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H.R. 6915 - Building Efficiently Act of 2018

Introduced: 2018-09-26
Bill Status: Referred to the House Committee on Ways and Means.
 

Building Efficiently Act of 2018

This bill amends the Internal Revenue Code to expand the new energy efficient home tax credit to allow, in lieu of the existing credit, a credit for 3.3% of the cost of constructing a new energy efficient home that is a qualified energy efficient residential rental property.

An energy efficient residential rental property must be certified as being constructed, reconstructed, or retrofitted under a plan designed to reduce energy and power consumption of the building by at least 40% compared to: (1) the baseline annual energy and power consumption of the building in the case of a retrofit made to an existing building, or (2) a reference building which meets the minimum requirements of the International Energy Conservation Code 2004 in any other case.

The bill also eliminates the basis reduction requirements for low-income housing properties receiving: (1) the new energy efficient home credit, (2) the energy efficient commercial buildings deduction, or (3) the credit for investments in energy property.

Full Text


115th CONGRESS
2d Session
H. R. 6915


    To amend the Internal Revenue Code of 1986 to expand the new energy efficient home credit, and for other purposes.


IN THE HOUSE OF REPRESENTATIVES

September 26, 2018

    Mr. Langevin introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

    To amend the Internal Revenue Code of 1986 to expand the new energy efficient home credit, 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.

This Act may be cited as the “Building Efficiently Act of 2018”.

SEC. 2. Expansion of new energy efficient home credit.

(a) In general.—Paragraph (2) of section 45L(a) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following:

“(C) in lieu of subparagraphs (A) and (B), in the case of qualified new energy efficient home that is a qualified energy efficient residential rental property, 3.3 percent of the cost of construction of such property, reduced by any expenditure not taken into account under this section by reason of subsection (f).”.

(b) Qualified energy efficient residential rental property defined.—Subsection (b) of section 45L of such Code is amended by adding at the end the following:

“(5) QUALIFIED ENERGY EFFICIENT RESIDENTIAL RENTAL PROPERTY.—

“(A) IN GENERAL.—The term ‘qualified energy efficient residential real property’ means a building which is residential rental property which is described in subparagraph (B), (C), or (D).

“(B) NEW OR RECONSTRUCTED BUILDING.—A building is described in this subparagraph if—

“(i) the certification requirements of subparagraph (E) with respect to the building are met,

“(ii) the original use of which commences with the taxpayer, and

“(iii) the building is placed in service after the date of the enactment of the Building Efficiently Act of 2018.

“(C) IMPROVEMENTS TO EXISTING BUILDING.—A building is described in this subparagraph if, only after improvements are made to the building—

“(i) the certification requirements of subparagraph (E) with respect to the building are met,

“(ii) the original use of the improved building commences with the taxpayer,

“(iii) the improved building is placed in service after the date of the enactment of the Building Efficiently Act of 2018, and

“(iv) the taxpayer elects to the application of this paragraph with respect to the building.

“(D) BUILDINGS ACQUIRED BY PURCHASE.—A building is described in this subparagraph if the building—

“(i) is acquired by purchase from an unrelated person,

“(ii) meets the certification requirements of subparagraph (E), and

“(iii) is placed in service after the date of the enactment of the Building Efficiently Act of 2018.

“(E) CERTIFICATION REQUIREMENTS.—The requirements of this subparagraph are met if, with respect to a building, the building is certified in accordance with subsection (d) as being constructed, reconstructed, or retrofitted, as the case may be, under a plan designed to reduce energy and power consumption of the building by 40 percent or more in comparison to—

“(i) in the case of retrofits made to an existing building, the baseline annual energy and power consumption of the building, or

“(ii) in any other case, a reference building which meets the minimum requirements of the International Energy Conservation Code 2004 using methods of calculation under subsection (d).

“(F) BASELINE ANNUAL ENERGY AND POWER CONSUMPTION.—The baseline annual energy and power consumption of any building shall be determined by using—

“(i) a building energy performance benchmarking tool designated for purposes of this paragraph by the Administrator of the Environmental Protection Agency, which is based upon energy and power consumption data during the 1-year period ending on the date on which retrofits under the plan are placed in service, or

“(ii) such other methods of calculation as certified by the Secretary in accordance with subsection (d).

“(G) RELATED PERSONS.—For purposes of subparagraph (D), a person is related to another person if—

“(i) the persons are members of an affiliated group (as defined in section 1504), or

“(ii) the persons have a relationship described in subsection (b) of section 267; except that, for purposes of this clause, the phrase ‘80 percent or more’ shall be substituted for the phrase ‘more than 50 percent’ each place it appears in such subsection and rules similar to the rules of subsections (c) and (e) (other than paragraphs (4) and (5) thereof) shall apply.”.

(c) Conforming amendment.—Section 45L(d) is amended by striking “subsection (c)” both places it appears and inserting “subsection (b)(5) or (c)”.

(d) Effective Date.—The amendments made by this section shall apply to property placed in service after December 31, 2015.

SEC. 3. Elimination of basis reduction for low-income housing properties receiving certain energy benefits.

(a) New energy efficient home credit.—Subsection (e) of section 45L of the Internal Revenue Code of 1986 is amended—

(1) by striking “adjustment.—For purposes” and inserting “adjustment.—

“(1) IN GENERAL.—For purposes”; and

(2) by adding at the end the following new paragraph:

“(2) EXCEPTION FOR LOW-INCOME HOUSING PROPERTIES.—Paragraph (1) shall not apply to any property with respect to which a credit is allowed under section 42.”.

(b) Energy efficient commercial buildings deduction.—Subsection (e) of section 179D of the Internal Revenue Code of 1986 is amended—

(1) by striking “reduction.—For purposes” and inserting “reduction.—

“(1) IN GENERAL.—For purposes”; and

(2) by adding at the end the following new paragraph:

“(2) EXCEPTION FOR LOW-INCOME HOUSING PROPERTIES.—Paragraph (1) shall not apply to any property with respect to which a credit is allowed under section 42.”.

(c) Energy credit.—Paragraph (3) of section 50(c) of the Internal Revenue Code of 1986 is amended—

(1) by striking “and” at the end of subparagraph (A);

(2) by striking the period at the end of subparagraph (B) and inserting “, and”; and

(3) by adding at the end the following new subparagraph:

“(C) paragraph (1) shall not apply to any property with respect to which a credit is allowed under section 42.”.

(d) Effective date.—The amendments made by this section shall apply to property placed in service after December 31, 2018.


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