We, the undersigned members of the Coalition for Energy Efficient Jobs & Investment, urge you to extend the Section 179D deduction for energy efficient commercial buildings as soon as possible. This important incentive that helps drive economic and employment growth has been expired since December 31, 2017. With tax filing season underway, it is critically important that Congress acts quickly to extend Section 179D through at least 2018.
Our organizations and companies represent a broad spectrum of the U.S. economy. They include real estate, manufacturing, architecture, contracting, engineering, building services, financing, labor, education, environmental and energy efficiency advocates. We represent many small businesses that drive and sustain American job growth.
With the assistance of the Section 179D tax deduction, building owners have been able to leverage billions of dollars in private capital to introduce energy efficient enhancements in thousands of commercial and larger multifamily buildings. These enhancements have created and preserved hundreds of thousands of jobs over the life of the Section 179D tax deduction, and have helped our country make strides toward energy independence.
These benefits are confirmed by a recent economic impact study conducted by Regional Economic Models, Inc. (“REMI”). REMI’s conclusion is unequivocal, finding that “Section 179D is an engine of economic and employment growth.” In particular, an enhanced tax incentive for energy efficient commercial buildings, including reforms geared toward retrofits of privately-owned buildings, could support up to 76,529 jobs and contribute almost $7.4 billion toward our national GDP each year. These results represent a significant return on the taxpayer investment in Section 179D, well in excess of the provision’s revenue cost. The study also confirms that extending Section 179D would have a substantial positive impact on economic and employment growth.
To help provide certainty for the organizations and companies that utilize the Section 179D tax deduction, it is important to extend this provision through at least 2018 as soon as possible. We also encourage you to consider extending this provision beyond 2018. Doing so would encourage additional investment in energy efficient improvements by providing organizations and companies with the planning certainty they have lacked for the past few years.
We look forward to working with you to ensure that tax incentives for energy efficient investment continue to be an engine of growth for our economy. Thank you for your consideration.
Air Conditioning Contractors of America
Alliance to Save Energy
American Council of Engineering Companies
American Institute of Architects
Associated General Contractors of America
BLUE Energy Group
Building Owners and Managers Association
Business Council for Sustainable Energy
Citizens for Responsible Energy Solutions
Concord Energy Strategies
Consolidated Edison Solutions
Daikin US Corporation
E2 (Environmental Entrepreneurs)
Energy Systems Group
Energy Tax Savers, Inc.
ENGIE Services U.S.
Independent Electrical Contractors
Institute of Real Estate Management
Insulation Contractors Association of America
Johnson Controls, Inc.
Lexicon Lighting Technologies
LightPro Software, LLC
Micromega Systems, Inc.
National Apartment Association
National Association of College and University Business Officers (NACUBO)
National Association of Electrical Distributors
National Association of Energy Service Companies (NAESCO)
National Association of REALTORS® National Electrical Manufacturers Association (NEMA)
National Leased Housing Association National Multifamily Housing Council Rampart Partners LLC
Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA)
Silicon Valley Leadership Group
Smardt Chillers, Inc.
Sustainable Performance Solutions LLC U.S.
Green Building Council