NADCA Urges Members to Take Action as Tax Reform Threatens Trade Associations

Posted on 05/30/2025

In January, NADCA joined the ASAE Community Impact Coalition to protect nonprofit organizations like ours from harmful legislative proposals that would threaten the very structure of how we operate and serve our members.

Now, just months later, that threat is real and urgent.

On May 22, 2025, the U.S. House of Representatives passed a tax reform package known as the “One Big Beautiful Bill Act.” While the bill still awaits debate and possible revisions in the Senate, several provisions would impose significant new burdens on 501(c) organizations, including NADCA.

What This Means for NADCA Members

If these tax changes move forward, the impact on NADCA and YOU, our members, could be significant:

  • New Taxes on Common Operations:
    Provisions expanding the Unrelated Business Income Tax (UBIT) would target things like transportation benefits and royalties from logo use, typical activities for associations. These taxes would divert funds away from certifications, training programs, and educational resources.
     
  • Risk to Tax-Exempt Status:
    A proposed provision gives the Treasury Secretary unilateral authority to revoke 501(c)(3) status under loosely defined conditions. While NADCA is a 501(c)(6), this sets a concerning precedent for how all nonprofit statuses may be treated.
     
  • A Shift in How Nonprofits Are Viewed:
    An increased tax burden on private foundations signals a broader shift toward treating nonprofit organizations as taxable entities, which could eventually affect associations like NADCA.
     

Put simply… this bill could force us to do more with less, and that means fewer resources to support your business, raise awareness about indoor air quality, and protect the integrity of the HVAC cleaning industry.

As a nonprofit trade association, every dollar NADCA brings in is reinvested back into our members through certification, standards development, training, marketing support, and industry advocacy.

Removing or diminishing nonprofit tax protections threatens to:

  • Increase the cost of certifications and membership programs
     
  • Limit funding for safety and public education initiatives
     
  • Undermine NADCA’s ability to advocate for the HVAC cleaning profession
     
  • Slow our momentum in educating consumers through initiatives like Breathing Clean
     

We joined the Community Impact Coalition to ensure these risks are not overlooked as tax legislation is crafted, and now we need your help.

What You Can Do Right Now

The Senate is now reviewing the House bill and developing its own version. There’s still time to influence the outcome, but the next few weeks are critical.

Fill out this form to contact your members of Congress. Ask them to protect nonprofit organizations and associations from harmful tax increases and preserve our ability to serve members and communities.

Share this message with colleagues, friends, and peers in the HVAC industry. The more voices lawmakers hear, the stronger our impact.

NADCA will continue to advocate on your behalf, but your voice matters just as much. Let’s protect the strength of our profession and the communities we serve. Together.