[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3591 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3591

 To amend the Internal Revenue Code of 1986 to improve and extend the 
 deduction for new and existing energy-efficient commercial buildings, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 20, 2012

 Ms. Snowe (for herself, Mr. Bingaman, Mrs. Feinstein, and Mr. Cardin) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to improve and extend the 
 deduction for new and existing energy-efficient commercial buildings, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Commercial 
Building Modernization Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY-EFFICIENT 
              COMMERCIAL BUILDINGS.

    (a) Extension.--
            (1) Through 2016.--Subsection (h) of section 179D is 
        amended by striking ``December 31, 2013'' and inserting 
        ``December 31, 2016''.
            (2) Inclusion of multifamily buildings.--
                    (A) In general.--Subparagraph (B) of section 
                179D(c)(1) is amended by striking ``building'' and 
                inserting ``commercial building or multifamily 
                building''.
                    (B) Definitions.--Subsection (c) of section 179D is 
                amended by adding at the end the following new 
                paragraphs:
            ``(3) Commercial building.--The term `commercial building' 
        means a building with a primary use or purpose other than as 
        residential housing.
            ``(4) Multifamily building.--The term `multifamily 
        building' means a structure of 5 or more dwelling units with a 
        primary use as residential housing, and includes such buildings 
        owned and operated as a condominium, cooperative, or other 
        common interest community.''.
            (3) Inclusion of property located in possessions or 
        territories.--Clause (i) of section 179D(c)(1)(B) is amended by 
        inserting ``or any possession or territory thereof'' after 
        ``United States''.
    (b) Increase in Maximum Amount of Deduction.--
            (1) In general.--Subparagraph (A) of section 179D(b)(1) is 
        amended by striking ``$1.80'' and inserting ``$3.00''.
            (2) Partial allowance.--Paragraph (1) of section 179D(d) is 
        amended to read as follows:
            ``(1) Partial allowance.--
                    ``(A) In general.--Except as provided in subsection 
                (f), if--
                            ``(i) the requirement of subsection 
                        (c)(1)(D) is not met, but
                            ``(ii) there is a certification in 
                        accordance with paragraph (6) that--
                                    ``(I) any system referred to in 
                                subsection (c)(1)(C) satisfies the 
                                energy-savings targets established by 
                                the Secretary under subparagraph (B) 
                                with respect to such system, or
                                    ``(II) the systems referred to in 
                                subsection (c)(1)(C)(ii) and subsection 
                                (c)(1)(C)(iii) together satisfy the 
                                energy-savings targets established by 
                                the Secretary under subparagraph (B) 
                                with respect to such systems,
                then the requirement of subsection (c)(1)(D) shall be 
                treated as met with respect to such system or systems, 
                and the deduction under subsection (a) shall be allowed 
                with respect to energy-efficient commercial building 
                property installed as part of such system and as part 
                of a plan to meet such targets, except that subsection 
                (b) shall be applied to such property described in 
                clause (ii)(I) by substituting `$1.00' for `$3.00' and 
                to such property described in clause (ii)(II) by 
                substituting `$2.20' for `$3.00'.
                    ``(B) Regulations.--
                            ``(i) In general.--The Secretary, after 
                        consultation with the Secretary of Energy, 
                        shall promulgate regulations establishing a 
                        target for each system described in subsection 
                        (c)(1)(C) which, if such targets were met for 
                        all such systems, the property would meet the 
                        requirements of subsection (c)(1)(D).
                            ``(ii) Safe harbor for combined systems.--
                        The Secretary, after consultation with the 
                        Secretary of Energy, and not later than 6 
                        months after the date of the enactment of the 
                        Commercial Building Modernization Act, shall 
                        promulgate regulations regarding combined 
                        envelope and mechanical system performance that 
                        detail appropriate components, efficiency 
                        levels, or other relevant information for the 
                        systems referred to in subsection 
                        (c)(1)(C)(iii) and subsection (c)(1)(C)(iv) 
                        together to be deemed to have achieved two-
                        thirds of the requirements of subsection 
                        (c)(1)(D).''.
