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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2598 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2598

 To amend the Internal Revenue Code of 1986 to reduce the depreciation 
  recovery periods for energy efficient commercial buildings, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2013

 Mr. Langevin (for himself, Mr. Blumenauer, and Mr. Welch) 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 reduce the depreciation 
  recovery periods for energy efficient commercial buildings, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Building Efficiently Act of 2013''.

SEC. 2. SHORTER DEPRECIATION RECOVERY PERIODS FOR ENERGY EFFICIENT 
              BUILDINGS.

    (a) 25-Year Recovery Period for Energy Efficient Nonresidential 
Real Property.--
            (1) In general.--Section 168(e)(3) of the Internal Revenue 
        Code of 1986 is amended by inserting after subparagraph (F) the 
        following new subparagraph:
                    ``(G) 25-year property.--The term `25-year 
                property' means any qualified energy efficient 
                nonresidential real property.''.
            (2) Qualified energy efficient nonresidential real property 
        defined.--Subsection (i) of section 168 of such Code is amended 
        by adding at the end the following:
            ``(20) Qualified energy efficient nonresidential real 
        property.--
                    ``(A) In general.--The term `qualified energy 
                efficient nonresidential real property' means a 
                building which is nonresidential real property which is 
                described in subparagraph (B), (C), or (D).
                    ``(B) New or reconstructed building.--A building is 
                described in this subparagraph if--
                            ``(i) the certification requirements of 
                        subparagraph (E) with respect to the building 
                        are met,
                            ``(ii) the original use of the building 
                        commences with the taxpayer, and
                            ``(iii) the building is placed in service 
                        after the date of the enactment of this 
                        paragraph.
                    ``(C) Improvements to existing building.--A 
                building is described in this subparagraph if, only 
                after improvements are made to the building--
                            ``(i) the certification requirements of 
                        subparagraph (E) with respect to the building 
                        are met,
                            ``(ii) the original use of the improved 
                        building commences with the taxpayer,
                            ``(iii) the improved building is placed in 
                        service after the date of the enactment of this 
                        paragraph, and
                            ``(iv) the taxpayer elects to the 
                        application of this paragraph with respect to 
                        the building.
                    ``(D) Buildings acquired by purchase.--A building 
                is described in this subparagraph if the building--
                            ``(i) is acquired by purchase from an 
                        unrelated person,
                            ``(ii) meets the certification requirements 
                        of subparagraph (E), and
                            ``(iii) is placed in service after the date 
                        of the enactment of this paragraph.
                    ``(E) Certification requirements.--The requirements 
                of this subparagraph are met if, with respect to a 
                building, the building is certified in accordance with 
                section 179D(d)(6) as being constructed, reconstructed, 
                or retrofitted, as the case may be, under a plan 
                designed to reduce energy and power consumption of the 
                building by 40 percent or more in comparison to--
                            ``(i) in the case a retrofits made to an 
                        existing building, the baseline annual energy 
                        and power consumption of the building, or
                            ``(ii) in any other case, a reference 
                        building which meets the minimum requirements 
                        of Standard 90.1-2004 using methods of 
                        calculation under section 179D(d)(2).
                    ``(F) Baseline annual energy and power 
                consumption.--The baseline annual energy and power 
                consumption of any building shall be determined by 
                using--
                            ``(i) a building energy performance 
                        benchmarking tool designated for purposes of 
                        this paragraph by the Administrator of the 
                        Environmental Protection Agency, which is based 
                        upon energy and power consumption data during 
                        the 1-year period ending on the date on which 
                        retrofits under the plan are placed in service, 
                        or
                            ``(ii) such other methods of calculation as 
                        certified by the Secretary in accordance with 
                        179D(d)(3).
                    ``(G) Standard 90.1-2004.--The term `Standard 90.1-
                2004' means Standard 90.1-2004 of the American Society 
                of Heating, Refrigerating, and Air Conditioning 
                Engineers and the Illuminating Engineering Society of 
                North America (as in effect on July 30, 2012).
                    ``(H) Related persons.--For purposes of 
                subparagraph (D), a person is related to another person 
                if--
                            ``(i) the persons are members of an 
                        affiliated group (as defined in section 1504), 
                        or
                            ``(ii) the persons have a relationship 
                        described in subsection (b) of section 267; 
                        except that, for purposes of this clause, the 
                        phrase `80 percent or more' shall be 
                        substituted for the phrase `more than 50 
                        percent' each place it appears in such 
                        subsection and rules similar to the rules of 
                        subsections (c) and (e) (other than paragraphs 
                        (4) and (5) thereof) shall apply.
                    ``(I) Denial of double benefit.--If this section 
                applies to a building by reason of subsection 
                (e)(3)(G), the deduction under section 179D shall not 
                be allowed.''.
    (b) 20-Year Recovery Period for Energy Efficient Residential Rental 
Property.--
            (1) In general.--Subparagraph (F) of section 168(e)(3) of 
        such Code (relating to 20-year property) is amended to read as 
        follows:
                    ``(F) 20-year property.--The term `20-year 
                property' means--
                            ``(i) initial clearing and grading land 
                        improvements with respect to any electric 
                        utility transmission and distribution plant, 
                        and
                            ``(ii) any qualified energy efficient 
                        residential rental property.''.
            (2) Qualified energy efficient residential rental property 
        defined.--Subsection (i) of section 168 of such Code, as 
        amended by subsection (a), is amended by adding at the end the 
        following:
            ``(21) Qualified energy efficient residential rental 
        property.--
                    ``(A) In general.--The term `qualified energy 
                efficient nonresidential real property' means a 
                building which is residential rental property which is 
                described in subparagraph (B), (C), or (D).
                    ``(B) New or reconstructed building.--A building is 
                described in this subparagraph if--
                            ``(i) the certification requirements of 
                        subparagraph (E) with respect to the building 
                        are met,
                            ``(ii) the original use of which commences 
                        with the taxpayer, and
                            ``(iii) the building is placed in service 
                        after the date of the enactment of this 
                        paragraph.
                    ``(C) Improvements to existing building.--A 
                building is described in this subparagraph if, only 
                after improvements are made to the building--
                            ``(i) the certification requirements of 
                        subparagraph (E) with respect to the building 
                        are met,
                            ``(ii) the original use of the improved 
                        building commences with the taxpayer,
                            ``(iii) the improved building is placed in 
                        service after the date of the enactment of this 
                        paragraph, and
                            ``(iv) the taxpayer elects to the 
                        application of this paragraph with respect to 
                        the building.
                    ``(D) Buildings acquired by purchase.--A building 
                is described in this subparagraph if the building--
                            ``(i) is acquired by purchase from an 
                        unrelated person,
                            ``(ii) meets the certification requirements 
                        of subparagraph (E), and
                            ``(iii) is placed in service after the date 
                        of the enactment of this paragraph.
                    ``(E) Certification requirements.--The requirements 
                of this subparagraph are met if, with respect to a 
                building, the building is certified in accordance with 
                section 45L(d) as being constructed, reconstructed, or 
                retrofitted, as the case may be, under a plan designed 
                to reduce energy and power consumption of the building 
                by 40 percent or more in comparison to--
                            ``(i) in the case a retrofits made to an 
                        existing building, the baseline annual energy 
                        and power consumption of the building, or
                            ``(ii) in any other case, a reference 
                        building which meets the minimum requirements 
                        of the International Energy Conservation Code 
                        2004 using methods of calculation under section 
                        45L(d).
                    ``(F) Baseline annual energy and power 
                consumption.--The baseline annual energy and power 
                consumption of any building shall be determined by 
                using--
                            ``(i) a building energy performance 
                        benchmarking tool designated for purposes of 
                        this paragraph by the Administrator of the 
                        Environmental Protection Agency, which is based 
                        upon energy and power consumption data during 
                        the 1-year period ending on the date on which 
                        retrofits under the plan are placed in service, 
                        or
                            ``(ii) such other methods of calculation as 
                        certified by the Secretary in accordance with 
                        45L(d).
                    ``(G) Related persons.--For purposes of 
                subparagraph (D), a person is related to another person 
                if--
                            ``(i) the persons are members of an 
                        affiliated group (as defined in section 1504), 
                        or
                            ``(ii) the persons have a relationship 
                        described in subsection (b) of section 267; 
                        except that, for purposes of this clause, the 
                        phrase `80 percent or more' shall be 
                        substituted for the phrase `more than 50 
                        percent' each place it appears in such 
                        subsection and rules similar to the rules of 
                        subsections (c) and (e) (other than paragraphs 
                        (4) and (5) thereof) shall apply.
                    ``(H) Denial of double benefit.--If this section 
                applies to a building by reason of subsection 
                (e)(3)(F)(ii), the deduction under section 179D shall 
                not be allowed.''.
    (c) Conforming Amendments.--
            (1) The table contained in section 168(c) of such Code is 
        amended by inserting after the item relating to 20-year 
        property the following new item:

        ``25-year property................................. 25 years''.
            (2) The table contained in section 467(e)(3)(A) of such 
        Code is amended--
                    (A) by inserting ``which is not 25-year property'' 
                after ``nonresidential real property'', and
                    (B) by inserting after the item relating to 
                residential rental property and nonresidential real 
                property the following new item:

        ``25-year property.................................19 years.''.
            (3) Clauses (iv), (v), and (ix) of section 168(e)(3)(E) of 
        such Code are each amended by inserting ``(not described in 
        subparagraph (G))'' after ``property''.
    (d) Requirement To Use Straight Line Method.--Paragraph (3) of 
section 168(b) of such Code (relating to property to which straight 
line method applies) is amended by redesignating subparagraphs (F), 
(G), (H), and (I) as subparagraphs (G), (H), (I), and (J), 
respectively, and by inserting after subparagraph (E) the following new 
subparagraph:
            ``(F) Property described in subsection (e)(3)(F)(ii) or 
        subsection (e)(3)(G).''.
    (e) Alternative System.--The table contained in section 
168(g)(3)(B) of such Code is amended by striking the item relating to 
subparagraph (F) and inserting the following new items:

        ``(F)(i)...............................................     25 
         (F)(ii)...............................................     20 
         (G)...................................................   25''.
    (f) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2012.
                                 <all>
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