Depreciation recovery period for certain roof systems

(a)

20–Year recovery period

(1)

In general

Subparagraph (F) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to classification of certain property) is amended to read as follows:

(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 cool roof replacement property.

(2)

Qualified energy-efficient cool roof replacement property

Section 168(e) of such Code is amended by adding at the end the following new paragraph:

(9)

Qualified energy-efficient cool roof replacement property

(A)

In general

The term qualified energy-efficient cool roof replacement property means any roof system— (i)which is placed in service— (I)above conditioned or semiheated space on an eligible commercial building, and (II)after the date of the enactment of this paragraph, (ii)which replaces an existing roof system, (iii)which is a low-slope roof (a slope equal to or less then 2:12), (iv)which includes— (I)insulation which meets or exceeds the minimum prescriptive requirements in tables A–1 to A–9 in the Normative Appendix A of ASHRAE Standard 189.1–2011, and (II)in the case of an eligible commercial building located in a climate zone other than climate zone 6, 7, or 8 (as specified in ASHRAE Standard 189.1–2011), a primary roof covering which has a cool roof surface. (B)

Cool roof surface

The term cool roof surface means a roof the exterior surface of which— (i)has a 3-year-aged solar reflectance of at least 0.55 and a 3-year-aged thermal emittance of at least 0.75, as determined in accordance with the Cool Roof Rating Council CRRC–1 Product Rating Program, or (ii)has a 3-year-aged solar reflectance index (SRI) of at least 64, as determined in accordance with ASTM Standard E1980, determined— (I)using a medium-wind-speed convection coefficient of 12 W/m2·K, and (II)using the values for 3-year-aged solar reflectance and 3-year-aged thermal emittance determined in accordance with the Cool Roof Rating Council CRRC–1 Product Rating Program. (C)

Roof system

The term roof system means a system of roof components, including roof insulation and a membrane or primary roof covering, but not including the roof deck, designed to weather-proof and improve the thermal resistance of a building. (D)

Commercial building

The term commercial building means any building which— (i)is within the scope of ASHRAE Standard 90.1–2010, (ii)is located in the United States, (iii)with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and (iv)was placed in service prior to the roof system replacement. (E)

ASHRAE

The term ASHRAE means the American Society of Heating, Refrigerating and Air-Conditioning Engineers.

(b)

Requirement To use straight line method

Paragraph (3) of section 168(b) of such Code is amended by adding at the end the following new subparagraph:

(J)Any qualified energy-efficient cool roof replacement property.

(c)

Alternative system

The table contained in section 168(g)(3)(B) of such Code is amended by striking the last item and inserting the following new items:

(F)(i)25(F)(ii)27.5.

(d)

Depreciation rules for certain qualified energy-Efficient cool roof replacement property for purposes of computing the earnings and profits of a real estate investment trust

(1)

In general

Paragraph (3) of section 312(k) of such Code is amended by adding at the end the following new subparagraph:

(C)

Treatment of qualified energy efficient cool roof replacement property

In the case of any qualified energy-efficient cool roof replacement property (within the meaning of section 168(e)(9)), the adjustment for depreciation to earnings and profits of a real estate investment trust for any taxable year shall be determined under the alternative depreciation method (within the meaning of section 168(g)(2)), except that the recovery period shall be 20 years.

(2)

Conforming amendment

Subparagraph (A) of section 312(k)(3) of such Code is amended by striking subparagraph (B), and inserting subparagraphs (B) and (C),. (e)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.