IN DECEMBER 2019, President Donald Trump signed H.R.1865-a tax extender bill reviving $35 billion in expired tax provisions-into law. Along with an extension of the Energy-Efficient Homes Tax Credit, these provisions include an extension of the Commercial Buildings Tax Deduction (CBTD) retroactive to Jan. 1, 2018, and forward to Dec. 31, 2020. This extension breathes new financial incentive into installing energy-efficient interior lighting, HVAC/hot water systems and building envelope features. The Energy Policy Act of 2005 created the CBTD, which modified federal tax code section 179D to incentivize the installation of energy-efficient building features with an accelerated tax deduction capped at $0.60 to $1.80 per square foot, depending on whether one or all three features were installed. While the CBTD is focused on new construction and renovation, it includes an option for lighting retrofits, called the Interim Lighting Rule.
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