    (c) Denial of Double Benefit Rules.--
            (1) In general.--Section 179D is amended by redesignating 
        subsections (g) and (h) as subsections (h) and (i), 
        respectively, and by inserting after subsection (f) the 
        following new subsection:
    ``(g) Tax Incentives Not Available.--Energy-efficient measures for 
which a deduction is allowed under this section shall not be eligible 
for a deduction under section 179F.''.
            (2) Low-income housing exception to basis reduction.--
        Subsection (e) of section 179D is amended by inserting ``(other 
        than property placed in service in a qualified low-income 
        building (within the meaning of section 42))'' after ``building 
        property''.
    (d) Allocation of Deduction.--Section 179D, as amended by 
subsection (c)(1), is amended by redesignating subsection (i) as 
subsection (j) and by inserting after subsection (h) the following new 
subsection:
    ``(i) Allocation of Deduction.--Not later than 180 days after the 
date of the enactment of this subsection, the Secretary, in 
consultation with the Secretary of Energy, shall promulgate a 
regulation to allow the owner of a commercial building, including a 
non-profit, to allocate any deduction allowed under this section, or a 
portion thereof, to the person primarily responsible for funding, 
financing, designing, leasing, operating, or placing in service energy-
efficient measures. Such person shall be treated as the taxpayer for 
purposes of this section and shall include a building tenant, 
financier, architect, professional engineer, licensed contractor, 
energy services company, or other building professional. In the case of 
a commercial building that is owned by a Federal, State, or local 
government or a subdivision thereof, Internal Revenue Notice 2006-52, 
as amplified by Notice 2008-40, shall apply to any allocation.''.
    (e) Earnings and Profits Conformity for Real Estate Investment 
Trusts.--Subparagraph (B) of section 312(k)(3) is amended--
            (1) by striking ``.--For purposes of'' and inserting ``.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), for purposes of'', and
            (2) by adding at the end the following new clause:
                            ``(ii) Earnings and profits conformity for 
                        real estate investment trusts.--
                                    ``(I) In general.--For purposes of 
                                computing the earnings and profits of a 
                                real estate investment trust (other 
                                than a captive real estate investment 
                                trust), the entire amount deductible 
                                under section 179D shall be allowed as 
                                deductions in the taxable years for 
                                which such amounts are claimed under 
                                such section.
                                    ``(II) Captive real estate 
                                investment trust.--The term `captive 
                                real estate investment trust' means a 
                                real estate investment trust the shares 
                                or beneficial interests of which are 
                                not regularly traded on an established 
                                securities market and more than 50 
                                percent of the voting power or value of 
                                the beneficial interests or shares of 
                                which are owned or controlled, directly 
                                or indirectly, or constructively, by a 
                                single entity that is treated as an 
                                association taxable as a corporation 
                                under this title and is not exempt from 
                                taxation pursuant to the provisions of 
                                section 501(a).
                                    ``(III) Rules of application.--For 
                                purposes of this clause, the 
                                constructive ownership rules of section 
                                318(a), as modified by section 
                                856(d)(5), shall apply in determining 
                                the ownership of stock, assets, or net 
                                profits of any person, and the 
                                following entities are not considered 
                                an association taxable as a 
                                corporation:
                                            ``(aa) Any real estate 
                                        investment trust other than a 
                                        captive real estate investment 
                                        trust.
                                            ``(bb) Any qualified real 
                                        estate investment trust 
                                        subsidiary under section 856, 
                                        other than a qualified REIT 
                                        subsidiary of a captive real 
                                        estate investment trust.
                                            ``(cc) Any Listed 
                                        Australian Property Trust 
                                        (meaning an Australian unit 
                                        trust registered as a `Managed 
                                        Investment Scheme' under the 
                                        Australian Corporations Act in 
                                        which the principal class of 
                                        units is listed on a recognized 
                                        stock exchange in Australia and 
                                        is regularly traded on an 
                                        established securities market), 
                                        or an entity organized as a 
                                        trust, provided that a Listed 
                                        Australian Property Trust owns 
                                        or controls, directly or 
                                        indirectly, 75 percent or more 
                                        of the voting power or value of 
                                        the beneficial interests or 
                                        shares of such trust.
                                            ``(dd) Any corporation, 
                                        trust, association, or 
                                        partnership organized outside 
                                        the laws of the United States 
                                        and which satisfies the 
                                        criteria described in subclause 
                                        (IV).
