Bush Extends EPAct Energy Efficiency Tax Deductions until 2013
The Emergency Economic Stabilization Act of 2008, signed into law by President George W. Bush on Oct. 3 includes three provisions that should aid the commercial real estate industry.
The Emergency Economic Stabilization Act of 2008, signed into law by President George W. Bush on Oct. 3 includes three provisions that should aid the commercial real estate industry.
In addition to the financial rescue plan, the Act includes three legislative priorities for the commercial real estate industry: The two year extension of both the 15-year timeline for depreciating leasehold improvements and brownfields expensing, and a five-year extension of the tax deduction for energy efficient commercial buildings.
The two-year extensions on brownfields expensing and leasehold depreciation are retroactive to January 1, 2008 and will go through Dec. 31, 2009, The Building Owners and Managers Association (BOMA) International says. The deduction of up to $1.80/square foot for energy efficiency improvements made to commercial buildings that achieve 50 percent reduction in energy use, compared to a base building defined by the ASHRAE 90.1-2001 Standard, will now expire Dec. 31, 2013, BOMA says.
“We commend Congress and the Administration for passing the Emergency Economic Stabilization Act of 2008 with the provisions on leasehold depreciation, brownfields expensing and energy efficiency tax incentives,” says BOMA International Chair and Chief Elected Officer Richard D. Purtell, portfolio manager, Grubb & Ellis Management Services, Inc. “These provisions are critical for both commercial real estate and the overall economy as they will stimulate development, provide a more realistic depreciation schedule for tenant improvements and promote the industry’s voluntary effort to improve energy efficiency in commercial buildings.”
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