[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2346 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2346
To amend the Internal Revenue Code of 1986 to allow 10-year straight
line depreciation for energy efficient qualified improvement property,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2021
Mr. Schneider (for himself and Mr. Rice of South Carolina) 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 allow 10-year straight
line depreciation for energy efficient qualified improvement property,
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 ``Energy Efficient Qualified
Improvement Property Act of 2021'' or the ``E-QUIP Act''.
SEC. 2. DEPRECIATION OF ENERGY EFFICIENT QUALIFIED IMPROVEMENT
PROPERTY.
(a) 10-Year Property.--Section 168(e)(3)(D) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of clause (iii),
by striking the period at the end of clause (iv) and inserting ``,
and'', and by adding at the end the following new clause:
``(vi) energy efficient qualified
improvement property.''.
(b) Straight Line Method.--Section 168(b)(3) of such Code is
amended by adding at the end the following new subparagraph:
``(H) Energy efficient qualified improvement
property described in subsection (e)(7).''.
(c) Energy Efficient Qualified Improvement Property Defined.--
Section 168(e) of such Code is amended by adding at the end the
following new paragraph:
``(7) Energy efficient qualified improvement property.--
``(A) In general.--The term `energy efficient
qualified improvement property' means any improvement--
``(i) to a building which is nonresidential
real property, or multifamily residential
rental property, first placed in service more
than 10 years before the date of the enactment
of this subparagraph,
``(ii) which is installed as part of--
``(I) the lighting system,
``(II) the heating, cooling,
ventilation, or hot water systems, or
``(III) the building envelope,
``(iii) which meets the performance
requirements of subparagraph (B),
``(iv) which, in the case of an improvement
described in subclause (I) or (II) of clause
(ii)--
``(I) is audited, commissioned, or
managed by a professional with a
credential that is recognized by the
Department of Energy through its Better
Buildings Workforce Guidelines, or such
other credential programs identified by
the Secretary of Energy (following an
opportunity for, and consideration of,
public input), and
``(II) is subject to an ongoing
operations and maintenance plan under
such certification during the
applicable recovery period,
``(v) which, in the case of an improvement
described in clause (ii)(III), the design and
installation has been completed, observed, or
approved by an individual qualified by
industry-recognized professional credential
programs in building envelope quality
assurance, as identified by the Secretary of
Energy (following an opportunity for, and
consideration of, public input),
``(vi) which is placed in service before
January 1, 2026, and
``(vii) with respect to which the taxpayer
elects the application of this subparagraph.
``(B) Performance requirements.--An improvement
meets the performance requirements of this subparagraph
if--
``(i) in the case of lighting, it meets the
lighting power allowances, densities, and
control specifications in the prescriptive
option of the International Green Construction
Code (2018),
``(ii) in the case of a unitary air-cooled
air conditioner, it meets or exceeds Consortium
for Energy Efficiency Tier 2, as in effect on
January 1, 2019,
``(iii) in the case of a unitary water-
cooled and evaporatively cooled air
conditioner, it meets or exceeds Consortium for
Energy Efficiency Tier 1, as in effect on
January 1, 2019,
``(iv) in the case of a unitary heat pump--
``(I) with a capacity of less than
65,000 Btu per hour, it meets or
exceeds Consortium for Energy
Efficiency Tier 2, as in effect on
January 1, 2019, or
``(II) with a capacity of 65,000
Btu per hour or greater, it meets or
exceeds Consortium of Energy Efficiency
Tier 1, as in effect on January 1,
2019,
``(v) in the case of a variable refrigerant
flow multisplit air conditioner or variable
refrigerant flow multisplit heat pump--
``(I) with a capacity of less than
65,000 Btu per hour, it meets or
exceeds Consortium for Energy
Efficiency Tier 2, as in effect on
January 12, 2016, or
``(II) with a capacity of 65,000
Btu per hour or greater, it meets or
exceeds Consortium of Energy Efficiency
Tier 1, as in effect on January 12,
2016,
``(vi) in the case of a boiler, it meets or
exceeds Consortium for Energy Efficiency Tier
1, as in effect on September 1, 2015,
``(vii) in the case of a hot water heater--
``(I) that is gas-fired, it meets
or exceeds Consortium of Energy
Efficiency Tier 1, as in effect on June
5, 2012, or
``(II) that runs on electricity, it
has a Coefficient of Performance of 3
or more,
``(viii) in the case of a water-cooled
centrifugal chiller package, it meets the
prescriptive option of the International Green
Construction Code (2018),
``(ix) in the case of insulation for
heating and cooling supply and return ducts, it
meets the prescriptive option for duct
insulation of the International Green
Construction Code (2018) and its applicable
Normative Appendix,
``(x) in the case of roofing, walls, and
associated insulation, it meets the
prescriptive option for building envelope
opaque elements of the International Green
Construction Code (2018) and its applicable
Normative Appendix,
``(xi) in the case of piping insulation, it
meets the prescriptive option for piping
insulation of ANSI/ASHRAE/IES Standard 90.1-
2019,
``(xii) in the case of windows, doors, and
skylights, they meet the prescriptive option
for building envelope fenestration and
skylights of the International Green
Construction Code (2018) and its applicable
Informative Appendix,
``(xiii) in the case of sensors and
controls, it is a device that automatically
controls the operation of other qualified
equipment without manual operation of a switch,
using technology such as motion or occupancy
detection, infrared, ultrasonic, microwave,
audio-based, image-processing, temperature,
humidity, time-scheduling, bi-level, or demand-
response, and
``(xiv) in the case of a variable speed or
frequency drive, it is a drive--
``(I) added to adjust the speed and
torque of an operational motor that
powers pump, fan, exhaust, ventilation,
air-handling, or compressor equipment,
and
``(II) controlled automatically by
a building automation system, process
control system, or local controller
driven by differential pressure flow,
temperature or another variable signal.
``(C) Updating of performance standards.--The most
recent version of each performance standard described
in subparagraph (B) shall be affirmed by the Secretary
(after consultation with the Secretary of Energy) and
shall apply with respect to any property for purposes
of this paragraph not later than the date that is 2
years before the date that the improvement to such
property begins.''.
(d) Alternative Depreciation System.--The table in section
168(g)(3)(B) of such Code is amended by inserting after the item
relating to subparagraph (D)(v) the following new item:
``(D)(vi).......................................... 10''.
(e) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2020.
SEC. 3. REPORT RELATING TO DEPRECIATION OF ENERGY EFFICIENT QUALIFIED
IMPROVEMENT PROPERTY.
(a) In General.--Not later than 30 days after the date that is 3
years after the date of the enactment of this Act, the Secretary of the
Treasury, in consultation with the Secretary of Energy, shall submit to
Congress a report on energy efficient qualified improvement property
(as defined in section 168(e)(7) of the Internal Revenue Code of 1986).
(b) Contents.--Such report shall include the following:
(1) The number of times over such 3-year period energy
efficient qualified improvement property was placed in service
and treated as 10-year property under section 168(e)(3)(D) of
such Code.
(2) A summary of the types of such energy efficient
qualified improvement property placed in service during such
period.
(3) An estimate of the energy use savings, and reduction in
greenhouse gas emissions, attributable to such property.
(4) An estimate of the number of jobs created which are
attributable to the enactment of the Energy Efficient Qualified
Improvement Property Act of 2020.
(5) Any recommendations for updated efficiency requirements
for energy efficient qualified improvement property or rules
for the depreciation thereof.
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