Energy Efficient Commercial Buildings Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 5160 To amend the Internal Revenue Code of 1986 to modify the energy efficient commercial buildings deduction. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 19, 2019 Mr. BLUMENAUER (for himself, Mr. SUOZZI, Ms. SA´NCHEZ, Mr. DANNY K. DAVIS of Illinois, Mr. HORSFORD, Mr. BEYER, Mr. PANETTA, Mr. SCHNEIDER, Mr. EVANS, Mr. DOGGETT, and Ms. MOORE) 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 modify the energy efficient commercial buildings deduction. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Energy Efficient Com- 4 mercial Buildings Act of 2019’’. 5 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5160.IH H5160 kjohnson on DSK79L0C42 with BILLS 2 •HR 5160 IH SEC. 2. ENERGY EFFICIENT COMMERCIAL BUILDINGS DE- 1 DUCTION. 2 (a) EXTENSION.—Section 179D(h) of the Internal 3 Revenue Code of 1986 is amended by striking ‘‘December 4 31, 2017’’ and inserting ‘‘December 31, 2024’’. 5 (b) INCREASE IN THE MAXIMUM AMOUNT OF DE- 6 DUCTION.— 7 (1) IN GENERAL.—Section 179D(b) of such 8 Code is amended by striking ‘‘$1.80’’ and inserting 9 ‘‘$3’’. 10 (2) INFLATION ADJUSTMENT.—Section 179D of 11 such Code is amended by adding at the end the fol- 12 lowing new subsection: 13 ‘‘(i) INFLATION ADJUSTMENT.—In the case of a tax- 14 able year beginning after 2020, each dollar amount in sub- 15 section (b) or subsection (d)(1)(A) shall be increased by 16 an amount equal to— 17 ‘‘(1) such dollar amount, multiplied by 18 ‘‘(2) the cost-of-living adjustment determined 19 under section 1(f)(3) for the calendar year in which 20 the taxable year begins, determined by substituting 21 ‘calendar year 2019’ for ‘calendar year 2016’ in sub- 22 paragraph (A)(ii) thereof.’’. 23 (3) CONFORMING AMENDMENT.—Section 24 179D(d)(1)(A) of such Code is amended by striking 25 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5160.IH H5160 kjohnson on DSK79L0C42 with BILLS 3 •HR 5160 IH ‘‘by substituting ‘$.60’ for ‘$1.80’ ’’ and inserting 1 ‘‘by substituting ‘$1’ for ‘$3’ ’’. 2 (c) LIMIT ON DEDUCTION LIMITED TO THREE-YEAR 3 PERIOD.—Section 179D(b)(2) of such Code is amended 4 by striking ‘‘for all prior taxable years’’ and inserting ‘‘for 5 the 3 years immediately preceding such taxable year’’. 6 (d) UPDATE OF STANDARDS.— 7 (1) ASHRAE STANDARDS.—Section 179D(c) of 8 such Code is amended— 9 (A) in paragraphs (1)(B)(ii) and (1)(D), 10 by striking ‘‘Standard 90.1–2007’’ and insert- 11 ing ‘‘Reference Standard 90.1’’, and 12 (B) by amending paragraph (2) to read as 13 follows: 14 ‘‘(2) REFERENCE STANDARD 90.1.—The term 15 ‘Reference Standard 90.1’ means, with respect to 16 property, the Standard 90.1 most recently adopted 17 (as of the date that is 2 years before the date that 18 construction of such property begins) by the Amer- 19 ican Society of Heating, Refrigerating, and Air Con- 20 ditioning Engineers and the Illuminating Engineer- 21 ing Society of North America.’’. 22 (2) CALIFORNIA NONRESIDENTIAL ALTER- 23 NATIVE CALCULATION METHOD APPROVAL MAN- 24 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5160.IH H5160 kjohnson on DSK79L0C42 with BILLS 4 •HR 5160 IH UAL.—Section 179D(d)(2) of such Code is amended 1 by striking ‘‘2005’’ and inserting ‘‘2019’’. 2 (e) CHANGE IN EFFICIENCY STANDARDS.—Section 3 179D(c)(1)(D) of such Code is amended by striking ‘‘50’’ 4 and inserting ‘‘30’’. 5 (f) PAYMENT FOR PUBLIC PROPERTY.—Section 6 179D(d)(4) of such Code is amended to read as follow: 7 ‘‘(4) PAYMENT FOR PUBLIC PROPERTY.— 8 ‘‘(A) IN GENERAL.—In the case of energy 9 efficient commercial building property placed in 10 service by a State or local government or a po- 11 litical subdivision thereof, such government or 12 subdivision shall be treated as making a pay- 13 ment against the tax imposed by subtitle A for 14 the taxable year equal to 10 percent of the 15 amount allowable as a deduction under sub- 16 section (a) with respect to such property. 17 ‘‘(B) TIMING.—The payment described in 18 subparagraph (A) shall be treated as made 19 on— 20 ‘‘(i) in the case of a State or local 21 government or a political subdivision there- 22 of for which no return is required under 23 section 6011 or 6033(a), the later of the 24 date that a return would be due under sec- 25 VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5160.IH H5160 kjohnson on DSK79L0C42 with BILLS 5 •HR 5160 IH tion 6033(a) if such government or sub- 1 division were described in that section or 2 the date on which such government or sub- 3 division submits a claim for credit or re- 4 fund (at such time and in such manner as 5 the Secretary shall provide), and 6 ‘‘(ii) in any other case, the later of the 7 due date of the return of tax for the tax- 8 able year or the date on which such return 9 is filed.’’. 10 (g) DEADWOOD.—Section 179D of such Code, as 11 amended by subsection (a), is amended by striking sub- 12 section (f) and redesignating subsections (g) and (h) as 13 subsections (f) and (g), respectively. 14 (h) EFFECTIVE DATE.— 15 (1) IN GENERAL.—Except as provided by para- 16 graph (2), amendments made by this section shall 17 apply to property placed in service after December 18 31, 2019. 19 (2) EXTENSION.—The amendment made by 20 subsection (a) shall apply to property placed in serv- 21 ice after December 31, 2017. 22 Æ VerDate Sep 11 2014 04:06 Nov 27, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H5160.IH H5160 kjohnson on DSK79L0C42 with BILLS