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Business and Policy Areas
Business and Policy Areas
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New Legislation Proposes Expansion of Energy Tax Credit

November 29, 2016

Rep. Dave Reichert (R-WA), along with co-sponsors Reps. Tom Reed (R-NY), Earl Blumenauer (D-OR), and Chris Van Hollen (D-MD), introduced bipartisan legislation in mid-November to expand Section 179D. The legislation makes several changes, including expanding eligibility to nonprofit entities.

Originally passed in 2005, Section 179D sought to incentivize energy efficient building practices by offering a tax deduction for energy efficient buildings of up to $1.80 per square foot. To encourage energy efficient building by the government, the provision was amended in 2008 to include a section allowing government building owners, including public colleges and universities, to allocate their deduction to the person or persons primarily responsible for designing new energy efficient properties, typically the building's architect or contractor.

The provision was extended twice following its initial expiration at the end of 2013, most recently in 2015. Throughout efforts to support extension of the deduction, both NACUBO and other interested associations have made the case that in addition to extension, 179D should be expanded to allow all nonprofit entities, including private colleges and universities, to take advantage of the ability to allocate the deduction to the primary designer of new energy efficient buildings.

NACUBO has advocated that private institutions should be on equal footing with public institutions under this incentive to build in an environmentally conscious way. The newly introduced legislation will even the playing field and allow nonprofits of all types to be responsible actors and builders in their communities.

While the future of this legislation is uncertain in the current lame-duck session of Congress, NACUBO has offered its support to the bill's sponsor and co-sponsors and will continue to advocate for 179D extension and expansion.

Contact

Megan Schneider
Assistant Director, Federal Affairs
202.861.2547
E-mail

Sally Grans Korsh
Director, Facilities Management and Environmental Policy
202.861.2571
E-mail