Energy Efficient Commercial Buildings Act of 2019

To amend the Internal Revenue Code of 1986 to modify the energy efficient commercial buildings deduction. 1. Short title This Act may be cited as the Energy Efficient Commercial Buildings Act of 2019 2. Energy efficient commercial buildings deduction (a) Extension Section 179D(h) December 31, 2017 December 31, 2024 (b) Increase in the maximum amount of deduction (1) In general Section 179D(b) of such Code is amended by striking $1.80 $3 (2) Inflation adjustment Section 179D of such Code is amended by adding at the end the following new subsection: (i) Inflation adjustment In the case of a taxable year beginning after 2020, each dollar amount in subsection (b) or subsection (d)(1)(A) shall be increased by an amount equal to— (1) such dollar amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2019 calendar year 2016 . (3) Conforming amendment Section 179D(d)(1)(A) of such Code is amended by striking by substituting $.60 $1.80 by substituting $1 $3 (c) Limit on deduction limited to three-Year period Section 179D(b)(2) of such Code is amended by striking for all prior taxable years for the 3 years immediately preceding such taxable year (d) Update of standards (1) ASHRAE standards Section 179D(c) of such Code is amended— (A) in paragraphs (1)(B)(ii) and (1)(D), by striking Standard 90.1–2007 Reference Standard 90.1 (B) by amending paragraph (2) to read as follows: (2) Reference Standard 90.1 The term Reference Standard 90.1 . (2) California Nonresidential Alternative Calculation Method Approval Manual Section 179D(d)(2) of such Code is amended by striking 2005 2019 (e) Change in efficiency standards Section 179D(c)(1)(D) of such Code is amended by striking 50 30 (f) Payment for public property Section 179D(d)(4) of such Code is amended to read as follow: (4) Payment for public property (A) In general In the case of energy efficient commercial building property placed in service by a State or local government or a political subdivision thereof, such government or subdivision shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to 10 percent of the amount allowable as a deduction under subsection (a) with respect to such property. (B) Timing The payment described in subparagraph (A) shall be treated as made on— (i) in the case of a State or local government or a political subdivision thereof for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and (ii) in any other case, the later of the due date of the return of tax for the taxable year or the date on which such return is filed. . (g) Deadwood Section 179D of such Code, as amended by subsection (a), is amended by striking subsection (f) and redesignating subsections (g) and (h) as subsections (f) and (g), respectively. (h) Effective date (1) In general Except as provided by paragraph (2), amendments made by this section shall apply to property placed in service after December 31, 2019. (2) Extension The amendment made by subsection (a) shall apply to property placed in service after December 31, 2017.

Summary: Energy Efficient Commercial Buildings Act of 2019 This bill reinstates and extends that tax deduction for energy efficient commercial buildings through 2024. It also increases the maximum allowable amount of such deduction. The bill modifies American Society of Heating, Refrigerating and Air-Conditioning Engineer (ASHRAE) standards and other efficiency standards for commercial buildings.