On December 3, NAR in coalition with other industry partners, sent a letter to the Senate Committee on Finance and the Senate Committee on Energy & Natural Resources in support of S. 3591, the Commercial Building Modernization Act (CBMA). This act, introduced by Senators Snowe (R-ME), Bingaman (D-NM), Feinstein (D-CA) and Cardin (D-MD), extends and enhances the tax deduction for energy efficient commercial and multifamily buildings at Section 179D of the Internal Revenue Code. Specifically, the CBMA improves Section 179D’s effectiveness in promoting energy efficiency retrofits by: measuring energy savings and improvements by reference to the existing building’s own consumption baseline; linking the amount of the enhanced 179D deduction to energy savings achieved; and making the tax incentive useable for a broader range of real estate owners and other stakeholders.
The Senate Finance Committee, Subcommittee on Energy, Natural Resources, and Infrastructure, is scheduled to hold a hearing on “Incentives to Promote Energy,” which will address 179D, on Wednesday, December 12. Unless Congress takes action, the 179D deduction is scheduled to expire at the end of 2013. NAR will continue to support passage of the CBMA.