,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hicj ,,in ,,the ,,house ,,of ,,representatives ,december #i1 #bjbj,mr4 ,schneider 7for himself and ,mr4 ,rice of ,south ,carolina7 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 allow #aj-year straight line depreciation for energy efficient qualified improvement property1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,energy ,efficient ,qualified ,improvement ,property ,act of #bjbj or the ,e-,,quip ,act4 #b4 ,depreciation of energy efficient qualified improvement property 7a7 #aj-,year property ,section #afh7;e77#c77;,d7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7iii71 by striking the period at the end of clause 7iv7 and inserting 1 and1 and by adding at the end the following new clause3 7vi7 energy efficient qualified improvement property4 4 7b7 ,straight line method ,section #afh7;b77#c7 of such ,code is amended by adding at the end the following new subparagraph3 7,h7 ,energy efficient qualified improvement property described in subsection 7e77#g74 4 7c7 ,energy efficient qualified improvement property defined ,section #afh7;e7 of such ,code is amended by adding at the end the following new paragraph3 7#g7 ,energy efficient qualified improvement property 7,a7 ,in general ,the term energy efficient qualified improvement property means any improvement-- 7i7 to a building which is nonresidential real property1 or multifamily residential rental property1 first placed in service more than #aj years before the date of the enactment of this subparagraph1 7ii7 which is installed as part of-- 7,i7 the lighting system1 7,,ii7 the heating1 cooling1 ventilation1 or hot water systems1 or 7,,iii7 the building envelope1 7iii7 which meets the performance requirements of subparagraph 7,b71 7iv7 which1 in the case of an improvement described in subclause 7,i7 or 7,,ii7 of clause 7ii7-- 7,i7 is audited1 commissioned1 or managed by a professional with a credential that is recognized by the ,department of ,energy through its ,better ,buildings ,workforce ,guidelines1 and 7,,ii7 is subject to an ongoing operations and maintenance plan under such certification during the applicable recovery period1 7v7 which1 in the case of an improvement described in clause 7ii77,,iii71 the design and installation has been completed1 observed1 or approved by an individual qualified by industry-recognized professional credential programs in building envelope quality assurance1 as identified by the ,secretary of ,energy 7following an opportunity for1 and consideration of1 public input71 and 7vi7 which is placed in service before ,january #a1 #bjbf1 and 7vii7 with respect to which the taxpayer elects the application of this subparagraph4 7,b7 ,performance requirements ,an improvement meets the performance requirements of this subparagraph if-- 7i7 in the case of lighting1 it meets the lighting power allowances1 densities1 and control specifications in the prescriptive option of the ,international ,green ,construction ,code 7#bjah71 7ii7 in the case of a unitary air-cooled air conditioner1 it meets or exceeds ,consortium for ,energy ,efficiency ,tier #b1 as in effect on ,january #a1 #bjai1 7iii7 in the case of a unitary water-cooled and evaporatively cooled air conditioner1 it meets or exceeds ,consortium for ,energy ,efficiency ,tier #a1 as in effect on ,january #a1 #bjai1 7iv7 in the case of a unitary heat pump-- 7,i7 with a capacity of less than #fe1jjj ,btu per hour1 it meets or exceeds ,consortium for ,energy ,efficiency ,tier #b1 as in effect on ,january #a1 #bjai1 or 7,,ii7 with a capacity of #fe1jjj ,btu per hour or greater1 it meets or exceeds ,consortium of ,energy ,efficiency ,tier #a1 as in effect on ,january #a1 #bjai1 7v7 in the case of a variable refrigerant flow multisplit air conditioner or variable refrigerant flow multisplit heat pump-- 7,i7 with a capacity of less than #fe1jjj ,btu per hour1 it meets or exceeds ,consortium for ,energy ,efficiency ,tier #b1 as in effect on ,january #ab1 #bjaf1 or 7,,ii7 with a capacity of #fe1jjj ,btu per hour or greater1 it meets or exceeds ,consortium of ,energy ,efficiency ,tier #a1 as in effect on ,january #ab1 #bjaf1 7vi7 in the case of a boiler1 it meets or exceeds ,consortium for ,energy ,efficiency ,tier #a1 as in effect on ,september #a1 #bjae1 7vii7 in the case of a hot water heater-- 7,i7 that is gas-fired1 it meets or exceeds ,consortium of ,energy ,efficiency ,tier #a1 as in effect on ,june #e1 #bjab1 or 7,,ii7 that runs on electricity1 it has a ,coefficient of ,performance of #c or more1 7viii7 in the case of a water-cooled centrifugal chiller package1 it meets the prescriptive option of the ,international ,green ,construction ,code 7#bjah71 7ix7 in the case of insulation for heating and cooling supply and return ducts1 it meets the prescriptive option for duct insulation of the ,international ,green ,construction ,code 7#bjah7 and its applicable ,normative ,appendix1 7x7 in the case of roofing1 walls1 and associated insulation1 it meets the prescriptive option for building envelope opaque elements of the ,international ,green ,construction ,code 7#bjah7 and its applicable ,normative ,appendix1 7xi7 in the case of windows and skylights1 they meet the prescriptive option for building envelope fenestration and skylights of the ,international ,green ,construction ,code 7#bjah7 and its applicable ,normative ,appendix1 7xii7 in the case of sensors and controls1 it is a device that automatically controls the operation of other qualified equipment without manual operation of a switch1 using technology such as motion or occupancy detection1 infrared1 ultrasonic1 microwave1 audio-based1 image-processing1 temperature1 humidity1 time-scheduling1 bi-level1 or demand-response1 and 7xiii7 in the case of a variable speed or frequency drive1 it is a drive-- 7,i7 added to adjust the speed and torque of an operational motor that powers pump1 fan1 exhaust1 ventilation1 air-handling1 or compressor equipment1 and 7,,ii7 controlled automatically by a building automation system1 process control system1 or local controller driven by differential pressure flow1 temperature or another variable signal4 4 7d7 ,alternative depreciation system ,the table in section #afh7;g77#c77;,b7 of such ,code is amended by inserting after the item relating to subparagraph 7,d77v7 the following new item3 7,d77vi7#aj 4 7e7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjbj4 #c4 ,report relating to depreciation of energy efficient qualified improvement property 7a7 ,in general ,not later than #cj days after the date that is #c years after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,energy1 shall submit to ,congress a report on energy efficient qualified improvement property 7as defined in section #afh7;e77#g7 of the ,internal ,revenue ,code of #aihf74 7b7 ,contents ,such report shall include the following3 7#a7 ,the number of times over such #c-year period energy efficient qualified improvement property was placed in service and treated as #aj-year property under section #afh7;e77#c77;,d7 of such ,code4 7#b7 ,a summary of the types of such energy efficient qualified improvement property placed in service during such period4 7#c7 ,an estimate of the energy use savings1 and reduction in greenhouse gas emissions1 attributable to such property4 7#d7 ,an estimate of the number of jobs created which are attributable to the enactment of the ,energy ,efficient ,qualified ,improvement ,property ,act of #bjbj4 7#e7 ,any recommendations for updated efficiency requirements for energy efficient qualified improvement property or rules for the depreciation thereof4