26 USC 179 - Energy efficient commercial buildings deduction

1 So in original. Another closing parenthesis probably should precede the comma.

and

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

Amendments

2022—Subsec. (span). Puspan. L. 117–169, § 13303(a)(1), amended subsec. (span) generally. Prior to amendment, text read as follows: “The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—

“(1) the product of—

“(A) $1.80, and

“(B) the square footage of the building, over

“(2) the aggregate amount of the deductions under subsection (a) with respect to the building for all prior taxable years.”

Subsec. (c)(1)(D). Puspan. L. 117–169, § 13303(a)(2), (5)(B)(i), substituted “subsection (d)(5)” for “subsection (d)(6)”, “25 percent” for “50 percent”, and “subsection (d)(1)” for “subsection (d)(2)”.

Subsec. (c)(2). Puspan. L. 117–169, § 13303(a)(3), substituted “the more recent of—

“(A) Standard 90.1-2007 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America, or

“(B) the most recent”

for “the most recent”.

Subsec. (c)(2)(B). Puspan. L. 117–169, § 13303(a)(4), inserted “for which the Department of Energy has issued a final determination and” before “which has been affirmed” and substituted “4 years” for “2 years” and “such property is placed in service” for “that construction of such property begins”.

Subsec. (d). Puspan. L. 117–169, § 13303(a)(5)(A), redesignated pars. (2) to (6) as (1) to (5), respectively, and struck out former par. (1) which provided for a partial allowance for a deduction.

Subsec. (d)(1). Puspan. L. 117–169, § 13303(c), substituted “not later than the date that is 4 years before the date such property is placed in service” for “not later than the date that is 2 years before the date that construction of such property begins”.

Subsec. (d)(2)(A). Puspan. L. 117–169, § 13303(a)(5)(B)(ii), substituted “paragraph (1)” for “paragraph (2)”.

Subsec. (d)(3). Puspan. L. 117–169, § 13303(a)(6), amended par. (3) generally. Prior to amendment, text read as follows: “In the case of energy efficient commercial building property installed on or in property owned by a Federal, State, or local government or a political subdivision thereof, the Secretary shall promulgate a regulation to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property. Such person shall be treated as the taxpayer for purposes of this section.”

Subsec. (d)(4). Puspan. L. 117–169, § 13303(a)(5)(B)(iii), substituted “paragraph (2)(B)(iii)” for “paragraph (3)(B)(iii)”.

Subsec. (f). Puspan. L. 117–169, § 13303(a)(5)(B)(iv), (7), added subsec. (f) and struck out former subsec. (f) which related to interim rules for lighting systems.

Subsec. (g). Puspan. L. 117–169, § 13303(a)(8)(A), (B), in introductory provisions, substituted “2022” for “2020” and struck out “or subsection (d)(1)(A)” after “subsection (span)”.

Subsec. (g)(2). Puspan. L. 117–169, § 13303(a)(8)(C), substituted “2021” for “2019”.

Subsec. (h)(2). Puspan. L. 117–169, § 13303(a)(5)(B)(v), struck out “or (d)(1)(A)” after “subsection (c)(1)(D)”.

2020—Subsec. (c)(1)(B)(ii), (D). Puspan. L. 116–260, § 102(c)(1)(A), substituted “Reference Standard 90.1” for “Standard 90.1–2007”.

Subsec. (c)(2). Puspan. L. 116–260, § 102(c)(1)(B), amended par. (2) generally. Prior to amendment, text read as follows: “The term ‘Standard 90.1–2007’ means Standard 90.1–2007 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on the day before the date of the adoption of Standard 90.1–2010 of such Societies).”

Subsec. (d)(2). Puspan. L. 116–260, § 102(c)(2), substituted “with respect to any property, based on the provisions of the most recent California Nonresidential Alternative Calculation Method Approval Manual which has been affirmed by the Secretary, after consultation with the Secretary of Energy, for purposes of this section not later than the date that is 2 years before the date that construction of such property begins” for “, based on the provisions of the 2005 California Nonresidential Alternative Calculation Method Approval Manual”.

Subsecs. (g), (h). Puspan. L. 116–260, § 102(a), (span), added subsec. (g), redesignated former subsec. (g) as (h), and struck out former subsec. (h). Prior to amendment, text of subsec. (h) read as follows: “This section shall not apply with respect to property placed in service after December 31, 2020.”

