(1) IN GENERAL.—Subparagraph (F) of section 
168(e)(3) of the Internal Revenue Code of 1986 (re-
lating to classification of certain property) is amend-
ed 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 cool 
roof replacement property.’’. 
(2) QUALIFIED ENERGY-EFFICIENT COOL ROOF 
REPLACEMENT PROPERTY.—Section 168(e) of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(9) 
QUALIFIED
ENERGY-EFFICIENT
COOL 
ROOF REPLACEMENT PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
energy-efficient cool roof replacement property’ 
means any roof system— 
‘‘(i) which is placed in service— 
‘‘(I) 
above 
conditioned 
or 
semiheated space on an eligible com-
mercial building, and 
VerDate Mar 15 2010 
01:15 May 30, 2014
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4740.IH
H4740
dlhill on DSK7TPTVN1PROD with BILLS
‘‘(II) after the date of the enact-
ment of this paragraph, 
‘‘(ii) which replaces an existing roof 
system, 
‘‘(iii) which is a low-slope roof (a 
slope equal to or less then 2:12), 
‘‘(iv) which includes— 
‘‘(I) insulation which meets or 
exceeds the minimum prescriptive re-
quirements in tables A–1 to A–9 in 
the 
Normative 
Appendix 
A 
of 
ASHRAE Standard 189.1–2011, and 
‘‘(II) in the case of an eligible 
commercial building located in a cli-
mate zone other than climate zone 6, 
7, or 8 (as specified in ASHRAE 
Standard 189.1–2011), a primary 
roof covering which has a cool roof 
surface. 
‘‘(B) COOL
ROOF
SURFACE.—The term 
‘cool roof surface’ means a roof the exterior 
surface of which— 
‘‘(i) has a 3-year-aged solar reflec-
tance of at least 0.55 and a 3-year-aged 
thermal emittance of at least 0.75, as de-
VerDate Mar 15 2010 
01:15 May 30, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4740.IH
H4740
dlhill on DSK7TPTVN1PROD with BILLS
termined in accordance with the Cool Roof 
Rating Council CRRC–1 Product Rating 
Program, or 
‘‘(ii) has a 3-year-aged solar reflec-
tance index (SRI) of at least 64, as deter-
mined in accordance with ASTM Standard 
E1980, determined— 
‘‘(I) using a medium-wind-speed 
convection coefficient of 12 W/m2·K, 
and 
‘‘(II) using the values for 3-year- 
aged solar reflectance and 3-year-aged 
thermal emittance determined in ac-
cordance with the Cool Roof Rating 
Council CRRC–1 Product Rating Pro-
gram. 
‘‘(C) ROOF SYSTEM.—The term ‘roof sys-
tem’ means a system of roof components, in-
cluding roof insulation and a membrane or pri-
mary roof covering, but not including the roof 
deck, designed to weather-proof and improve 
the thermal resistance of a building. 
‘‘(D) COMMERCIAL BUILDING.—The term 
‘commercial building’ means any building 
which— 
VerDate Mar 15 2010 
01:15 May 30, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4740.IH
H4740
dlhill on DSK7TPTVN1PROD with BILLS
‘‘(i) is within the scope of ASHRAE 
Standard 90.1–2010, 
‘‘(ii) is located in the United States, 
‘‘(iii) with respect to which deprecia-
tion (or amortization in lieu of deprecia-
tion) is allowable, and 
‘‘(iv) was placed in service prior to the 
roof system replacement. 
‘‘(E) ASHRAE.—The term ‘ASHRAE’ 
means the American Society of Heating, Refrig-
erating and Air-Conditioning Engineers.’’. 
(b) REQUIREMENT TO USE STRAIGHT LINE METH-
OD.—Paragraph (3) of section 168(b) of such Code is 
amended by adding at the end the following new subpara-
graph: 
‘‘(J) Any qualified energy-efficient cool 
roof replacement property.’’. 
(c) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) of such Code is amended by striking 
the last item and inserting the following new items: 
‘‘(F)(i) ..................................................
(F)(ii) ...................................................
27.5.’’. 
(d) DEPRECIATION RULES FOR CERTAIN QUALIFIED 
ENERGY-EFFICIENT COOL ROOF REPLACEMENT PROP-
ERTY FOR PURPOSES OF COMPUTING THE EARNINGS AND 
PROFITS OF A REAL ESTATE INVESTMENT TRUST.— 
VerDate Mar 15 2010 
01:15 May 30, 2014
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4740.IH
H4740
dlhill on DSK7TPTVN1PROD with BILLS
(1) IN
GENERAL.—Paragraph (3) of section 
312(k) of such Code is amended by adding at the 
end the following new subparagraph: 
‘‘(C) TREATMENT OF QUALIFIED ENERGY 
EFFICIENT
COOL
ROOF
REPLACEMENT
PROP-
ERTY.—In the case of any qualified energy-effi-
cient cool roof replacement property (within the 
meaning of section 168(e)(9)), the adjustment 
for depreciation to earnings and profits of a 
real estate investment trust for any taxable 
year shall be determined under the alternative 
depreciation method (within the meaning of sec-
tion 168(g)(2)), except that the recovery period 
shall be 20 years.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(A) of section 312(k)(3) of such Code is amended by 
striking ‘‘subparagraph (B),’’ and inserting ‘‘sub-
paragraphs (B) and (C),’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Æ 
VerDate Mar 15 2010 
01:15 May 30, 2014
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H4740.IH
H4740
dlhill on DSK7TPTVN1PROD with BILLS