                                    ``(IV) Criteria.--The criteria 
                                described in this subclause are as 
                                follows:
                                            ``(aa) At least 75 percent 
                                        of the entity's total asset 
                                        value at the close of its 
                                        taxable year is represented by 
                                        real estate assets (as defined 
                                        in section 856(c)(5)(B)), cash 
                                        and cash equivalents, and 
                                        United States Government 
                                        securities.
                                            ``(bb) The entity is not 
                                        subject to tax on amounts 
                                        distributed to its beneficial 
                                        owners, or is exempt from 
                                        entity-level taxation.
                                            ``(cc) The entity 
                                        distributes at least 85 percent 
                                        of its taxable income (as 
                                        computed in the jurisdiction in 
                                        which it is organized) to the 
                                        holders of its shares or 
                                        certificates of beneficial 
                                        interest on an annual basis.
                                            ``(dd) Not more than 10 
                                        percent of the voting power or 
                                        value in such entity is held 
                                        directly or indirectly or 
                                        constructively by a single 
                                        entity or individual, or the 
                                        shares or beneficial interests 
                                        of such entity are regularly 
                                        traded on an established 
                                        securities market.
                                            ``(ee) The entity is 
                                        organized in a country which 
                                        has a tax treaty with the 
                                        United States.''.
    (f) Updated Standards.--
            (1) Initial update.--
                    (A) In general.--Section 179D is amended by 
                striking ``90.1-2001'' each place it appears in 
                subsections (c) and (f) and inserting ``90.1-2004''.
                    (B) Conforming amendment.--Paragraph (2) of section 
                179D(c) is amended by striking ``(as in effect on April 
                2, 2003)''.
            (2) Second update.--
                    (A) In general.--Section 179D is amended by 
                striking ``90.1-2004'' each place it appears in 
                subsections (c) and (f) and inserting ``90.1-2007''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply to property placed in 
                service after December 31, 2014.
    (g) Treatment of Lighting Systems.--Section 179D is amended by 
striking ``interior'' each place it appears in subsections (c)(1) and 
(f)(1).
    (h) Voluntary Reporting Program.--Section 179D, as amended by 
subsection (d), is amended by redesignating subsection (j) as 
subsection (k) and by inserting after subsection (i) the following new 
subsection:
    ``(i) Voluntary Reporting Program.--For purposes of the report 
required under section 179F(k), the Secretary, in consultation with the 
Secretary of Energy, shall develop a voluntary program to provide 
energy consumption data from recipients and current tenants of 
buildings that received full deductions under this section.''.
    (i) Effective Date.--Except as otherwise provided, the amendments 
made by this section shall apply to property placed in service in 
taxable years beginning after the date of the enactment of this Act.

SEC. 3. DEDUCTION FOR RETROFITS OF EXISTING COMMERCIAL AND MULTIFAMILY 
              BUILDINGS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179E the following new section:

``SEC. 179F. DEDUCTION FOR RETROFITS OF EXISTING COMMERCIAL AND 
              MULTIFAMILY BUILDINGS.

    ``(a) Allowance of Deduction.--With respect to each certified 
retrofit plan, there shall be allowed as a deduction an amount equal to 
the lesser of--
            ``(1) the sum of--
                    ``(A) the design deduction, and
                    ``(B) the realized deduction, or
            ``(2) 50 percent of the total cost to develop and implement 
        such certified retrofit plan.
    ``(b) Deduction Amounts.--For purposes of this section--
            ``(1) Design deduction.--A design deduction shall be--
                    ``(A) based on projected source energy savings as 
                calculated in accordance with subsection (c)(3)(B),
                    ``(B) correlated to the percent of source energy 
                savings set forth in the general scale in paragraph 
                (3)(A) that a certified retrofit plan is projected to 
                achieve when energy-efficient measures are placed in 
                service, and
                    ``(C) equal to 60 percent of the amount allowed 
                under the general scale.
            ``(2) Realized deduction.--
                    ``(A) In general.--A realized deduction shall be--
                            ``(i) based on realized source energy 
                        savings as calculated in accordance with 
                        subsection (c)(3)(C),
                            ``(ii) correlated to the percent of source 
                        energy savings set forth in the general scale 
                        in paragraph (3)(A) as realized by a certified 
                        retrofit plan, and
                            ``(iii) equal to 40 percent of the amount 
                        allowed under the general scale.
