Policy Issues

Roundtable Makes 5 Recommendations to Improve Proposed Green Tax Incentives

November 15, 2021

Reference document: The Roundtable's recommendations.

The Real Estate Roundtable on Nov. 16, 2021 sent recommendations to the Senate Finance  and House Ways and Means Committees to improve the Green Energy tax subtitle of the Build Back Better (BBB) Act.

The Roundtable urged Congress to consider targeted changes to the BBB Act to further our shared objectives to slash GHG emissions and make rapid progress toward a "net zero" economy by mid-century.  The recommendations also would scale deployment of low- and zero-carbon tech in the nation's commercial and multifamily building infrastructure.

(1)   Clarify that "thermal energy storage systems" are included in the proposed expansion of qualifying clean energy properties under the Section 48 Investment Tax Credit.

(2)   Private affordable housing, apartments, and workplace properties are prime locations for EV charging stations. Further revise the 30C tax credit to support EV chargers in the non-public, but widely used, parking lots and garages that serve America's residential and business tenants who seek to conveniently "charge-up" while at home or at work.

(3)   Better align the BBB Act with the Biden Administration's long-term climate strategy -- by providing accelerated depreciation and other incentives for heat pumps and other components that "electrify" commercial and multifamily buildings.

(4)   Induce more "retrofits" of aging buildings by allowing taxpayers to claim the 179D deduction in the year high-efficiency equipment is placed in service -- not one or more years after the business incurs the high upfront costs to purchase and install the expensive equipment.

(5)   The inclusion of Davis-Bacon and apprenticeship hiring will seriously undermine climate goals -- because the high costs to comply with these labor standards will more than offset the BBB Act''s "bonus rates" for clean energy projects. Congress should not hinge the "bonus rates" on unrelated labor issues that fail to accelerate achievement of GHG reduction strategies.

#  #  #