Title: To amend the Internal Revenue Code of 1986 to make permanent and modify the energy efficient commercial buildings deduction, and for other purposes.
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code, with respect to the deduction for energy efficient commercial buildings, to: (1) make the deduction permanent, (2) permit 501(c)(3) tax-exempt organizations and Indian tribal governments to allocate the deduction to the person primarily responsible for designing the property in lieu of the owner of the property, (3) allow partnerships and S corporations to receive the full benefit of a deduction allocated at the partner or shareholder level, and (4) exempt property placed in service in a qualified low-income building from the requirement to reduce the basis of the property by the amount of the deduction.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3507 Introduced in House (IH)]

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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 Representatives 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 striking subsection (h).
    (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 efficient commercial 
                building property installed on or in property owned by 
                a Federal, State, local, or Indian tribal government, 
                or a political subdivision 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 responsible 
                for designing the property in lieu of the owner of such 
                property. Such person shall be treated as the taxpayer 
                for purposes of this section.
                    ``(B) Allocations to partnerships and s 
                corporations.--In the case of an allocation of a 
                deduction under this section to a partnership or S 
                corporation, the Secretary shall by regulation or other 
                guidance allow the 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 relating to section 179D 
        of such Code is amended by inserting ``and multifamily'' after 
        ``commercial''.
    (e) Effective Date.--
            (1) In general.--Except as provided by paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after December 31, 2017.
            (2) Exception for permanency.--The amendment made by 
        subsection (a) shall apply to property placed in service after 
        December 31, 2016.
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