Corporate Incentives to Go Green

On April 1, 2014, legislation was introduced to the United States Senate (S. 2189) that directly impacts financial benefits for companies who decide to go green.

The Energy Efficiency Tax Incentives Act was introduced to amend the Internal Revenue Code of 1986 and extend the various tax benefits outlined in the code.  In short, the following changes have been proposed:

  1. Extend commercial building tax deductions equal to the cost of energy efficient commercial building property through December 31, 2016
  2. Include multi-family buildings with commercial buildings
  3. Increase the maximum deduction from $1.80/ft2 to $3.00/ft2.
  4. Add a new section for tax deductions to apply to retrofit buildings
  5. Create a homeowner tax credit for home renovations that increase efficiency by at least 20%.
    1. Credit would be $2,000 per home renovation, with $500 increase for every 5% increase.  $5,000 max credit.
  6. Expand the 10% tax credit for Combined Heat and Power Systems to first 25MW of system capacity.  Adds a 20% credit for 75% efficiency and 30% credit for 85% efficiency.
  7. Create a tiered investment tax credit for thermal biomass systems of 65% or greater.
  8. Create a new 30% investment credit for waste heat to power systems
  9. Create a credit of $150 per ton plus $100 per ton downsized during equipment replacement.  This would only apply to chillers using CFC-11 and/or CFC-12.
  10. Create a performance-based investment tax credit for measure to reduce manufacturing water use.

You can follow S. 2189 on its journey through Congress here: http://beta.congress.gov/bill/113th-congress/senate-bill/2189.

 

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