[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4317 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4317
To amend the Internal Revenue Code of 1986 to extend and expand the new
energy efficient home credit, to extend the energy efficient commercial
buildings deduction, to eliminate the basis reduction for low-income
housing properties receiving certain energy benefits, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 12, 2019
Mr. Langevin (for himself and Mr. Welch) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend and expand the new
energy efficient home credit, to extend the energy efficient commercial
buildings deduction, to eliminate the basis reduction for low-income
housing properties receiving certain energy benefits, 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 ``Building Efficiently Act of 2019''.
SEC. 2. EXTENSION AND EXPANSION OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) Extension of Credit.--Section 45L(g) of the Internal Revenue
Code of 1986 is amended by striking ``December 31, 2017'' and inserting
``December 31, 2020''.
(b) Credit for Qualified Energy Efficient Rental Property.--
Paragraph (2) of section 45L(a) of such Code is amended by striking
``and'' at the end of subparagraph (A), by striking the period at the
end of subparagraph (B) and inserting ``, and'', and by adding at the
end the following:
``(C) in lieu of subparagraphs (A) and (B), in the
case of qualified new energy efficient home that is a
qualified energy efficient residential rental property,
3.3 percent of the cost of construction of such
property, reduced by any expenditure not taken into
account under this section by reason of subsection
(f).''.
(c) Qualified Energy Efficient Residential Rental Property
Defined.--Subsection (b) of section 45L of such Code is amended by
adding at the end the following:
``(5) Qualified energy efficient residential rental
property.--
``(A) In general.--The term `qualified energy
efficient residential real property' means a building
which is residential rental property which is described
in subparagraph (B), (C), or (D).
``(B) New or reconstructed building.--A building is
described in this subparagraph if--
``(i) the certification requirements of
subparagraph (E) with respect to the building
are met,
``(ii) the original use of which commences
with the taxpayer, and
``(iii) the building is placed in service
after the date of the enactment of the Building
Efficiently Act of 2019.
``(C) Improvements to existing building.--A
building is described in this subparagraph if, only
after improvements are made to the building--
``(i) the certification requirements of
subparagraph (E) with respect to the building
are met,
``(ii) the original use of the improved
building commences with the taxpayer,
``(iii) the improved building is placed in
service after the date of the enactment of the
Building Efficiently Act of 2019, and
``(iv) the taxpayer elects to the
application of this paragraph with respect to
the building.
``(D) Buildings acquired by purchase.--A building
is described in this subparagraph if the building--
``(i) is acquired by purchase from an
unrelated person,
``(ii) meets the certification requirements
of subparagraph (E), and
``(iii) is placed in service after the date
of the enactment of the Building Efficiently
Act of 2019.
``(E) Certification requirements.--The requirements
of this subparagraph are met if, with respect to a
building, the building is certified in accordance with
subsection (d) as being constructed, reconstructed, or
retrofitted, as the case may be, under a plan designed
to reduce energy and power consumption of the building
by 40 percent or more in comparison to--
``(i) in the case of retrofits made to an
existing building, the baseline annual energy
and power consumption of the building, or
``(ii) in any other case, a reference
building which meets the minimum requirements
of the International Energy Conservation Code
2018 using methods of calculation under
subsection (d).
``(F) Baseline annual energy and power
consumption.--The baseline annual energy and power
consumption of any building shall be determined by
using--
``(i) a building energy performance
benchmarking tool designated for purposes of
this paragraph by the Administrator of the
Environmental Protection Agency, which is based
upon energy and power consumption data during
the 1-year period ending on the date on which
retrofits under the plan are placed in service,
or
``(ii) such other methods of calculation as
certified by the Secretary in accordance with
subsection (d).
``(G) Related persons.--For purposes of
subparagraph (D), a person is related to another person
if--
``(i) the persons are members of an
affiliated group (as defined in section 1504),
or
``(ii) the persons have a relationship
described in subsection (b) of section 267;
except that, for purposes of this clause, the
phrase `80 percent or more' shall be
substituted for the phrase `more than 50
percent' each place it appears in such
subsection and rules similar to the rules of
subsections (c) and (e) (other than paragraphs
(4) and (5) thereof) shall apply.''.
(d) Conforming Amendment.--Section 45L(d) is amended by striking
``subsection (c)'' both places it appears and inserting ``subsection
(b)(5) or (c)''.
(e) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to property placed in service after December 31, 2017.
(2) Qualified energy efficient rental property.--The
amendments made by subsections (b), (c), and (d) shall apply to
property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 3. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) In General.--Section 179D(h) of the Internal Revenue Code of
1986 is amended by striking ``December 31, 2017'' and inserting
``December 31, 2020''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2017.
SEC. 4. ELIMINATION OF BASIS REDUCTION FOR LOW-INCOME HOUSING
PROPERTIES RECEIVING CERTAIN ENERGY BENEFITS.
(a) New Energy Efficient Home Credit.--Subsection (e) of section
45L of the Internal Revenue Code of 1986 is amended--
(1) by striking ``Adjustment.--For purposes'' and inserting
``Adjustment.--
``(1) In general.--For purposes''; and
(2) by adding at the end the following new paragraph:
``(2) Exception for low-income housing properties.--
Paragraph (1) shall not apply to any property with respect to
which a credit is allowed under section 42.''.
(b) Energy Efficient Commercial Buildings Deduction.--Subsection
(e) of section 179D of the Internal Revenue Code of 1986 is amended--
(1) by striking ``Reduction.--For purposes'' and inserting
``Reduction.--
``(1) In general.--For purposes''; and
(2) by adding at the end the following new paragraph:
``(2) Exception for low-income housing properties.--
Paragraph (1) shall not apply to any property with respect to
which a credit is allowed under section 42.''.
(c) Energy Credit.--Paragraph (3) of section 50(c) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``, and''; and
(3) by adding at the end the following new subparagraph:
``(C) paragraph (1) shall not apply to any property
with respect to which a credit is allowed under section
42.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
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