II 

113TH CONGRESS 

2D SESSION S. 2388 

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

recovery period for energy-efficient cool roof systems, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 22, 2014 

Mr. CARDIN (for himself, Mr. CRAPO, and Mr. HELLER) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the depreciation recovery period for energy-efficient cool 

roof systems, and for other purposes. 

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 ‘‘Energy-Efficient Cool 

5 Roof Jobs Act’’. 

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 is 

3 amended to read as follows: 

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

5 year property’ means— 

6 ‘‘(i) initial clearing and grading land 

7 improvements with respect to any electric 

8 utility transmission and distribution plant, 

9 and 

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

11 roof replacement property.’’. 

12 (2) QUALIFIED ENERGY-EFFICIENT COOL ROOF

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

14 Code is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(9) QUALIFIED ENERGY-EFFICIENT COOL

17 ROOF REPLACEMENT PROPERTY.— 

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

19 energy-efficient cool roof replacement property’ 

20 means any roof system— 

21 ‘‘(i) which is placed in service above 

22 conditioned or semi-heated space on an eli23 gible commercial building, 

24 ‘‘(ii) which has a slope equal to or less 

25 than 2:12, 


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1 ‘‘(iii) which replaces an existing roof 

2 system, and 

3 ‘‘(iv) which includes— 

4 ‘‘(I) insulation which meets or 

5 exceeds the minimum prescriptive re6 quirements in tables A–1 to A–9 in 

7 the Normative Appendix A of 

8 ASHRAE Standard 189.1–2011, and 

9 ‘‘(II) in the case of an eligible 

10 commercial building located in a cli11 mate zone other than climate zone 6, 

12 7, or 8 (as specified in ASHRAE 

13 Standard 189.1–2011), a primary 

14 roof covering which has a cool roof 

15 surface. 

16 ‘‘(B) COOL ROOF SURFACE.—The term 

17 ‘cool roof surface’ means a roof the exterior 

18 surface of which— 

19 ‘‘(i) has a 3-year-aged solar reflec20 tance of at least 0.55 and a 3-year-aged 

21 thermal emittance of at least 0.75, as de22 termined in accordance with the Cool Roof 

23 Rating Council CRRC–1 Product Rating 

24 Program, or 


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1 ‘‘(ii) has a 3-year-aged solar reflec2 tance index (SRI) of at least 64, as deter3 mined in accordance with ASTM Standard 

4 E1980, determined— 

5 ‘‘(I) using a medium-wind-speed 

convection coefficient of 12 W/m2 6 ·K, 

7 and 

8 ‘‘(II) using the values for 3-year9 aged solar reflectance and 3-year-aged 

10 thermal emittance determined in ac11 cordance with the Cool Roof Rating 

12 Council CRRC–1 Product Rating Pro13 gram. 

14 ‘‘(C) ROOF SYSTEM.—The term ‘roof sys15 tem’ means a system of roof components, in16 cluding roof insulation and a membrane or pri17 mary roof covering, but not including the roof 

18 deck, designed to weather-proof and improve 

19 the thermal resistance of a building. 

20 ‘‘(D) ELIGIBLE COMMERCIAL BUILDING.— 

21 The term ‘eligible commercial building’ means 

22 any building— 

23 ‘‘(i) which is within the scope of 

24 ASHRAE Standard 90.1–2010, 


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1 ‘‘(ii) which is located in the United 

2 States, 

3 ‘‘(iii) with respect to which deprecia4 tion (or amortization in lieu of deprecia5 tion) is allowable, and 

6 ‘‘(iv) which was placed in service be7 fore the date that is 3 years prior to the 

8 date the roof system described in subpara9 graph (A) is placed in service. 

10 ‘‘(E) ASHRAE.—The term ‘ASHRAE’ 

11 means the American Society of Heating, Refrig12 erating and Air-Conditioning Engineers.’’. 

13 (b) REQUIREMENT TO USE STRAIGHT LINE METH14 OD.—Paragraph (3) of section 168(b) of the Internal Rev15 enue Code of 1986 is amended by adding at the end the 

16 following new subparagraph: 

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

18 roof replacement property.’’. 

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

20 section 168(g)(3)(B) of the Internal Revenue Code of 

21 1986 is amended by striking the last item and inserting 

22 the following new items: 

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

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

23 (d) DEPRECIATION RULES FOR CERTAIN QUALIFIED

24 ENERGY-EFFICIENT COOL ROOF REPLACEMENT PROPVerDate Mar 15 2010 21:44 Jun 02, 2014 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2388.IS S2388

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1 ERTY FOR PURPOSES OF COMPUTING THE EARNINGS AND

2 PROFITS OF A REAL ESTATE INVESTMENT TRUST.— 

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

4 312(k) of the Internal Revenue Code of 1986 is 

5 amended by adding at the end the following new 

6 subparagraph: 

7 ‘‘(C) TREATMENT OF QUALIFIED ENERGY8 EFFICIENT COOL ROOF REPLACEMENT PROP9 ERTY.—In the case of any qualified energy-effi10 cient cool roof replacement property (within the 

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

12 for depreciation to earnings and profits of a 

13 real estate investment trust for any taxable 

14 year shall be determined under the alternative 

15 depreciation method (within the meaning of sec16 tion 168(g)(2)), except that the recovery period 

17 shall be 20 years.’’. 

18 (2) CONFORMING AMENDMENT.—Subparagraph 

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

20 striking ‘‘subparagraph (B),’’ and inserting ‘‘sub21 paragraphs (B) and (C),’’. 

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

23 this section shall apply to property placed in service after 

24 the date of the enactment of this Act. 

Æ 


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