Would extend 179D Energy Efficient Commercial Construction Tax Incentive
As of publication, Senate is considering—and the House has yet to consider—an AGC-supported bipartisan budget bill for fiscal years 2018 and 2019 that: (1) averts arbitrary, across the board cuts to construction programs by lifting the budget caps established under sequestration; (2) provides nearly $90 billion (see chart for construction funding) in emergency funding for reconstruction and recovery efforts from the 2017 natural disasters; (3) creates an avenue for the appropriation of $20 billion in additional infrastructure funding over two years; and (4) renews certain tax incentives—specifically Section 179D—for energy efficient commercial construction projects. However, the bill does not address issues within the current immigration debate nor does it complete the FY 2018 funding process, setting the stage for another potential federal government shutdown on March 23 (assuming it the bill passes both houses of Congress tonight).
As noted, this legislation would establish an avenue—not actual funding—in FY 2018 and 2019 for additional infrastructure funding, amounting to $20 billion total. While the needs of our nation’s surface transportation, public facilities and other critical infrastructure require long-term solutions, this is a positive first step. AGC will continue to work with Congress and the administration to enact those long-term solutions in a significant infrastructure bill this year.
Additionally, the legislation would renew—through Dec. 31, 2017—Section 179D, which provides a tax deduction to help offset some of the high costs of energy efficient components and systems for commercial and larger multifamily buildings. This tax incentive is an effective tool to leverage private capital in the construction of energy efficient commercial construction projects.
For more information contact Jimmy Christianson at [email protected].