by Brianna Crandall — January 1, 2016—The American Institute of Architects (AIA) issued statements in recent weeks in response to the U.S. Congress’s two-year extension of the 179D tax deduction and the U.S. House of Representatives’ passing of the North American Energy Security and Infrastructure Act of 2015.
Two-year extension of the 179D tax deduction
AIA President Russell Davidson, FAIA, 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:
“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.”
North American Energy Security and Infrastructure Act of 2015
AIA President Elizabeth Chu Richter, FAIA, earlier issued the following statement after the House of Representatives passed the North American Energy Security and Infrastructure Act of 2015. The legislation repeals targets set to reduce fossil fuel consumption for federal buildings in Section 433 of the Energy Independence and Security Act of 2007, which was passed by Congress and signed into law by then-President George W. Bush.
“Cutting fossil fuel consumption in new and renovated federal buildings by 2030 is clearly something we can achieve as a nation. My fellow architects are already designing buildings that are “net zero” consumers of energy. According to the AIA 2030 Commitment report, architects now have almost 200 net-zero energy building projects underway across the country, a 270 percent increase in just over two years.
“By voting to kill requirements to reduce fossil fuel consumption in federal buildings, the House has abrogated its role in making the U. S. government a global leader in sustainability by the year 2030. This move will continue to hold federal taxpayers hostage to the whims of global energy markets.
“As we have said previously, our 86,000 member architects are ready to support legislation that keeps energy conservation and fossil fuel reduction goals in place for the federal government and positions the United States as a leader globally in conserving resources.
“We are heartened by the White House’s announcement that the President would veto this legislation, specifically citing the repeal of Section 433 as one of several major objections. We will continue to oppose legislation that only encourages use of fossil fuels at great cost to taxpayers, not to mention the environment.”
