Legislative Update

The commercial building tax deduction provision (Section 1331) of the Energy Policy Act of 2005 (Public Law 109-58) is effective for property placed in service after December 31, 2005 and prior to January 1, 2008. Congress approved legislation (HR 6111) and President Bush signed on December 20, 2006, a one-year extension of the provision to January 1, 2009.

Extension of the provision requires the law to be amended by Congress. Efforts are underway by Coalition members to obtain introduction of "tax extender" legislation. As bills are introduced, and Congressional action takes place, we will be updating this section of the website.

^NEW  H.R. 5351 The Renewable Energy and Energy Conservation Tax Act of 2008 passed the House of Representatives on February 26, 2008, by a vote of 236-182. Extends the CBTD thru 2013 at $1.80 per square foot. No other CBTD statutory changes. Extension of CBTD estimated to cost $744 million.

H.R. 2776 ( 235 kb) — The House Ways and Means Committee approved, 24-16, the Renewable Energy and Energy Conservation Act of 2007 on June 20, 2007. Section 213 extends the commercial building tax deduction through December 31, 2013. The deduction amount is unchanged at $1.80 per square foot. HR 2776 may be taken up by the full House of Representatives in July as part of a larger energy legislation package. The House of Representatives approved the bill on August 4th by a vote of 221-189. Following passage, the bill was merged with HR. 3221, The New Direction for Energy Independence, National Security and Consumer Protection Act of 2007. HR 3221 was approved by a vote of 241-172.

The Senate Finance Committee ( 438 kb) passed an energy tax incentive package on June 19th and it was offered as an amendment to HR 6, the Energy Policy Act of 2007, during Senate floor debate on June 21. However, the tax amendment failed by a 57-36 vote to be added to the underlying bill (it needed 60 votes for cloture). The Senate Finance measure contained an extension of the CBTD through December 31, 2013, and the deduction was increased to $2.25 per square foot.    Senate leaders announced that they would work in include energy tax incentives in another bill. 

May 7, 2007 letters to the House Ways and Means Committee ( 41 kb) and Senate Finance Committee ( 90 kb) urging enactment of the EXTEND legislation.

Bills Introduced, 110^th Congress

S. 2398, “The Energy Competitiveness Act of 2006,” to establish an Advanced Research Projects Administration-Energy to initiate high risk, innovative energy research to improve the energy security of the United States, to extend certain energy tax incentives, and for other purposes. Introduced by Sen. Baucus March 9, 2006. Extends energy efficient commercial buildings deduction through 2010.

S.3628, “EXTEND the Energy Efficiency Incentives Act of 2006,” to amend the Internal Revenue Code of 1986 to improve and extend certain energy-related tax provisions, and for other purposes. Introduced by Sens. Snowe and Feinstein June 29, 2006. Extends commercial building tax deduction for designs completed through 2011 and building upgrades through 2013, and increases deduction for property placed in service upon enactment to $2.25 per square foot ($.75 partial allowance)

S. 2401, “The Alternative Energy Extender Act,” to amend the Internal Revenue Code of 1986 to extend certain energy tax incentives, and for other purposes. Introduced by Sens. Grassley and Baucus March 13, 2006. Extends energy efficient commercial buildings deduction through 2010.

S. 2571, H.R. 5331,“Breaking our Long-Term Dependence Energy Act of 2006,” to promote energy production and conservation and for other purposes. Introduced by Sen. Conrad April 6, 2006. Introduced by Reps. Pomeroy and Kapter May 9, 2006. Increases deduction for property placed in service after December 31, 2006 to $2.25 per square foot ($.75 partial allowance) and extends the deduction through 2010.

S. 2829, “Clean Energy Development for a Growing Economy Act of 2006,” to reduce the addiction of the United States to oil, to ensure near-term energy affordability and empower American families, to accelerate clean fuels and electricity, to provide government leadership for clean and secure energy, to secure a reliable, affordable, and sustainable energy future, and for other purposes. Introduced by Sen. Cantwell and several other Senators, including Finance Committee Democrats Kerry and Bingaman, on May 17, 2006. Extends energy efficient commercial buildings deduction through 2014.

S. 2993, “Strategic Energy Fund Act of 2006,” to amend the Internal Revenue Code of 1986 to impose a temporary oil profit fee and to use the proceeds of the fee collected to provide a Strategic Energy Fund and expand certain energy tax incentives, and for other purposes. Introduced by Sen. Clinton May 23, 2006. Extends energy efficient commercial buildings deduction through 2014.

H.R. 5809, “Energy Efficient Buildings Act of 2006,” to amend the Internal Revenue Code of 1986 to increase and extend the energy efficient commercial buildings deduction. Introduced by Rep. Hart July 18, 2006. Increases deduction for property placed in service after December 31, 2006 to $2.25 per square foot ($.75 partial allowance) and extends the deduction through 2010.