Congress Votes to Extend Energy-efficiency Tax Deduction for Two Years

The American Institute of Architects (AIA) issued the following statement on Congress’s two-year extension of the 179D tax deduction, which provides up to $1.80 per square foot for the design of energy-efficient buildings. Please attribute the statement to AIA President Russell Davidson, FAIA:

“As architects, we’d have preferred a longer-term extension. With this deduction expiring each year, it has been difficult for us to plan our finances, which in turn has limited the effectiveness of this key incentive for designing energy-efficient buildings.

“Nonetheless, we are pleased members of Congress have voted to extend this tax provision through 2016 as part of the comprehensive budget bill. In addition to providing a benefit to commercial building owners, the 179D deduction encourages federal, state and local government building owners, like public schools or state universities, to build energy-efficient buildings by offering a tax deduction to the designer of these buildings.

“By allowing government entities to transfer the tax deduction to designers of buildings that surpass industry efficiency standards, our profession is able to put in the extra time and effort needed to design the best buildings for our neighborhoods and communities, while government entities can better manage their bottom lines.

“Our 87,000 members strongly support this deduction as one way to encourage the design and construction of buildings that are energy efficient—and save taxpayer dollars in the process. We’d like to see it made permanent.”

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