Bipartisan Legislation Introduced to Make 179D Tax Deduction Permanent

Bipartisan legislation has been introduced in Congress that would make permanent a key energy efficiency tax incentive for owners and designers of energy efficient buildings while expanding its benefits to designers of hospitals, schools, tribal community facilities and other non-profits.

H.R. 3507, introduced by Rep. Dave Reichert (R-WA) and co-sponsored by Rep. Tom Reed (R-NY), and Rep. Earl Blumenauer (D-OR), also modifies Section 179D of the tax code – the Energy-Efficient Commercial Building Deduction – to make small to mid-sized architect firms organized as subchapter S corporations eligible for the deduction.

Section 179D allowed qualifying building owners and businesses to receive an up to $1.80 per square foot tax deduction for their energy-efficient buildings placed into service during all open tax years. It was originally passed by Congress as part of the Energy Policy Act of 2005 and had been extended several times until it last expired at the end of 2016.

On July 27, 2017, the bill was referred to the Ways and Means Committee. You can follow its progress here.

Craig DiLouie

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