USGBC, along with a diverse group of other organizations, has sent a letter urging Congress to renew and improve vital energy efficiency tax incentives that have recently expired. The incentives include the 179D tax deduction for energy-efficient commercial buildings, the 45L tax credit for new and efficient homes, and the 25C credit for nonbusiness energy property.
Section 179D of the tax code affords qualifying building owners and businesses a tax deduction of up to a $1.80 per square foot for various energy efficiency improvements placed into service during all open tax years. According to an economic study on the 179D tax deduction, the incentive would provide up to 77,000 new design and construction jobs and earn close to $7.4 billion in GDP annually over the next 10 years, if Congress renews the incentive.
The 45L tax credit provides a $2,000 credit for builders of homes that use 50 percent less energy for space heating and cooling and a $1,000 tax credit to builders of new manufactured homes achieving 30 percent energy savings for heating and cooling or where the manufactured home meets Energy Star requirements.
Further, the 25C incentive offers a 10 percent tax credit for the purchase of certain nonbusiness, energy-efficient materials up to $500. This incentivizes homeowners to select energy-efficient products rather than inefficient alternatives.
In the coming days, lawmakers will decide whether to extend these and other lapsed incentives. USBGC has continually supported these significant tax incentives and hopes Congress will continue to support them as well.