26 U.S. Code § 179D - Energy efficient commercial buildings deduction
There shall be allowed as a deduction an amount equal to the cost of energy efficient commercial building property placed in service during the taxable year.
The Secretary, after consultation with the Secretary of Energy, shall promulgate regulations which describe in detail methods for calculating and verifying energy and power consumption and cost, based on the provisions of the 2005 California Nonresidential Alternative Calculation Method Approval Manual.
Any calculation under paragraph (2) shall be prepared by qualified computer software.
In the case of energy efficient commercial building property installed on or in property owned by a Federal, State, or local government or a political subdivision thereof, 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.
Each certification required under this section shall include an explanation to the building owner regarding the energy efficiency features of the building and its projected annual energy costs as provided in the notice under paragraph (3)(B)(iii).
The Secretary shall prescribe the manner and method for the making of certifications under this section.
The Secretary shall include as part of the certification process procedures for inspection and testing by qualified individuals described in subparagraph (C) to ensure compliance of buildings with energy-savings plans and targets. Such procedures shall be comparable, given the difference between commercial and residential buildings, to the requirements in the Mortgage Industry National Accreditation Procedures for Home Energy Rating Systems.
Individuals qualified to determine compliance shall be only those individuals who are recognized by an organization certified by the Secretary for such purposes.
For purposes of this subtitle, if a deduction is allowed under this section with respect to any energy efficient commercial building property, the basis of such property shall be reduced by the amount of the deduction so allowed.
The lighting system target under subsection (d)(1)(A)(ii) shall be a reduction in lighting power density of 25 percent (50 percent in the case of a warehouse) of the minimum requirements in Table 9.5.1 or Table 9.6.1 (not including additional interior lighting power allowances) of Standard 90.1–2007.
If, with respect to the lighting system of any building other than a warehouse, the reduction in lighting power density of the lighting system is not at least 40 percent, only the applicable percentage of the amount of deduction otherwise allowable under this section with respect to such property shall be allowed.
This section shall not apply with respect to property placed in service after December 31, 2016.
 So in original.
2015—Subsec. (c)(1)(B)(ii), (D). Pub. L. 114–113, § 341(a), substituted “Standard 90.1–2007” for “Standard 90.1–2001”.
Subsec. (c)(2). Pub. L. 114–113, § 341(b)(1), amended par. (2) generally. Prior to amendment, text read as follows: “The term ‘Standard 90.1–2001’ means Standard 90.1–2001 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on April 2, 2003).”
Subsec. (f)(1). Pub. L. 114–113, § 341(b)(2), (3), substituted “Table 9.5.1” for “Table 220.127.116.11”, “Table 9.6.1” for “Table 18.104.22.168”, and “Standard 90.1–2007” for “Standard 90.1–2001”.
Subsec. (f)(2)(C)(i). Pub. L. 114–113, § 341(b)(2), substituted “Standard 90.1–2007” for “Standard 90.1–2001”.
Subsec. (h). Pub. L. 114–113, § 190(a), substituted “December 31, 2016” for “December 31, 2014”.
2014—Subsec. (h). Pub. L. 113–295 substituted “December 31, 2014” for “December 31, 2013”.
2008—Subsec. (h). Pub. L. 110–343 substituted “December 31, 2013” for “December 31, 2008”.
2006—Subsec. (h). Pub. L. 109–432 substituted “2008” for “2007”.
Written determinations for this section
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