,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #beih  ,,in ,,the ,,house ,,of  
,,representatives  ,june #bh1 #bjac ,mr4
 ,langevin 7for himself1 ,mr4           
,blumenauer1 and ,mr4 ,welch7 introduced
 the following bill2 which was referred 
to the ,committee on ,ways and ,means   
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to reduce the   
depreciation recovery periods for energy
 efficient commercial buildings1 and for
 other purposes4  #a4 ,short title ,this
 ,act may be cited as the ,building     
,efficiently ,act of #bjac4  #b4        
,shorter depreciation recovery periods  
for energy efficient buildings  7a7     
#be-,year recovery period for energy    
efficient nonresidential real property  
7#a7 ,in general ,section #afh7;e77#c7  
of the ,internal ,revenue ,code of #aihf
 is amended by inserting after          
subparagraph 7,f7 the following new     
subparagraph3  7,g7 #be-year property   
,the term #be-year property means any   
qualified energy efficient              

nonresidential real property4  4  7#b7  
,qualified energy efficient             
nonresidential real property defined    
,subsection 7i7 of section #afh of such 
,code is amended by adding at the end   
the following3  7#bj7 ,qualified energy 
efficient nonresidential real property  
7,a7 ,in general ,the term qualified    
energy efficient nonresidential real    
property means a building which is      
nonresidential real property which is   
described in subparagraph 7,b71 7,c71 or
 7,d74  7,b7 ,new or reconstructed      
building ,a building is described in    
this subparagraph if--  7i7 the         
certification requirements of           
subparagraph 7,e7 with respect to the   
building are met1  7ii7 the original use
 of the building commences with the     
taxpayer1 and  7iii7 the building is    
placed in service after the date of the 
enactment of this paragraph4  7,c7      
,improvements to existing building ,a   
building is described in this           
subparagraph if1 only after improvements

 are made to the building--  7i7 the    
certification requirements of           
subparagraph 7,e7 with respect to the   
building are met1  7ii7 the original use
 of the improved building commences with
 the taxpayer1  7iii7 the improved      
building is placed in service after the 
date of the enactment of this paragraph1
 and  7iv7 the taxpayer elects to the   
application of this paragraph with      
respect to the building4  7,d7          
,buildings acquired by purchase ,a      
building is described in this           
subparagraph if the building--  7i7 is  
acquired by purchase from an unrelated  
person1  7ii7 meets the certification   
requirements of subparagraph 7,e71 and  
7iii7 is placed in service after the    
date of the enactment of this paragraph4
  7,e7 ,certification requirements ,the 
requirements of this subparagraph are   
met if1 with respect to a building1 the 
building is certified in accordance with
 section #agi;,d7d77#f7 as being        
constructed1 reconstructed1 or          

retrofitted1 as the case may be1 under a
 plan designed to reduce energy and     
power consumption of the building by #dj
 percent or more in comparison to--  7i7
 in the case a retrofits made to an     
existing building1 the baseline annual  
energy and power consumption of the     
building1 or  7ii7 in any other case1 a 
reference building which meets the      
minimum requirements of ,standard       
#ij4a-bjjd using methods of calculation 
under section #agi;,d7d77#b74  7,f7     
,baseline annual energy and power       
consumption ,the baseline annual energy 
and power consumption of any building   
shall be determined by using--  7i7 a   
building energy performance benchmarking
 tool designated for purposes of this   
paragraph by the ,administrator of the  
,environmental ,protection ,agency1     
which is based upon energy and power    
consumption data during the #a-year     
period ending on the date on which      
retrofits under the plan are placed in  
service1 or  7ii7 such other methods of 

calculation as certified by the         
,secretary in accordance with           
#agi;,d7d77#c74  7,g7 ,standard         
#ij4a-bjjd ,the term ,standard          
#ij4a-bjjd means ,standard #ij4a-bjjd of
 the ,american ,society of ,heating1    
,refrigerating1 and ,air ,conditioning  
,engineers and the ,illuminating        
,engineering ,society of ,north ,america
 7as in effect on ,july #cj1 #bjab74    
7,h7 ,related persons ,for purposes of  
subparagraph 7,d71 a person is related  
to another person if--  7i7 the persons 
are members of an affiliated group 7as  
defined in section #aejd71 or  7ii7 the 
persons have a relationship described in
 subsection 7b7 of section #bfg2 except 
that1 for purposes of this clause1 the  
phrase #hj percent or more shall be     
substituted for the phrase more than #ej
 percent each place it appears in such  
subsection and rules similar to the     
rules of subsections 7c7 and 7e7 7other 
than paragraphs 7#d7 and 7#e7 thereof7  
shall apply4  7,i7 ,denial of double    

benefit ,if this section applies to a   
building by reason of subsection        
7e77#c77;,g71 the deduction under       
section #agi;,d shall not be allowed4  4
  7b7 #bj-,year recovery period for     
energy efficient residential rental     
property  7#a7 ,in general ,subparagraph
 7,f7 of section #afh7;e77#c7 of such   
,code 7relating to #bj-year property7 is
 amended to read as follows3  7,f7      
#bj-year property ,the term #bj-year    
property means--  7i7 initial clearing  
and grading land improvements with      
respect to any electric utility         
transmission and distribution plant1 and
  7ii7 any qualified energy efficient   
residential rental property4  4  7#b7   
,qualified energy efficient residential 
rental property defined ,subsection 7i7 
of section #afh of such ,code1 as       
amended by subsection 7a71 is amended by
 adding at the end the following3  7#ba7
 ,qualified energy efficient residential
 rental property  7,a7 ,in general ,the 
term qualified energy efficient         

