In the recent chaos of the budget and debt ceiling standoffs of the past weeks in Washington, it’s been easy to forget all the other legislation that Congress should address before the end of the year. One important tax incentive, the Commercial Buildings Tax Deduction (CBTD), is about to expire at the end of 2013, unless Congress renews it.
The CBTD was initially passed in conjunction with the Energy Policy Act in 2005. It promotes energy-efficient upgrades to commercial buildings through tax deductions like the popular partial deduction for lighting upgrades, which can provide building owners with significant savings without having to undergo a total building retrofit. Lighting upgrades cut energy, save money, and create jobs for the electrical industry.
Since there is currently little support in the House for stand-alone tax incentive bills, an extension of this tax deduction will most likely occur as part of a “tax extender” package which Congress may consider at the end of the year.
In additional to extending the program, President Obama earlier this year called to increase the value of the deductions. His plan would increase the maximum deduction from the current $1.80 per square foot to $3.00 per square foot, and increase the maximum partial deduction from $0.60 to $1.00 per square foot.
We support these increases and we would also like to see the program change from a tax deduction to a tax credit. Additionally, the deduction would benefit from an educational component on how to claim the deduction.
Visit the NAED Government Action Center today to write a letter to your members of Congress asking them to extend this important program.
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