Building Efficiently Act of 2013

“(G) 25-year property—The term 25-year property means any qualified energy efficient nonresidential real property.”

“(20) Qualified energy efficient nonresidential real property

“(A) In general—The term qualified energy efficient nonresidential real property means a building which is nonresidential real property which is described in subparagraph (B), (C), or (D).

“(B) New or reconstructed building—A building is described in this subparagraph if—

“(i) the certification requirements of subparagraph (E) with respect to the building are met,

“(ii) the original use of the building commences with the taxpayer, and

“(iii) the building is placed in service after the date of the enactment of this paragraph.

“(C) Improvements to existing building—A building is described in this subparagraph if, only after improvements are made to the building—

“(i) the certification requirements of subparagraph (E) with respect to the building are met,

“(ii) the original use of the improved building commences with the taxpayer,

“(iii) the improved building is placed in service after the date of the enactment of this paragraph, and

“(iv) the taxpayer elects to the application of this paragraph with respect to the building.

“(D) Buildings acquired by purchase—A building is described in this subparagraph if the building—

“(i) is acquired by purchase from an unrelated person,

“(ii) meets the certification requirements of subparagraph (E), and

“(iii) is placed in service after the date of the enactment of this paragraph.

“(E) Certification requirements—The requirements of this subparagraph are met if, with respect to a building, the building is certified in accordance with section 179D(d)(6) as being constructed, reconstructed, or retrofitted, as the case may be, under a plan designed to reduce energy and power consumption of the building by 40 percent or more in comparison to—

“(i) in the case a retrofits made to an existing building, the baseline annual energy and power consumption of the building, or

“(ii) in any other case, a reference building which meets the minimum requirements of Standard 90.1–2004 using methods of calculation under section 179D(d)(2).

“(F) Baseline annual energy and power consumption—The baseline annual energy and power consumption of any building shall be determined by using—

“(i) a building energy performance benchmarking tool designated for purposes of this paragraph by the Administrator of the Environmental Protection Agency, which is based upon energy and power consumption data during the 1-year period ending on the date on which retrofits under the plan are placed in service, or

“(ii) such other methods of calculation as certified by the Secretary in accordance with 179D(d)(3).

“(G) Standard 90.1–2004—The term Standard 90.1–2004 means Standard 90.1–2004 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on July 30, 2012).

“(H) Related persons—For purposes of subparagraph (D), a person is related to another person if—

“(i) the persons are members of an affiliated group (as defined in section 1504), or

“(ii) the persons have a relationship described in subsection (b) of section 267; except that, for purposes of this clause, the phrase “80 percent or more” shall be substituted for the phrase “more than 50 percent” each place it appears in such subsection and rules similar to the rules of subsections (c) and (e) (other than paragraphs (4) and (5) thereof) shall apply.

“(I) Denial of double benefit—If this section applies to a building by reason of subsection (e)(3)(G), the deduction under section 179D shall not be allowed.”

“(F) 20-year property—The term 20-year property means—

“(i) initial clearing and grading land improvements with respect to any electric utility transmission and distribution plant, and

“(ii) any qualified energy efficient residential rental property.”

“(21) Qualified energy efficient residential rental property

“(A) In general—The term qualified energy efficient nonresidential real property means a building which is residential rental property which is described in subparagraph (B), (C), or (D).

“(B) New or reconstructed building—A building is described in this subparagraph if—

“(i) the certification requirements of subparagraph (E) with respect to the building are met,

“(ii) the original use of which commences with the taxpayer, and

“(iii) the building is placed in service after the date of the enactment of this paragraph.

“(C) Improvements to existing building—A building is described in this subparagraph if, only after improvements are made to the building—

“(i) the certification requirements of subparagraph (E) with respect to the building are met,

“(ii) the original use of the improved building commences with the taxpayer,

“(iii) the improved building is placed in service after the date of the enactment of this paragraph, and

“(iv) the taxpayer elects to the application of this paragraph with respect to the building.

“(D) Buildings acquired by purchase—A building is described in this subparagraph if the building—

“(i) is acquired by purchase from an unrelated person,

“(ii) meets the certification requirements of subparagraph (E), and

“(iii) is placed in service after the date of the enactment of this paragraph.

“(E) Certification requirements—The requirements of this subparagraph are met if, with respect to a building, the building is certified in accordance with section 45L(d) as being constructed, reconstructed, or retrofitted, as the case may be, under a plan designed to reduce energy and power consumption of the building by 40 percent or more in comparison to—

“(i) in the case a retrofits made to an existing building, the baseline annual energy and power consumption of the building, or

“(ii) in any other case, a reference building which meets the minimum requirements of the International Energy Conservation Code 2004 using methods of calculation under section 45L(d).

“(F) Baseline annual energy and power consumption—The baseline annual energy and power consumption of any building shall be determined by using—

“(i) a building energy performance benchmarking tool designated for purposes of this paragraph by the Administrator of the Environmental Protection Agency, which is based upon energy and power consumption data during the 1-year period ending on the date on which retrofits under the plan are placed in service, or

“(ii) such other methods of calculation as certified by the Secretary in accordance with 45L(d).

“(G) Related persons—For purposes of subparagraph (D), a person is related to another person if—

“(i) the persons are members of an affiliated group (as defined in section 1504), or

“(ii) the persons have a relationship described in subsection (b) of section 267; except that, for purposes of this clause, the phrase “80 percent or more” shall be substituted for the phrase “more than 50 percent” each place it appears in such subsection and rules similar to the rules of subsections (c) and (e) (other than paragraphs (4) and (5) thereof) shall apply.

“(H) Denial of double benefit—If this section applies to a building by reason of subsection (e)(3)(F)(ii), the deduction under section 179D shall not be allowed.”