Nationally Recognized Tax Reform Expert Encourages the Passage of Bill for Clean Energy

WEST PALM BEACH, Fla. - July 14, 2017 - PRLog -- A proposal bill was brought before the Senate on May 4, 2017 to extend and revise incentives for Energy Efficiency and Clean Energy. Tax reform expert and CEO of Engineered Tax Services (ETS), Julio Gonzalez, is on board with its passage. He plays an advisory role in the development of the comprehensive tax reform bill anticipated to pass later this year, and is actively working with Congress, Senate, and the AIA to help encourage the passage of this bill as well. The bill would allow for continued incentives for conserving energy in the United States as bills like 179D were originally intended. "The concern is that without these incentives, we will not only go to a lower energy standard but also see job losses," said Julio.

The proposed change spearheaded by Mr. Wyden and Senator Cardin includes the following provisions:

45L Proposed changes include:

- $1,500 to be increased by $100 for every 5% points greater than the 25% efficiency ratio (not to exceed $3,000)

- Extension through December 31, 2018

179D Proposed changes include:

- Extension through December 31, 2018

- Applicable to NEW CONSTRUCTION ONLY

- Deduction equal to $1.00 increase by $0.25 for every 5% points greater than 25% of the efficiency ratio (not to exceed $4.75)

- Minimum requirements based off ASHRAE 90.1-2016

- Expansion of allocation to include Indian tribe property, and non-profit organizations

Addition of 179F: Deduction for Energy Efficient Improvements to Commercial Buildings:

- Applicable to Energy Efficient Improvements

- Dollar value equal to $1.25 increased by $0.50 for every 5 percentage points great than 20% of the efficiency ratio (not to exceed $9.25)

As exciting as these proposed changes are, it is not expected to pass on its own as a stand-along bill. This is considered a Democratic Bill and thus is not expected to be included in the initial Republican version of the comprehensive tax reform bill.

The hope is that portions of the bill will be included in the Senate Finance and House W&M's Committees' final tax reform bill or in a larger "extenders" package if comprehensive tax reform does not get through.

There is, however, bi-partisan support for 179D extenders on the house side, which may provide leverage to get a version of the 179D provision in the final tax reform bill. Although this bill is not expected to pass "as-is", the hope is that portions of it will be rolled into the broader tax reform or tax extenders bill later this year or early next year.

About Engineered Tax Services

ETS is a National Specialty Tax Firm providing consulting and analysis for Real Estate owners, Investors, and Financial Consultants across the country. For more information, or to register for up-to-date notifications of tax and incentive changes, please visit our website at http://www.EngineeredTaxServices.com or contact ETS at (561) 253-6640.