While Congress tries to hash out which tax reform proposal, if any, becomes law, one HVAC group says the U.S. House’s first try falls short.

Officials with the Air Conditioning Contractors of America said that while it has some good points, some provisions could result in higher tax bills for members.

“Contractors should be pleased with some of the business-friendly tax proposals announced in the House of Representatives, but there remains work to be done in support of America’s HVAC contractors,” said Bart James, the association’s senior vice president of government relations. “Several of ACCA’s legislative priorities are being incorporated in this tax reform package, including provisions of the HEAT Act and a repeal of the estate tax. However, ACCA continues to fight for a lower pass-through rate than the proposed 25 percent and for the inclusion of the geothermal tax credit.”

Dan Weis, chairman of ACCA's Government Relations Committee and vice president at Weis Comfort Systems, said the legislation is flawed.

“Unfortunately, in its current form this bill leaves too many ACCA members behind when it comes to the pass-through rate,” he said. “This legislation will result in higher taxes for many pass through businesses because it would the treat income of hundreds of thousands of pass through businesses as wages and subject them to rates nearly 20 percent higher than the rate applied to corporate profits. ACCA members, and the entire small business community, are the true drivers of our U.S. economy. The final tax reform proposal must provide substantial relief for small business -- not just corporate America. We look forward to working with Congress to ensure we have a final product America’s HVACR contractors can be proud to support, one that will truly drive job creation.”