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Extenders Bill Introduced in Senate

On August 5, 2015 Senate Finance Committee Chairman Hatch introduced S. 1946, the 2-year extenders package that was reported out of the Senate Finance Committee on July 21st.  The legislative text for the extenders bill can be found here.

The language for Section 179D is in Section 160 of the bill, beginning on page 74. A separate document, with those pages from Section 160 referencing Section 179D, can be found by following this link.  As we previously reported the extension language that has come out of the Senate Finance Committee includes modifications to add Indian Tribal Governments and certain non-profits to the language that allows Federal, state and local governments to allocate the Section 179D deduction to design firms. These changes are effective for property placed in service after December 31, 2014.    Also the language includes an update to the ASHRAE baseline standards used to determine qualification for the Section 179D deduction from the current ASHRAE 90.1-2001 standard to the more stringent ASHRAE 90.1-2007, for buildings and retrofits placed in service after December 31, 2015.

Specific language regarding the changes to the Section 179D deduction can be found below:

.10. Extension and modification of energy efficient commercial buildings deduction

The bill extends, for two years, through 2016, the deduction for energy efficient improvements to commercial buildings. The improvement can be made through efficient lighting systems, heating, cooling, ventilation, and hot water systems. In addition, the bill modifies the provision to update the qualifying efficiency standards to a more stringent level, and it allows tribal governments and non-profits to allocate the deduction to designers. This provision is estimated to cost $315 million over 10 years.

Our consultants do not expect the extenders bill to be considered on the Senate floor until the House sends over their version of an extenders package.  The House Ways and Means Committee is still expected to take up extenders after the August recess.  The House is only scheduled to be in session for about 10 days in September, so a Ways and Means markup may not happen until October.

For more information on legislative updates impacting tax extenders, or how your firm can benefit from the Section 179D Deduction, contact Concord at 888-897-5445 or via the following link today.