‘‘(E) CERTIFICATION
REQUIREMENTS.— 
The requirements of this subparagraph are met 
if, with respect to a building, the building is 
certified in accordance with section 45L(d) as 
being constructed, reconstructed, or retrofitted, 
as the case may be, under a plan designed to 
reduce energy and power consumption of the 
building by 40 percent or more in comparison 
to— 
‘‘(i) in the case a retrofits made to an 
existing building, the baseline annual en-
ergy and power consumption of the build-
ing, or 
‘‘(ii) in any other case, a reference 
building which meets the minimum re-
quirements of the International Energy 
Conservation Code 2004 using methods of 
calculation under section 45L(d). 
‘‘(F) BASELINE
ANNUAL
ENERGY
AND 
POWER
CONSUMPTION.—The baseline annual 
energy and power consumption of any building 
shall be determined by using— 
‘‘(i) a building energy performance 
benchmarking tool designated for purposes 
of this paragraph by the Administrator of 
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the Environmental Protection Agency, 
which is based upon energy and power con-
sumption data during the 1-year period 
ending on the date on which retrofits 
under the plan are placed in service, or 
‘‘(ii) such other methods of calculation 
as certified by the Secretary in accordance 
with 45L(d). 
‘‘(G) RELATED
PERSONS.—For purposes 
of subparagraph (D), a person is related to an-
other person if— 
‘‘(i) the persons are members of an 
affiliated group (as defined in section 
1504), or 
‘‘(ii) the persons have a relationship 
described in subsection (b) of section 267; 
except that, for purposes of this clause, the 
phrase ‘80 percent or more’ shall be sub-
stituted for the phrase ‘more than 50 per-
cent’ each place it appears in such sub-
section and rules similar to the rules of 
subsections (c) and (e) (other than para-
graphs (4) and (5) thereof) shall apply. 
‘‘(H) DENIAL
OF
DOUBLE
BENEFIT.—If 
this section applies to a building by reason of 
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subsection (e)(3)(F)(ii), the deduction under 
section 179D shall not be allowed.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) The table contained in section 168(c) of 
such Code is amended by inserting after the item re-
lating to 20-year property the following new item: 
‘‘25-year property ........................................................................ 25 years’’. 
(2) The table contained in section 467(e)(3)(A) 
of such Code is amended— 
(A) by inserting ‘‘which is not 25-year 
property’’ after ‘‘nonresidential real property’’, 
and 
(B) by inserting after the item relating to 
residential rental property and nonresidential 
real property the following new item: 
‘‘25-year property ........................................................................ 19 years.’’. 
(3) Clauses (iv), (v), and (ix) of section 
168(e)(3)(E) of such Code are each amended by in-
serting ‘‘(not described in subparagraph (G))’’ after 
‘‘property’’. 
(d) REQUIREMENT TO USE STRAIGHT LINE METH-
OD.—Paragraph (3) of section 168(b) of such Code (relat-
ing to property to which straight line method applies) is 
amended by redesignating subparagraphs (F), (G), (H), 
and (I) as subparagraphs (G), (H), (I), and (J), respec-
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tively, and by inserting after subparagraph (E) the fol-
lowing new subparagraph: 
‘‘(F) 
Property 
described 
in 
subsection 
(e)(3)(F)(ii) or subsection (e)(3)(G).’’. 
(e) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) of such Code is amended by striking 
the item relating to subparagraph (F) and inserting the 
following new items: 
‘‘(F)(i) ................................................................................................
(F)(ii) ...............................................................................................
(G) ....................................................................................................
25’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2012. 
Æ 
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