S.3591. COMMERCIAL BUILDING MODERNIZATION ACT
SUMMMARY – To amend the Internal Revenue Code of 1986 to improve and extend the deduction for new and existing energy-efficient commercial buildings, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.
(a) Short Title – This Act may be cited as the ‘Commercial Building Modernization Act’.
(b) Amendment of 1986 Code- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
SECTION 2. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY-EFFICIENT COMMERCIAL BUILDINGS.
(a) Extension-
(1) THROUGH 2016- Subsection (h) of section 179D is amended by striking ‘December 31, 2013’ and inserting ‘December 31, 2016’.
(2) INCLUSION OF MULTIFAMILY BUILDINGS-
(A) IN GENERAL – Subparagraph (B) of section 179D(c)(1) is amended by striking ‘building’ and inserting ‘commercial building or multifamily building’.
(B) DEFINITIONS – Subsection (c) of section 179D is amended by adding at the end the following new paragraphs:
(3) COMMERCIAL BUILDING – The term ‘commercial building’ means a building with a primary use or purpose other than as residential housing.
(4) MULTIFAMILY BUILDING – The term ‘multifamily building’ means a structure of 5 or more dwelling units with a primary use as residential housing, and includes such buildings owned and operated as a condominium, cooperative, or other common interest community.’.
(3) INCLUSION OF PROPERTY LOCATED IN POSSESSIONS OR TERRITORIES- Clause (i) of section 179D(c)(1)(B) is amended by inserting ‘or any possession or territory thereof’ after ‘United States’.
(b) Increase in Maximum Amount of Deduction-
(1) IN GENERAL- Subparagraph (A) of section 179D(b)(1) is amended by striking ‘$1.80’ and inserting ‘$3.00’.
(2) PARTIAL ALLOWANCE- Paragraph (1) of section 179D(d) is amended to read as follows:
(1) PARTIAL ALLOWANCE-
(A) IN GENERAL- Except as provided in subsection (f), if–
(i) the requirement of subsection (c)(1)(D) is not met, but
(ii) there is a certification in accordance with paragraph (6) that–
(I) any system referred to in subsection (c)(1)(C) satisfies the energy-savings targets established by the Secretary under subparagraph (B) with respect to such system, or
(II) the systems referred to in subsection (c)(1)(C)(ii) and subsection (c)(1)(C)(iii) together satisfy the energy-savings targets established by the Secretary under subparagraph (B) with respect to such systems,
then the requirement of subsection (c)(1)(D) shall be treated as met with respect to such system or systems, and the deduction under subsection (a) shall be allowed with respect to energy-efficient commercial building property installed as part of such system and as part of a plan to meet such targets, except that subsection (b) shall be applied to such property described in clause (ii)(I) by substituting ‘$1.00’ for ‘$3.00’ and to such property described in clause (ii)(II) by substituting ‘$2.20’ for ‘$3.00’.
(B) REGULATIONS-
(i) IN GENERAL- The Secretary, after consultation with the Secretary of Energy, shall promulgate regulations establishing a target for each system described in subsection (c)(1)(C) which, if such targets were met for all such systems, the property would meet the requirements of subsection (c)(1)(D).
(ii) SAFE HARBOR FOR COMBINED SYSTEMS- The Secretary, after consultation with the Secretary of Energy, and not later than 6 months after the date of the enactment of the Commercial Building Modernization Act, shall promulgate regulations regarding combined envelope and mechanical system performance that detail appropriate components, efficiency levels, or other relevant information for the systems referred to in subsection (c)(1)(C)(iii) and subsection (c)(1)(C)(iv) together to be deemed to have achieved two-thirds of the requirements of subsection (c)(1)(D).