                    ``(B) Adjustment of source energy savings.--The 
                percent of source energy savings for purposes of any 
                realized deduction may vary from such savings projected 
                when energy-efficient measures were placed in service 
                for purposes of a design deduction under paragraph (1).
            ``(3) General scale.--
                    ``(A) In general.--The scale for deductions allowed 
                under this section shall be--
                            ``(i) $1.00 per square foot of retrofit 
                        floor area for 20 to 24 percent source energy 
                        savings,
                            ``(ii) $1.50 per square foot of retrofit 
                        floor area for 25 to 29 percent source energy 
                        savings,
                            ``(iii) $2.00 per square foot of retrofit 
                        floor area for 30 to 34 percent source energy 
                        savings,
                            ``(iv) $2.50 per square foot of retrofit 
                        floor area for 35 to 39 percent source energy 
                        savings,
                            ``(v) $3.00 per square foot of retrofit 
                        floor area for 40 to 44 percent source energy 
                        savings,
                            ``(vi) $3.50 per square foot of retrofit 
                        floor area for 45 to 49 percent source energy 
                        savings, and
                            ``(vii) $4.00 per square foot of retrofit 
                        floor area for 50 percent or more source energy 
                        savings.
                    ``(B) Historic buildings.--With respect to energy-
                efficient measures placed in service as part of a 
                certified retrofit plan in a commercial building or 
                multifamily building on or eligible for the National 
                Register of Historic Places, the respective dollar 
                amounts set forth in the general scale under 
                subparagraph (A) shall each be increased by 20 percent, 
                for the purposes of calculating any applicable design 
                deduction and realized deduction.
    ``(c) Calculation of Energy Savings.--
            ``(1) In general.--For purposes of the design deduction and 
        the realized deduction, source energy savings shall be 
        calculated with reference to a baseline of the annual source 
        energy consumption of the commercial or multifamily building 
        before energy-efficient measures were placed in service.
            ``(2) Baseline benchmark.--The baseline under paragraph (1) 
        shall be determined using a building energy performance 
        benchmarking tool designated by the Administrator of the 
        Environmental Protection Agency, and based upon 1 year of 
        source energy consumption data prior to the date upon which the 
        energy-efficient measures are placed in service.
            ``(3) Design and realized source energy savings.--
                    ``(A) In general.--In certifying a retrofit plan as 
                a certified retrofit plan, a professional engineer 
                shall calculate source energy savings by utilizing the 
                baseline benchmark defined in paragraph (2) and 
                determining percent improvements from such baseline.
                    ``(B) Design deduction.--For purposes of claiming a 
                design deduction, the regulations issued under 
                subsection (f)(1) shall prescribe the standards and 
                process for a professional engineer to calculate and 
                certify source energy savings projected from the design 
                of a certified retrofit plan as of the date energy-
                efficient measures are placed in service.
                    ``(C) Realized deduction.--For purposes of claiming 
                a realized deduction, a professional engineer shall 
                calculate and certify source energy savings realized by 
                a certified retrofit plan 2 years after a design 
                deduction is allowed by utilizing energy consumption 
                data after energy-efficient measures are placed in 
                service, and adjusting for climate, building occupancy 
                hours, density, or other factors deemed appropriate in 
                the benchmarking tool designated under paragraph (2).
    ``(d) Certified Retrofit Plan and Other Definitions.--For purposes 
of this section--
            ``(1) Certified retrofit plan.--The term `certified 
        retrofit plan' means a plan that--
                    ``(A) is designed to reduce the annual source 
                energy costs of a commercial building, or a multifamily 
                building, through the installation of energy-efficient 
                measures,
                    ``(B) is certified under penalty of perjury by a 
                registered professional engineer, who is not a direct 
                employee of the owner of the commercial building or 
                multifamily building that is the subject of the plan, 
                and is licensed in the State in which such building is 
                located,
                    ``(C) describes the square footage of retrofit 
                floor area covered by such a plan,
                    ``(D) specifies that it is designed to achieve a 
                final source energy usage intensity after energy-
                efficient measures are placed in service in a 
                commercial building or a multifamily building that does 
                not exceed on a square foot basis the average level of 
                energy usage intensity of other similar buildings,
                    ``(E) requires that after the energy-efficient 
                measures are placed in service, the commercial building 
                or multifamily building meets the applicable State and 
                local new building code requirements for the area in 
                which such building is located,
                    ``(F) satisfies the regulations prescribed under 
                subsection (f), and
                    ``(G) is submitted to the Secretary of Energy after 
                energy-efficient measures are placed in service, for 
                the purpose of informing the report to Congress 
                required by subsection (l).
