ShareOn Tuesday, August 13, the Senate Finance Committee released its task force reports on expiring tax provisions, including the Section 179D Energy Efficient Commercial Buildings Deduction (in the Cost Recovery Task Force Report, and briefly mentioned in the Energy Report). The bipartisan task forces, created by Senate Finance Committee Chair Chuck Grassley (R-IA) and Ranking Member Ron Wyden (D-OR) examined the temporary tax provisions that expired, or will expire, between December 31, 2017, and December 31, 2019, which comes to more than 40 provisions.
The "Cost Recovery Report" was especially favorable toward 179D, specifically stating "As the Co-Chairs of this task force, we agree that two, in particular, have proven on their merits to receive a permanent extension - Section 45G and Section 179D.” It goes on to say “While the 2017 tax law did make changes to accelerate depreciation for certain real estate investments, bonus depreciation alone does not provide enough of an incentive for these costly building improvements for both small and large developers. Therefore, the effects of 179D were not negated due to the tax bill's passage.”
These reports are a positive step toward reauthorization of the 179D deduction, but the question remains how the House of Representatives would "pay" for its extension, and if that pay-for will be palatable to the Senate. NAR is a member of the 179D Coalition and has been advocating for its long-term reauthorization since its expiration in 2018.
Read the Senate Finance Committee Press Release and all three reports.
Read the Cost Recovery Reportpdf.