[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5181 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 5181
To amend the Internal Revenue Code of 1986 to provide temporarily
increase the deduction for energy efficient commercial buildings, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 7, 2021
Mr. Blumenauer (for himself and Mr. Beyer) 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 provide temporarily
increase the deduction for energy efficient commercial buildings, 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 Commercial
Buildings Act of 2021''.
SEC. 2. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) Temporary Increase in Deduction, etc.--Section 179D is amended
by adding at the end the following:
``(i) Temporary Rules.--
``(1) Period of application.--The provisions of this
subsection shall apply only to taxable years beginning after
December 31, 2021, and before January 1, 2032.
``(2) Modification of efficiency standard.--Subsection
(c)(1)(D) shall be applied by substituting `25' for `50'.
``(3) Maximum amount of deduction.--
``(A) In general.--The deduction under subsection
(a) with respect to any building for any taxable year
shall not exceed the excess (if any) of--
``(i) the product of--
``(I) the applicable dollar value,
and
``(II) the square footage of the
building, over
``(ii) the aggregate amount of the
deductions under subsection (a) and paragraph
(6) with respect to the building for the 3
taxable years immediately preceding such
taxable year (or, in the case of any such
deduction allowable to a person other than the
taxpayer, for any taxable year ending during
the 4-taxable-year period ending with such
taxable year).
``(B) Applicable dollar value.--For purposes of
paragraph (3)(A)(i), the applicable dollar value shall
be an amount equal to $2.50 increased (but not above
$5.00) by $0.10 for each percentage point by which the
total annual energy and power costs for the building
are certified to be reduced by a percentage greater
than 25 percent.
``(C) Application of inflation adjustment.--
Subsection (g) shall be applied--
``(i) by substituting `2022' for `2020',
``(ii) by substituting `subsection
(i)(3)(B)' for `subsection (b) or subsection
(d)(1)(A)', and
``(iii) by substituting `2021' for `2019'.
``(D) Limitation to apply in lieu of current
limitation and partial allowance.--Subsections (b) and
(d)(1) shall not apply.
``(4) Allocation of deduction by certain tax-exempt
entities.--
``(A) In general.--A specified tax-exempt entity
shall be treated in the same manner as a Federal,
State, or local government for purposes of applying
subsection (d)(4).
``(B) Specified tax-exempt entity.--For purposes of
this paragraph, the term `specified tax-exempt entity'
means--
``(i) the United States, any State or
political subdivision thereof, any possession
of the United States, or any agency or
instrumentality of any of the foregoing,
``(ii) any Indian tribal government (within
the meaning of section 139E), and
``(iii) any organization exempt from tax
imposed by this chapter.
``(5) Alternative deduction for energy efficient retrofit
building property.--
``(A) In general.--In the case of a taxpayer which
elects (at such time and in such manner as the
Secretary may provide) the application of this
paragraph with respect to any qualified building, there
shall be allowed as a deduction for the taxable year
which includes the date of the qualifying final
certification with respect to the qualified retrofit
plan of such building, an amount equal to the lesser
of--
``(i) the excess described in paragraph (3)
(determined by substituting `energy usage
intensity' for `total annual energy and power
costs' in subparagraph (B) thereof), or
``(ii) the aggregate adjusted basis
(determined after taking into account all
adjustments with respect to such taxable year
other than the reduction under subsection (e))
of energy efficient retrofit building property
placed in service by the taxpayer pursuant to
such qualified retrofit plan.
``(B) Qualified retrofit plan.--For purposes of
this paragraph, the term `qualified retrofit plan'
means a written plan prepared by a qualified
professional which specifies modifications to a
building which, in the aggregate, are expected to
reduce such building's energy usage intensity by 25
percent or more in comparison to the baseline energy
usage intensity of such building. Such plan shall
provide for a qualified professional to--
``(i) as of any date during the 1-year
period ending on the date of the first
certification described in clause (ii), certify
the energy usage intensity of such building as
of such date,
``(ii) certify the status of property
installed pursuant to such plan as meeting the
requirements of clauses (ii) and (iii)
subparagraph (C), and
``(iii) as of any date that is more than 1
year after completion of the plan, certify the
energy usage intensity of such building as of
such date.
``(C) Energy efficient retrofit building
property.--For purposes of this paragraph, the term
`energy efficient retrofit building property' means
property--
``(i) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable,
``(ii) which is installed on or in any
qualified building,
``(iii) which is installed as part of--
``(I) the interior lighting
systems,
``(II) the heating, cooling,
ventilation, and hot water systems, or
``(III) the building envelope, and
``(iv) which is certified in accordance
with subparagraph (B)(ii) as meeting the
requirements of clauses (ii) and (iii).
``(D) Qualified building.--For purposes of this
paragraph, the term `qualified building' means any
building which--
``(i) is located in the United States, and
``(ii) was originally placed in service not
less than 5 years before the establishment of
the qualified retrofit plan with respect to
such building.
``(E) Qualifying final certification.--For purposes
of this paragraph, the term `qualifying final
certification' means, with respect to any qualified
retrofit plan, the certification described in
subparagraph (B)(iii) if the energy usage intensity
certified in such certification is not more than 75
percent of the baseline energy usage intensity of the
building.
``(F) Baseline energy usage intensity.--
``(i) In general.--The term `baseline
energy usage intensity' means the energy usage
intensity certified under subparagraph (B)(i),
as adjusted to take into account weather as
compared to the energy usage intensity
determined under subparagraph (B)(iii)(I).
``(ii) Determination of adjustment.--For
purposes of clause (i), the adjustments
described in such clause shall be determined in
such manner as the Secretary, after
consultation with the Administrator of the
Environmental Protection Agency, may provide.
``(G) Other definitions.--For purposes of this
paragraph--
``(i) Energy usage intensity.--The term
`energy usage intensity' means the site energy
usage intensity determined in accordance with
such regulations or other guidance as the
Secretary may provide and measured in British
thermal units.
``(ii) Qualified professional.--The term
`qualified professional' means an individual
who is a licenced architect or a licenced
engineer and meets such other requirements as
the Secretary may provide.
``(H) Coordination with deduction otherwise allowed
under subsection (a).--
``(i) In general.--In the case of any
building with respect to which an election is
made under subparagraph (A), the term `energy
efficient commercial building property' shall
not include any energy efficient retrofit
building property with respect to which a
deduction is allowable under this paragraph.
``(ii) Certain rules not applicable.--
``(I) In general.--Except as
provided in subclause (II), subsection
(d) shall not apply for purposes of
this paragraph.
``(II) Allocation of deduction by
certain tax-exempt entities.--Rules
similar to subsection (d)(4)
(determined after application of
paragraph (5)) shall apply for purposes
of this paragraph.''.
(b) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendment made by this section shall apply to
taxable years beginning after December 31, 2021.
(2) Alternative deduction for energy efficient retrofit
building property.--Paragraph (6) of section 179D(i) of the
Internal Revenue Code of 1986 (as added by this section), and
any other provision of such section solely for purposes of
applying such paragraph, shall apply to property placed in
service after December 31, 2021 (in taxable years ending after
such date) if such property is placed in service pursuant to
qualified retrofit plan (within the meaning of such section)
established after such date.
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