In August, the leadership of the Senate Finance Committee released three bipartisan task force reports examining the utility of more than 40 temporary tax provisions, including energy incentives with direct connection to the real estate industry. USGBC is pleased that 179D, the energy efficiency commercial tax deduction, has been recommended for a long-term extension as part these efforts.
For background, 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. While the incentive is currently expired, USGBC, along with a diverse group of other organizations, has called for the deduction to be extended on a long-term basis, and has advocated for enhancements to the incentive to make it more usable by a broader set of building projects. We are hopeful this recommendation can help jump-start the long-term extension of 179D.
While the task force recommendation is positive on 179D, other energy incentives reviewed at the same time did not receive a recommendation for extension or expiration. If you would like to share your support for the extension of 179D or other energy incentives, please contact the U.S. House Committee on Ways and Means and the U.S. Senate Committee on Finance.