04/03/14

Energy Efficiency Tax Incentives Act

The Energy Efficiency Tax Incentives Act, sponsored by Sens. Cardin (D-Md.), Feinstein (D-Calif.), and Schatz (D-Hawaii) would extend and update energy efficiency tax incentives.

179D: Commercial Buildings
  • Extends 179D, which expired at the end of 2013, through 2016.
  • Increases the maximum deduction from $1.80 to $3.00.
  • Updates the base code to ASHRAE 90.1-2007.
  • Adds a new performance-based component that rewards retrofits that produce actual and verified energy savings, and scales retrofit incentives to increase with greater energy savings.
  • Creates a new section to encourage retrofits in existing buildings.
  • Allows REITs to deduct retrofit project expenses for purposes of taxable income and dividend calculations
25C: Residential Improvements
  • Creates a new, performance-based credit, 25E, for residential energy efficiency improvements that increase the efficiency of a home by at least 20%.
  • Provides $2000 per home renovation, but would increase $500 for every 5% in additional energy efficiency improvement achieved, with a cap of $5000 for a home renovation that increases efficiency 50% or more.
Industrial Efficiency
  • Expands the 10% investment tax credit for CHP systems from the first 15 megawatts to the first 25 megawatts of system capacity, and creates two new tiers of tax credit.
  • Creates a tiered investment tax credit for efficient thermal biomass systems.
  • Creates a new 30% investment credit for qualifying waste heat to power systems.
  • Establishes a $120 per horsepower tax credit for efficient advanced motor systems with adjustable speed capability.
  • ·Creates a credit for downsizing in replacing large water-cooled chillers that use environmentally harmful refrigerants.
  • Creates a technology-neutral, performance-based investment tax credit for water efficiency measures in the manufacturing sector.

 

Summary available here