Energy Efficient Commercial Buildings Act of 2021

Energy Efficient Commercial Buildings Act of 2021

This bill temporarily modifies the tax deduction for energy efficient commercial buildings for taxable years beginning after December 31, 2021, and before January 1, 2032. Among other provisions, the bill provides for a lower (25%) reduction of annual energy and power costs for certain energy systems, revises the maximum amount of the deduction, and allows an alternative deduction for costs relating to energy efficient retrofit building property.

The Energy Efficient Commercial Buildings Act of 2021, also known as Bill 117 HR 5181, is a piece of legislation introduced in the US Congress aimed at promoting energy efficiency in commercial buildings. The bill seeks to incentivize building owners to invest in energy-efficient technologies and practices by providing tax deductions for qualifying improvements.

Under the provisions of the bill, building owners who make energy-efficient upgrades to their commercial properties, such as installing energy-efficient lighting, heating, ventilation, and air conditioning systems, or improving insulation, would be eligible for a tax deduction. The amount of the deduction would be based on the energy savings achieved through the improvements.

The Energy Efficient Commercial Buildings Act of 2021 is designed to not only reduce energy consumption and lower utility costs for building owners but also to help reduce greenhouse gas emissions and combat climate change. By encouraging the adoption of energy-efficient technologies in commercial buildings, the bill aims to promote sustainability and environmental stewardship in the business sector. Overall, the Energy Efficient Commercial Buildings Act of 2021 represents a bipartisan effort to address the pressing issue of energy efficiency in commercial buildings and promote a more sustainable future for the United States.