        The standard under subparagraph (D) shall be 300,000 British 
        thermal units or less per square foot unless the Secretary, in 
        consultation with the Administrator of the Environmental 
        Protection Agency, develops distinct minimum standards for a 
        particular category or subcategory of building based on the 
        best available information used by the ENERGY STAR program.
            ``(2) Commercial building.--
                    ``(A) In general.--The term `commercial building' 
                means a building located in the United States or any 
                possession or territory thereof--
                            ``(i) that is in existence and occupied on 
                        the date of the enactment of this section,
                            ``(ii) for which a certificate of occupancy 
                        has been issued at least 10 years before energy 
                        efficiency measures are placed in service, and
                            ``(iii) with a primary use or purpose other 
                        than as residential housing.
                    ``(B) Shopping centers.--In the case of a retail 
                shopping center, the term `commercial building' shall 
                include an area within such building that is--
                            ``(i) 50,000 square feet or larger that is 
                        covered by a separate utility grade meter to 
                        record energy consumption in such area, and
                            ``(ii) under the day-to-day management and 
                        operation of--
                                    ``(I) the owner of such building as 
                                common space areas, or
                                    ``(II) a retail tenant, lessee, or 
                                other occupant.
            ``(3) Energy-efficient measures.--The term `energy-
        efficient measures' means a measure, or combination of 
        measures, placed in service through a certified retrofit plan--
                    ``(A) on or in a commercial building or multifamily 
                building,
                    ``(B) as part of--
                            ``(i) the lighting systems,
                            ``(ii) the heating, cooling, ventilation, 
                        or hot water systems,
                            ``(iii) the building envelope, which may 
                        include an energy-efficient cool roof,
                            ``(iv) a continuous commissioning contract, 
                        or
                            ``(v) building operations or monitoring 
                        systems, and
                    ``(C) including equipment, materials, and systems 
                within subparagraph (B) with respect to which 
                depreciation (or amortization in lieu of depreciation) 
                is allowed.
            ``(4) Energy savings.--The term `energy savings' means 
        source energy usage intensity reduced on a per square foot 
        basis through design and implementation of a certified retrofit 
        plan.
            ``(5) Multifamily building.--The term `multifamily 
        building'--
                    ``(A) means--
                            ``(i) a structure of 5 or more dwelling 
                        units located in the United States or any 
                        possession or territory thereof--
                                    ``(I) that is in existence and 
                                occupied on the date of the enactment 
                                of this section,
                                    ``(II) for which a certificate of 
                                occupancy has been issued at least 10 
                                years before energy efficiency measures 
                                are placed in service, and
                                    ``(III) with a primary use as 
                                residential housing, and
                    ``(B) includes such buildings owned and operated as 
                a condominium, cooperative, or other common interest 
                community.
            ``(6) Source energy.--The term `source energy' means the 
        total amount of raw fuel that is required to operate a 
        commercial building or multifamily building, and accounts for 
        losses that are incurred in the generation, storage, transport, 
        and delivery of fuel to such a building.
    ``(e) Timing of Claiming Deductions.--Deductions allowed under this 
section may be claimed as follows:
            ``(1) Design deduction.--In the case of a design deduction, 
        in the taxable year that energy efficiency measures are placed 
        in service.
            ``(2) Realized deduction.--In the case of a realized 
        deduction, in the second taxable year following the taxable 
        year described in paragraph (1).
    ``(f) Regulations.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, and after opportunity for 
        public notice and comment, the Secretary, in consultation with 
        the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency, shall prescribe regulations--
                    ``(A) for the manner and method for a registered 
                professional engineer to certify retrofit plans, model 
                projected energy savings, and calculate realized energy 
                savings, and
                    ``(B) to provide, as appropriate, for a recapture 
                of the deductions allowed under this section if a 
                retrofit plan is not fully implemented, or a retrofit 
                plan and energy savings are not certified or verified 
                in accordance with regulations prescribed under this 
                subsection.
