section 45BB for this credit, integrating it into the list of general business credits (amending IRC Section 38(b)).
• Introduces specific incentives tied to air quality standards and labor requirements, which were not previously available in the IRC for these purposes.
• Incorporates rules similar to existing energy efficiency credits (e.g., IRC Section 179D for prevailing wages), extending them to air quality improvements.
• Requires new regulatory standards from the Treasury, DOE, and EPA for assessments and certifications, creating a framework absent in prior law.

Potential Impacts

• On Government Agencies: The IRS will administer the credits, potentially increasing workload for audits and claims. DOE and EPA will develop standards and a certification program, promoting collaboration on public health and energy efficiency. Local governments may see indirect benefits from improved air quality in public buildings.
• On Citizens: Building occupants (e.g., workers, students, or visitors in commercial/public spaces) could benefit from healthier indoor environments, reducing risks from poor air quality like allergies or infections. Taxpayers funding these via credits may see minimal direct cost increases, as it's a targeted incentive.
• On International Relations: Minimal direct impact, though adoption of U.S. standards (e.g., ASHRAE) could influence global building practices or encourage similar policies abroad for health and energy goals.

Main Stakeholders Affected

• Property Owners and Managers: Commercial, public, and nonprofit entities eligible for credits to offset assessment and upgrade costs.
• Contractors and Workers: Benefit from higher credits tied to prevailing wages and apprenticeships, potentially increasing jobs in HVAC and air cleaning installation.
• Taxpayers and Businesses: Eligible for credits if they own or design qualifying properties, with flow-through benefits to employees or users.
• Government and Nonprofits: Public entities and 501(c)(3) organizations can allocate credits, easing upgrades in schools, offices, or hospitals.
• Regulatory Bodies: Treasury/IRS for tax rules; DOE/EPA for standards and certification.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes enforceable standards for certifications and labor compliance, potentially leading to disputes over ASHRAE adherence or credit eligibility. The basis reduction and double-benefit denial align with standard tax principles to prevent abuse.
• Constitutional: No apparent challenges; it uses Congress's taxing and spending powers under Article I to incentivize private action for public health, similar to energy tax credits.
• Political: Promotes bipartisan goals of health (post-pandemic air quality focus), energy efficiency, and workforce development (apprenticeships). Could face debate over costs to federal revenue (estimated credit uptake) or scope limited to commercial/public properties, excluding homes.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Beyer, Donald S. [D-VA-8]

Cosponsors (7)

Rep. Fitzpatrick, Brian K. [R-PA-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Riley, Josh [D-NY-19], Rep. Levin, Mike [D-CA-49], Rep. Neguse, Joe [D-CO-2], Rep. Peters, Scott H. [D-CA-50], Rep. Norcross, Donald [D-NJ-1]

Recent Actions

• 2026-02-10: Referred to the House Committee on Ways and Means.
• 2026-02-10: Introduced in House
• 2026-02-10: Introduced in House

Bill Versions

• Airborne Act of 2026 — issued 2026-02-10 — PDF (10 pages)