Sec. 5033. Deduction for new energy efficient commercial buildings
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/bill/114/s/2089/pcs/section-5033·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 179D is amended to read as follows: There shall be allowed as a deduction an amount equal to the applicable amount for each qualified building placed in service by the taxpayer during the taxable year. For purposes of subsection (a), the applicable amount shall be an amount equal to the product of— the applicable dollar value, and the square footage of the qualified building. For purposes of paragraph (1)(A), the applicable dollar value shall be an amount equal to $1.00 increased (but not above $4.75) by $0.25 for every 5 percentage points by which the efficiency ratio for the qualified building is certified to be greater than 25 percent.
For purposes of this section, the efficiency ratio of a qualified building shall be equal to the quotient, expressed as a percentage, obtained by dividing— an amount equal to the difference between— the annual level of energy consumption of the qualified building, and the annual level of energy consumption of the baseline building, by the annual level of energy consumption of the baseline building. For purposes of this section, the baseline building shall be a building which— is comparable to the qualified building, and meets the minimum requirements of Standard 90.1-2013 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on December 31, 2014).
The term qualified building means a building— located in the United States, which is owned by the taxpayer, and which is certified to have an annual level of energy consumption that is less than the baseline building and an efficiency ratio of not less than 25 percent. In the case of a qualified building owned by an eligible entity, the Secretary shall promulgate regulations to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property, with such person to be treated as the taxpayer for purposes of this section.
For purposes of this subsection, the term eligible entity means— a Federal, State, or local government or a political subdivision thereof, an Indian tribe (as defined in section 45A(c)(6)), or an organization described in section 501(c) and exempt from tax under section 501(a). For purposes of this subtitle, if a deduction is allowed under this section with respect to any qualified building, the basis of such property shall be reduced by the amount of the deduction so allowed.
A certification described in this section shall be made— in accordance with guidance prescribed by, and by a third-party that is accredited by a certification program approved by, the Secretary, in consultation with the Secretary of Energy. Such guidance shall specify procedures and methods for calculating annual energy consumption levels, and shall include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program.
Any calculation under paragraph
(1)shall be prepared by qualified computer software. For purposes of this paragraph, the term qualified computer software means software— for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy consumption levels as required by the Secretary, and which provides such forms as required to be filed by the Secretary in connection with energy consumption levels and the deduction allowed under this section. . The table of sections for part VI of subchapter B of chapter 1 is amended by striking the item relating to section 179D and inserting after the item relating to section 179C the following item: Sec. 179D. Energy efficient commercial building deduction. . The amendments made by this section shall apply to any qualified building placed in service after December 31, 2017.