I 

113TH CONGRESS 

2D SESSION H. R. 4740 

To amend the Internal Revenue Code of 1986 to modify the depreciation 

recovery period for energy-efficient cool roof systems. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2014 

Mr. REED (for himself, Mr. PASCRELL, Mr. NUNES, and Mr. LARSON of Connecticut) 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 depreciation recovery period for energy-efficient cool 

roof systems. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Roofing Efficiency 

5 Jobs Act of 2014’’. 

6 SEC. 2. DEPRECIATION RECOVERY PERIOD FOR CERTAIN 

7 ROOF SYSTEMS. 

8 (a) 20–YEAR RECOVERY PERIOD.— 


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1 (1) IN GENERAL.—Subparagraph (F) of section 

2 168(e)(3) of the Internal Revenue Code of 1986 (re3 lating to classification of certain property) is amend4 ed to read as follows: 

5 ‘‘(F) 20-YEAR PROPERTY.—The term ‘20- 

6 year property’ means— 

7 ‘‘(i) initial clearing and grading land 

8 improvements with respect to any electric 

9 utility transmission and distribution plant, 

10 and 

11 ‘‘(ii) any qualified energy-efficient cool 

12 roof replacement property.’’. 

13 (2) QUALIFIED ENERGY-EFFICIENT COOL ROOF

14 REPLACEMENT PROPERTY.—Section 168(e) of such 

15 Code is amended by adding at the end the following 

16 new paragraph: 

17 ‘‘(9) QUALIFIED ENERGY-EFFICIENT COOL

18 ROOF REPLACEMENT PROPERTY.— 

19 ‘‘(A) IN GENERAL.—The term ‘qualified 

20 energy-efficient cool roof replacement property’ 

21 means any roof system— 

22 ‘‘(i) which is placed in service— 

23 ‘‘(I) above conditioned or 

24 semiheated space on an eligible com25 mercial building, and 


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1 ‘‘(II) after the date of the enact2 ment of this paragraph, 

3 ‘‘(ii) which replaces an existing roof 

4 system, 

5 ‘‘(iii) which is a low-slope roof (a 

6 slope equal to or less then 2:12), 

7 ‘‘(iv) which includes— 

8 ‘‘(I) insulation which meets or 

9 exceeds the minimum prescriptive re10 quirements in tables A–1 to A–9 in 

11 the Normative Appendix A of 

12 ASHRAE Standard 189.1–2011, and 

13 ‘‘(II) in the case of an eligible 

14 commercial building located in a cli15 mate zone other than climate zone 6, 

16 7, or 8 (as specified in ASHRAE 

17 Standard 189.1–2011), a primary 

18 roof covering which has a cool roof 

19 surface. 

20 ‘‘(B) COOL ROOF SURFACE.—The term 

21 ‘cool roof surface’ means a roof the exterior 

22 surface of which— 

23 ‘‘(i) has a 3-year-aged solar reflec24 tance of at least 0.55 and a 3-year-aged 

25 thermal emittance of at least 0.75, as deVerDate Mar 15 2010 01:15 May 30, 2014 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4740.IH H4740

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1 termined in accordance with the Cool Roof 

2 Rating Council CRRC–1 Product Rating 

3 Program, or 

4 ‘‘(ii) has a 3-year-aged solar reflec5 tance index (SRI) of at least 64, as deter6 mined in accordance with ASTM Standard 

7 E1980, determined— 

8 ‘‘(I) using a medium-wind-speed 

convection coefficient of 12 W/m2 9 ·K, 

10 and 

11 ‘‘(II) using the values for 3-year12 aged solar reflectance and 3-year-aged 

13 thermal emittance determined in ac14 cordance with the Cool Roof Rating 

15 Council CRRC–1 Product Rating Pro16 gram. 

17 ‘‘(C) ROOF SYSTEM.—The term ‘roof sys18 tem’ means a system of roof components, in19 cluding roof insulation and a membrane or pri20 mary roof covering, but not including the roof 

21 deck, designed to weather-proof and improve 

22 the thermal resistance of a building. 

23 ‘‘(D) COMMERCIAL BUILDING.—The term 

24 ‘commercial building’ means any building 

25 which— 


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1 ‘‘(i) is within the scope of ASHRAE 

2 Standard 90.1–2010, 

3 ‘‘(ii) is located in the United States, 

4 ‘‘(iii) with respect to which deprecia5 tion (or amortization in lieu of deprecia6 tion) is allowable, and 

7 ‘‘(iv) was placed in service prior to the 

8 roof system replacement. 

9 ‘‘(E) ASHRAE.—The term ‘ASHRAE’ 

10 means the American Society of Heating, Refrig11 erating and Air-Conditioning Engineers.’’. 

12 (b) REQUIREMENT TO USE STRAIGHT LINE METH13 OD.—Paragraph (3) of section 168(b) of such Code is 

14 amended by adding at the end the following new subpara15 graph: 

16 ‘‘(J) Any qualified energy-efficient cool 

17 roof replacement property.’’. 

18 (c) ALTERNATIVE SYSTEM.—The table contained in 

19 section 168(g)(3)(B) of such Code is amended by striking 

20 the last item and inserting the following new items: 

‘‘(F)(i) .................................................. 25 

(F)(ii) ................................................... 27.5.’’. 

21 (d) DEPRECIATION RULES FOR CERTAIN QUALIFIED

22 ENERGY-EFFICIENT COOL ROOF REPLACEMENT PROP23 ERTY FOR PURPOSES OF COMPUTING THE EARNINGS AND

24 PROFITS OF A REAL ESTATE INVESTMENT TRUST.— 


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1 (1) IN GENERAL.—Paragraph (3) of section 

2 312(k) of such Code is amended by adding at the 

3 end the following new subparagraph: 

4 ‘‘(C) TREATMENT OF QUALIFIED ENERGY

5 EFFICIENT COOL ROOF REPLACEMENT PROP6 ERTY.—In the case of any qualified energy-effi7 cient cool roof replacement property (within the 

8 meaning of section 168(e)(9)), the adjustment 

9 for depreciation to earnings and profits of a 

10 real estate investment trust for any taxable 

11 year shall be determined under the alternative 

12 depreciation method (within the meaning of sec13 tion 168(g)(2)), except that the recovery period 

14 shall be 20 years.’’. 

15 (2) CONFORMING AMENDMENT.—Subparagraph 

16 (A) of section 312(k)(3) of such Code is amended by 

17 striking ‘‘subparagraph (B),’’ and inserting ‘‘sub18 paragraphs (B) and (C),’’. 

19 (e) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to property placed in service after 

21 the date of the enactment of this Act. 

Æ 


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