I 
115TH CONGRESS 
1ST SESSION H. R. 3507 
To amend the Internal Revenue Code of 1986 to make permanent and 
modify the energy efficient commercial buildings deduction, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2017 
Mr. REICHERT (for himself, Mr. BLUMENAUER, and Mr. REED) 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 make 
permanent and modify the energy efficient commercial 
buildings deduction, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ENERGY EFFICIENT COMMERCIAL BUILDINGS 
DEDUCTION. 
(a) DEDUCTION MADE PERMANENT.—Section 179D 
of the Internal Revenue Code of 1986 is amended by strik-
ing subsection (h). 
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(b) ALLOCATIONS OF DEDUCTIONS.—Paragraph (4) 
of section 179D(d) of such Code is amended to read as 
follows: 
‘‘(4) ALLOCATION OF DEDUCTION FOR CERTAIN 
PROPERTY.— 
‘‘(A) PROPERTY HELD BY GOVERNMENTS 
AND NONPROFITS.—In the case of energy effi-
cient commercial building property installed on 
or in property owned by a Federal, State, local, 
or Indian tribal government, or a political sub-
division thereof, or by an organization that is 
described in section 501(c)(3) and exempt from 
tax under section 501(a), the Secretary shall 
promulgate a regulation to allow the allocation 
of the deduction to the person primarily respon-
sible for designing the property in lieu of the 
owner of such property. Such person shall be 
treated as the taxpayer for purposes of this sec-
tion. 
‘‘(B) ALLOCATIONS
TO
PARTNERSHIPS 
AND S CORPORATIONS.—In the case of an allo-
cation of a deduction under this section to a 
partnership or S corporation, the Secretary 
shall by regulation or other guidance allow the 
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full benefit of a deduction allocated under this 
paragraph at the partner or shareholder level.’’. 
(c) LOW-INCOME HOUSING EXCEPTION TO BASIS 
REDUCTION.—Subsection (e) of section 179D of such 
Code is amended by inserting ‘‘(other than property placed 
in service in a qualified low-income building (within the 
meaning of section 42))’’ after ‘‘building property’’. 
(d) CONFORMING AMENDMENTS.— 
(1) The heading for section 179D of such Code 
is amended by inserting ‘‘AND
MULTIFAMILY’’ 
after ‘‘COMMERCIAL’’. 
(2) The item in the table of sections for part 
VI of subchapter B of chapter 1 of such Code relat-
ing to section 179D of such Code is amended by in-
serting ‘‘and multifamily’’ after ‘‘commercial’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendments made by this section 
shall apply to property placed in service after De-
cember 31, 2017. 
(2) 
EXCEPTION
FOR
PERMANENCY.—The 
amendment made by subsection (a) shall apply to 
property placed in service after December 31, 2016. 
Æ 
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