Commercial Efficiency Programs
BACKGROUND: Section 179D of the tax code allows for deductions for energy efficient commercials buildings. With the assistance of the Section 179D tax deduction, building owners have been able to leverage billions of dollars in private capital to introduce energy efficient enhancements in thousands of commercial and larger multifamily buildings. These enhancements have created and preserved hundreds of thousands of jobs over the life of the Section 179D tax deduction, and have helped our country make strides toward energy independence.
Section 179D had expired December 31, 2017.
SOLUTION: ACCA supported the inclusion of 179D in the Congressional budget passed in December 2019. Section 179D was extended through December 31, 2020.
BACKGROUND: In 2017, ACCA secured inclusion of the HEAT Act in the tax reform package. The HEAT Act provision allows a business owner to immediately expense new HVAC systems on their taxes, instead of writing it off over a 39 year period.
SOLUTION: ACCA supports maintaining and expanding this provision if Congress works to rewrite the tax laws. The renewal and permanent implementation of Section 179D will provide contractors with certainty and allow them to help their commercial customers plan long term building efficiency improvements.