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Congress Extends Tax Deduction Incentive for Energy Efficient Retrofits

Wednesday, February 28, 2018  
Posted by: Shannon Roberts
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Through the recent passage of the Bipartisan Budget Act of 2018, the Energy Efficient Commercial Buildings Tax Deduction—also known as Section 179D—has been retroactively extended through 2017. This important deduction, which incentivizes energy efficient retrofits, previously expired at the end of 2016. The one-year renewal will allow building owners who invested in upgrades to their property’s envelope, HVAC and lighting in 2017 that reduced the building’s energy consumption to take the full $1.80 per square foot (psf) deduction (or a partial deduction of $.60 psf for upgrades to individual building systems).

BOMA International’s advocacy team currently is working with lawmakers in Congress to encourage a long-term extension and modification of 179D. According to a study released last year by BOMA International in collaboration with other real estate industry groups and with support from a grant from Yardi, long-term extension and modification would create as many as 77,000 jobs and add $7.4 billion annually to the national gross domestic product. Read more about the study and the benefits of 179D online.

BOMA is working hard to get this tax provision extended into 2018.

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