nonresidential real property means a    
building which is residential rental    
property which is described in          
subparagraph 7,b71 7,c71 or 7,d74  7,b7 
,new or reconstructed building ,a       
building is described in this           
subparagraph if--  7i7 the certification
 requirements of subparagraph 7,e7 with 
respect to the building are met1  7ii7  
the original use of which commences with
 the taxpayer1 and  7iii7 the building  
is placed in service after the date of  
the enactment of this paragraph4  7,c7  
,improvements to existing building ,a   
building is described in this           
subparagraph if1 only after improvements
 are made to the building--  7i7 the    
certification requirements of           
subparagraph 7,e7 with respect to the   
building are met1  7ii7 the original use
 of the improved building commences with
 the taxpayer1  7iii7 the improved      
building is placed in service after the 
date of the enactment of this paragraph1
 and  7iv7 the taxpayer elects to the   

application of this paragraph with      
respect to the building4  7,d7          
,buildings acquired by purchase ,a      
building is described in this           
subparagraph if the building--  7i7 is  
acquired by purchase from an unrelated  
person1  7ii7 meets the certification   
requirements of subparagraph 7,e71 and  
7iii7 is placed in service after the    
date of the enactment of this paragraph4
  7,e7 ,certification requirements ,the 
requirements of this subparagraph are   
met if1 with respect to a building1 the 
building is certified in accordance with
 section #de,l7d7 as being constructed1 
reconstructed1 or retrofitted1 as the   
case may be1 under a plan designed to   
reduce energy and power consumption of  
the building by #dj percent or more in  
comparison to--  7i7 in the case a      
retrofits made to an existing building1 
the baseline annual energy and power    
consumption of the building1 or  7ii7 in
 any other case1 a reference building   
which meets the minimum requirements of 

the ,international ,energy ,conservation
 ,code #bjjd using methods of           
calculation under section #de,l7d74     
7,f7 ,baseline annual energy and power  
consumption ,the baseline annual energy 
and power consumption of any building   
shall be determined by using--  7i7 a   
building energy performance benchmarking
 tool designated for purposes of this   
paragraph by the ,administrator of the  
,environmental ,protection ,agency1     
which is based upon energy and power    
consumption data during the #a-year     
period ending on the date on which      
retrofits under the plan are placed in  
service1 or  7ii7 such other methods of 
calculation as certified by the         
,secretary in accordance with #de,l7d74 
7,g7 ,related persons ,for purposes of  
subparagraph 7,d71 a person is related  
to another person if--  7i7 the persons 
are members of an affiliated group 7as  
defined in section #aejd71 or  7ii7 the 
persons have a relationship described in
 subsection 7b7 of section #bfg2 except 

that1 for purposes of this clause1 the  
phrase #hj percent or more shall be     
substituted for the phrase more than #ej
 percent each place it appears in such  
subsection and rules similar to the     
rules of subsections 7c7 and 7e7 7other 
than paragraphs 7#d7 and 7#e7 thereof7  
shall apply4  7,h7 ,denial of double    
benefit ,if this section applies to a   
building by reason of subsection        
7e77#c77;,f77ii71 the deduction under   
section #agi;,d shall not be allowed4  4
  7c7 ,conforming amendments  7#a7 ,the 
table contained in section #afh7;c7 of  
such ,code is amended by inserting after
 the item relating to #bj-year property 
the following new item3  #be-year       
property#be years  4  7#b7 ,the table   
contained in section #dfg7;e77#c77;,a7  
of such ,code is amended--  7,a7 by     
inserting which is not #be-year property
 after nonresidential real property1 and
  7,b7 by inserting after the item      
relating to residential rental property 
and nonresidential real property the    

following new item3  #be-year           
property#ai years4  4  7#c7 ,clauses    
7iv71 7v71 and 7ix7 of section          
#afh7;e77#c77;,e7 of such ,code are each
 amended by inserting 7not described in 
subparagraph 7,g77 after property4  7d7 
,requirement ,to use straight line      
method ,paragraph 7#c7 of section       
#afh7;b7 of such ,code 7relating to     
property to which straight line method  
applies7 is amended by redesignating    
subparagraphs 7,f71 7,g71 7,h71 and 7,i7
 as subparagraphs 7,g71 7,h71 7,i71 and 
7,j71 respectively1 and by inserting    
after subparagraph 7,e7 the following   
new subparagraph3  7,f7 ,property       
described in subsection 7e77#c77;,f77ii7
 or subsection 7e77#c77;,g74  4  7e7    
,alternative system ,the table contained
 in section #afh7;g77#c77;,b7 of such   
,code is amended by striking the item   
relating to subparagraph 7,f7 and       
inserting the following new items3      
7,f77i7#be   7,f77ii7#bj   7,g7#be  4   
7f7 ,effective ,date ,the amendments    

made by this section shall apply to     
property placed in service after        
,december #ca1 #bjab4