Energy Improvement and Extension Act of 2008
On October 3, 2008, following weeks of contentious negotiations between the House and Senate, Congress approved, and the President signed into law the Energy Improvement and Extension Act of 2008 as part of (i.e. Division B) H.R. 1424, the Emergency Economic Stabilization Act of 2008 — a.k.a. the bailout bill.
Sec. 303 of the Energy Improvement and Extension Act of 2008 extends the Energy Efficient Commercial Buildings Tax Deduction from 2008 through 2013.
SEC. 303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION – Subsection (h) of section 179D is amended by striking `December 31, 2008′ and inserting `December 31, 2013′.
What is the Energy Efficient Commercial Buildings Tax Deduction?
- The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap.
How does the Energy Efficient Commercial Buildings Tax Deduction apply to lighting upgrades?
- From January 1, 2006 until the Treasury Department issues final regulations defining savings targets for individual building systems, the Commercial Buildings Deduction’s Interim Rules for Lighting Systems are in effect. The Interim Rules offer an accelerated tax deduction that is the lesser of: The complete cost of installing energy-efficient interior lighting; or $0.30 to $0.60/sq.ft. proportional to lighting power density (watts per square foot) savings of 25% to 40% below ASHRAE the 90.1-2001 standard lighting power density, which varies by building type.
Click here for the full text of the Energy Improvement and Extension Act of 2008 as well as H.R. 1424. Table of contents provided below.
TITLE I–ENERGY PRODUCTION INCENTIVES
Subtitle A–Renewable Energy Incentives
Sec. 101. Renewable energy credit.
Sec. 102. Production credit for electricity produced from marine renewables.
Sec. 103. Energy credit.
Sec. 104. Energy credit for small wind property.
Sec. 105. Energy credit for geothermal heat pump systems.
Sec. 106. Credit for residential energy efficient property.
Sec. 107. New clean renewable energy bonds.
Sec. 108. Credit for steel industry fuel.
Sec. 109. Special rule to implement FERC and State electric restructuring policy.
Subtitle B–Carbon Mitigation and Coal Provisions
Sec. 111. Expansion and modification of advanced coal project investment credit.
Sec. 112. Expansion and modification of coal gasification investment credit.
Sec. 113. Temporary increase in coal excise tax; funding of Black Lung Disability Trust Fund.
Sec. 114. Special rules for refund of the coal excise tax to certain coal producers and exporters.
Sec. 115. Tax credit for carbon dioxide sequestration.
Sec. 116. Certain income and gains relating to industrial source carbon dioxide treated as qualifying income for publicly traded partnerships.
Sec. 117. Carbon audit of the tax code.
TITLE II–TRANSPORTATION AND DOMESTIC FUEL SECURITY PROVISIONS
Sec. 201. Inclusion of cellulosic biofuel in bonus depreciation for biomass ethanol plant property.
Sec. 202. Credits for biodiesel and renewable diesel.
Sec. 203. Clarification that credits for fuel are designed to provide an incentive for United States production.
Sec. 204. Extension and modification of alternative fuel credit.
Sec. 205. Credit for new qualified plug-in electric drive motor vehicles.
Sec. 206. Exclusion from heavy truck tax for idling reduction units and advanced insulation.
Sec. 207. Alternative fuel vehicle refueling property credit.
Sec. 208. Certain income and gains relating to alcohol fuels and mixtures, biodiesel fuels and mixtures, and alternative fuels and mixtures treated as qualifying income for publicly traded partnerships.
Sec. 209. Extension and modification of election to expense certain refineries.
Sec. 210. Extension of suspension of taxable income limit on percentage depletion for oil and natural gas produced from marginal properties.
Sec. 211. Transportation fringe benefit to bicycle commuters.
TITLE III–ENERGY CONSERVATION AND EFFICIENCY PROVISIONS
Sec. 301. Qualified energy conservation bonds.
Sec. 302. Credit for nonbusiness energy property.
Sec. 303. Energy efficient commercial buildings deduction.
Sec. 304. New energy efficient home credit.
Sec. 305. Modifications of energy efficient appliance credit for appliances produced after 2007.
Sec. 306. Accelerated recovery period for depreciation of smart meters and smart grid systems.
Sec. 307. Qualified green building and sustainable design projects.
Sec. 308. Special depreciation allowance for certain reuse and recycling property.
TITLE IV–REVENUE PROVISIONS
Sec. 401. Limitation of deduction for income attributable to domestic production of oil, gas, or primary products thereof.
Sec. 402. Elimination of the different treatment of foreign oil and gas extraction income and foreign oil related income for purposes of the foreign tax credit.
Sec. 403. Broker reporting of customer’s basis in securities transactions.
Sec. 404. 0.2 percent FUTA surtax.
Sec. 405. Increase and extension of Oil Spill Liability Trust Fund tax.
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