Concord is pleased to report that the Senate Finance Committee has taken decisive action to improve the proven value of the Section 179D deduction. Yesterday, July 21st, the Senate Finance Committee held an open executive session to consider a bill to extend certain expired tax provisions. The 52 expired or expiring provisions included for review included the Section 179D deduction (also known as the EPAct deduction as a result of its creation from the Energy Policy Act of 2005).
The original bill sent to the committee included a straight two-year extension of the deduction, with no changes to the underlying language, other than changing dates to include buildings and retrofits completed in 2015 and 2016. But the modified text of the bill that came out of the Senate Finance Committee includes some powerful changes to this important incentive, vastly increasing its scope and its importance to industry stakeholders.The final bill allows tribal governments and non-profits to allocate the 179D deduction to design firms, in the same manner allowed for government property under current law —two segments of the marketplace never before eligible for the incentive.
The bill also would change the energy standards used to determine if newly constructed or retrofitted buildings qualify for the 179D deduction, making them more stringent. (Buildings placed into service in 2016 would be compared to ASHRAE 90.1-2007, rather than the current ASHRAE 90.1-2001.) The timeline for this package being considered by the full Senate is uncertain — probably not until after the August recess and the September 30th deadline for funding the government.
Concord applauds the Senate Finance Committee on their important work in taking up the issue of tax extenders, specifically in relation the 179D or EPAct deduction, and will continue to monitor further legislative developments. In the words of Managing Member Dennis J. Stilger, Jr., “As the leading 179D certifying firm in the United States, we have been actively involved in advocating for the changes to the 179D deduction that the Senate Finance Committee has introduced in their latest markup. We see the Committee’s modifications to the 179D/EPAct deduction as a major step forward in insuring that the public policy goals of the original legislation are met, and continuing to incentivize stakeholders to continue advancing energy efficiency in our nation’s built environment. We look forward to working with our clients, and other stakeholders, in advocating for the extension of this deduction by the full Congress in the months ahead.”
Links:
Description Of The Chairman’s Mark
Estimated Revenue Effects Of The Chairman’s Mark
Concord is the nation’s leading 179D consulting firm. We work with market leaders across America, helping firms of all size in the A/E/C industry generate more profit per square foot. If your firm is interested in learning more about how Concord can help you take advantage of incentives you have already earned, contact us today. For immediate assistance contact Concord Managing Member Dennis J. Stilger, Jr. at dennis@concordlp.com or 888-897-5445.