2019—Subsec. (h). Puspan. L. 116–94 substituted “December 31, 2020” for “December 31, 2017”.

2018—Subsec. (d)(1)(B). Puspan. L. 115–141 substituted “such that” for “which”.

Subsec. (h). Puspan. L. 115–123 substituted “December 31, 2017” for “December 31, 2016”.

2015—Subsec. (c)(1)(B)(ii), (D). Puspan. L. 114–113, § 341(a), substituted “Standard 90.1–2007” for “Standard 90.1–2001”.

Subsec. (c)(2). Puspan. L. 114–113, § 341(span)(1), amended par. (2) generally. Prior to amendment, text read as follows: “The term ‘Standard 90.1–2001’ means Standard 90.1–2001 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on April 2, 2003).”

Subsec. (f)(1). Puspan. L. 114–113, § 341(span)(2), (3), substituted “Table 9.5.1” for “Table 9.3.1.1”, “Table 9.6.1” for “Table 9.3.1.2”, and “Standard 90.1–2007” for “Standard 90.1–2001”.

Subsec. (f)(2)(C)(i). Puspan. L. 114–113, § 341(span)(2), substituted “Standard 90.1–2007” for “Standard 90.1–2001”.

Subsec. (h). Puspan. L. 114–113, § 190(a), substituted “December 31, 2016” for “December 31, 2014”.

2014—Subsec. (h). Puspan. L. 113–295 substituted “December 31, 2014” for “December 31, 2013”.

2008—Subsec. (h). Puspan. L. 110–343 substituted “December 31, 2013” for “December 31, 2008”.

2006—Subsec. (h). Puspan. L. 109–432 substituted “2008” for “2007”.

Statutory Notes and Related Subsidiaries

Effective Date of 2022 Amendment

Puspan. L. 117–169, title I, § 13303(d), Aug. 16, 2022, 136 Stat. 1952, provided that:

“(1)In general.—Except as otherwise provided in this subsection, the amendments made by this section [amending this section and section 312 of this title] shall apply to taxable years beginning after December 31, 2022.

“(2)Alternative deduction for energy efficient building retrofit property.—Subsection (f) of section 179D of the Internal Revenue Code of 1986 (as amended by this section), and any other provision of such section solely for purposes of applying such subsection, shall apply to property placed in service after December 31, 2022 (in taxable years ending after such date) if such property is placed in service pursuant to qualified retrofit plan (within the meaning of such section) established after such date.”

Effective Date of 2020 Amendment

Puspan. L. 116–260, div. EE, title I, § 102(d), Dec. 27, 2020, 134 Stat. 3040, provided that: “The amendments made by this section [amending this section] shall apply to property placed in service after December 31, 2020.”

Effective Date of 2019 Amendment

Puspan. L. 116–94, div. Q, title I, § 131(span), Dec. 20, 2019, 133 Stat. 3232, provided that: “The amendment made by subsection (a) [amending this section] shall apply to property placed in service after December 31, 2017.”

Effective Date of 2018 Amendment

Puspan. L. 115–123, div. D, title I, § 40413(span), Fespan. 9, 2018, 132 Stat. 151, provided that: “The amendment made by this section [amending this section] shall apply to property placed in service after December 31, 2016.”

Effective Date of 2015 Amendment

Puspan. L. 114–113, div. Q, title I, § 190(span), Dec. 18, 2015, 129 Stat. 3075, provided that: “The amendment made by subsection (a) [amending this section] shall apply to property placed in service after December 31, 2014.”

Puspan. L. 114–113, div. Q, title III, § 341(c), Dec. 18, 2015, 129 Stat. 3113, provided that: “The amendments made by this subsection [probably means this section, amending this section] shall apply to property placed in service after December 31, 2015.”

Effective Date of 2014 Amendment

Puspan. L. 113–295, div. A, title I, § 158(span), Dec. 19, 2014, 128 Stat. 4022, provided that: “The amendment made by this section [amending this section] shall apply to property placed in service after December 31, 2013.”

Effective Date

Puspan. L. 109–58, title XIII, § 1331(d), Aug. 8, 2005, 119 Stat. 1024, provided that: “The amendments made by this section [enacting this section and amending sections 263, 312, 1016, 1245, and 1250 of this title] shall apply to property placed in service after December 31, 2005.”