A bipartisan tax measure to spur building energy performance upgrades was introduced this week by Rep. Brad Schneider (D-IL) and Rep. Tom Rice (R-SC), both Members of the House Ways and Means Committee.
The Energy Efficient Qualified Improvement Property (E-QUIP) Act provides for accelerated depreciation period of 10 years for qualifying high-performance building systems and controls. While multifamily properties have not been eligible for traditional Qualified improvement Property (QIP) depreciation, the proposed measure broadens the model of QIP to include building structural and exterior components of commercial and multifamily properties for the purpose of catalyzing building performance upgrades.
NMHC is part of a broad coalition of industry groups that has been working on this concept. In fact, this coalition recently commissioned a study by the American Council for an Energy Efficient Economy, which found that this accelerated depreciation program would lead to significant reductions in carbon emissions and would create jobs across the economy. The study also found that the plan could result in a $15 billion reduction in energy bills at a cost to building owners and the U.S. Treasury of $5 billion each.