Title: Energy Efficient Commercial Buildings Act of 2019
Policy area: Taxation

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5160 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 5160

    To amend the Internal Revenue Code of 1986 to modify the energy 
               efficient commercial buildings deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2019

  Mr. Blumenauer (for himself, Mr. Suozzi, Ms. Sanchez, Mr. Danny K. 
Davis of Illinois, Mr. Horsford, Mr. Beyer, Mr. Panetta, Mr. Schneider, 
 Mr. Evans, Mr. Doggett, and Ms. Moore) 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 modify the energy 
               efficient commercial buildings deduction.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Efficient Commercial 
Buildings Act of 2019''.

SEC. 2. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    (a) Extension.--Section 179D(h) of the Internal Revenue Code of 
1986 is amended by striking ``December 31, 2017'' and inserting 
``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'' and inserting ``$3''.
            (2) Inflation adjustment.--Section 179D of such Code is 
        amended by adding at the end the following new subsection:
    ``(i) Inflation Adjustment.--In the case of a taxable year 
beginning after 2020, each dollar amount in subsection (b) or 
subsection (d)(1)(A) shall be increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined by substituting `calendar year 2019' for 
        `calendar year 2016' in subparagraph (A)(ii) thereof.''.
            (3) Conforming amendment.--Section 179D(d)(1)(A) of such 
        Code is amended by striking ``by substituting `$.60' for 
        `$1.80''' and inserting ``by substituting `$1' for `$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'' and inserting ``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'' and inserting 
                ``Reference Standard 90.1'', and
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Reference standard 90.1.--The term `Reference 
        Standard 90.1' means, with respect to property, the Standard 
        90.1 most recently adopted (as of the date that is 2 years 
        before the date that construction of such property begins) by 
        the American Society of Heating, Refrigerating, and Air 
        Conditioning Engineers and the Illuminating Engineering Society 
        of North America.''.
            (2) California nonresidential alternative calculation 
        method approval manual.--Section 179D(d)(2) of such Code is 
        amended by striking ``2005'' and inserting ``2019''.
    (e) Change in Efficiency Standards.--Section 179D(c)(1)(D) of such 
Code is amended by striking ``50'' and inserting ``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.
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