Van Drew Introduces Bipartisan Legislation to Make Buildings More Energy Efficient

WASHINGTON – U.S. Rep. Jeff Van Drew (D-2nd) and Mike Kelly (PA-16) introduced the Commercial, Low Emissions and Net Energy Reduction (CLEANER) Buildings Act of 2019 which would extend the tax deduction for energy efficient commercial buildings.
According to a release, if this incentive is renewed, the deduction, also known as “179D” for its place in the tax code, could generate thousands of new design and construction jobs and contribute millions to the gross domestic product. This policy pays for itself in energy savings, jobs, and economic benefits.
“Energy efficiency not only saves businesses and consumers money, but it also reduces pollution by cutting energy use,” stated Van Drew. “In the United States, commercial buildings account for one-fifth of the energy consumption and it’s time to work together in a bipartisan way to create jobs, lower energy costs, and reduce pollution. It is win, win, win.”
“There are simple things we can do to encourage good stewardship of our natural resources and safeguard the environment,” stated Kelly. “One way we can do that is by incentivizing the private sector to renovate and upgrade buildings to be more energy efficient. By extending the tax deduction for energy efficient commercial buildings, we can help the environment by conserving energy while creating jobs in the construction industry. The CLEANER Buildings Act is a win-win for American workers and the hometowns they live in.”
“The National Association of Realtors® thanks U.S. Rep. Van Drew for introducing legislation to extend the tax deduction for energy efficient commercial buildings. Realtors® remain committed to the principles of sustainability and energy conservation, and we believe policies like these will support both the environment and our nation’s economy. As NAR continues to educate real estate professionals, developers and investors on the benefits of voluntary, market-based energy conservation practices, we look forward to helping advance this bill through Congress,” said NAR President John Smaby.
Jason Hartke, CEO, Alliance to Save Energy states, “This is a key tax incentive for encouraging energy efficiency in commercial buildings, which account for about 20 percent of U.S. energy consumption. It is important that Congress extend this incentive to give building owners and designers the certainty they need to make these investments.”
Section 179D of the tax code offers a tax deduction to building owners and businesses for energy efficiency improvements such as lighting, heating and cooling, hot water systems, ventilation, or the building envelope like insulation or windows. It offers incentives for upgrades at new or existing buildings that cut the total energy and power cost by at least 50 percent compared to a building meeting the ASHRAE codes baseline for energy efficiency.