            ``(2) Reliance on established protocols, etc.--To the 
        maximum extent practicable and available, such regulations 
        shall rely upon established protocols and documents used in the 
        ENERGY STAR program, and industry best practices and existing 
        guidelines, such as the Building Energy Modeling Guidelines of 
        the Commercial Energy Services Network (COMNET).
            ``(3) Allowance of deductions pending issuance of 
        regulations.--Pending issuance of the regulations under 
        paragraph (1), the owner of a commercial building or a 
        multifamily building shall be allowed to claim or allocate a 
        deduction allowed under this section.
    ``(g) Notice to Owner.--Each certification of a retrofit plan and 
calculation of energy savings required under this section shall include 
an explanation to the owner of a commercial building or a multifamily 
building regarding the energy-efficient measures placed in service and 
their projected and realized annual energy costs.
    ``(h) Allocation of Deduction.--Not later than 180 days after the 
date of the enactment of this section, the Secretary, in consultation 
with the Secretary of Energy, shall promulgate a regulation to allow 
the owner of a commercial building or a multifamily building, including 
a non-profit, to allocate any deduction allowed under this section, or 
a portion thereof, to the person primarily responsible for funding, 
financing, designing, leasing, operating, or placing in service energy-
efficient measures. Such person shall be treated as the taxpayer for 
purposes of this section and shall include a building tenant, 
financier, architect, professional engineer, licensed contractor, 
energy services company, or other building professional. In the case of 
a commercial building or a multifamily building that is owned by a 
Federal, State, or local government or a subdivision thereof, Internal 
Revenue Notice 2006-52, as amplified by Notice 2008-40, shall apply to 
any allocation.
    ``(i) Basis Reduction.--For purposes of this subtitle, if a 
deduction is allowed under this section with respect to any energy-
efficient measures placed in service under a certified retrofit plan 
other than in a qualified low-income building (within the meaning of 
section 42), the basis of such measures shall be reduced by the amount 
of the deduction so allowed.
    ``(j) Tax Incentives Not Available.--
            ``(1) Energy efficient commercial buildings deduction.--
        Energy-efficient measures for which a deduction is allowed 
        under this section shall not be eligible for a deduction under 
        section 179D.
            ``(2) New energy efficient home credit.--No deduction shall 
        be allowed under this section with respect to any building or 
        dwelling unit with respect to which a credit under section 45L 
        was allowed.
    ``(k) Report to Congress.--Biennially, beginning with the first 
year after the enactment of this section, the Secretary of Energy shall 
submit a report to Congress explaining the energy saved, the energy-
efficient measures implemented, the realization of energy savings 
projected, and the amounts and types of deductions allowed, determining 
the number of jobs created as a result of the deduction allowed under 
this section, and how the use of any deduction allowed under this 
section may be improved, based on the information provided to the 
Secretary of Energy as part of a certified retrofit plan. The Secretary 
and the Secretary of Energy shall share such information on deductions 
allowed under this section and related reports submitted, as requested 
by each agency to fulfill its obligations under this section, with such 
redactions as deemed necessary to protect the personally identifiable 
financial information of a taxpayer. In addition, the report will 
include recommendations on providing energy-efficient tax incentives 
for subsections of buildings that operate with specific utility grade 
metering. In addition, the Secretary of Energy shall, to the maximum 
extent practicable, incorporate conclusions of this report into current 
Department of Energy's building performance and energy efficiency 
programs and include statutory recommendations to Congress that would 
reduce energy consumption in new and existing commercial buildings 
located in the United States. Finally, the Secretary of Energy shall, 
working with stakeholder groups, provide in such report aggregated data 
that is publicly available.
    ``(l) Termination.--This section shall not apply with respect to 
property placed in service after December 31, 2016.''.
    (b) Effect on Depreciation on Earnings and Profits.--Subparagraph 
(B) of section 312(k)(3), as amended by this Act, is amended--
            (1) by striking ``or 179E'' both places it appears in 
        clause (i) and inserting ``179E, or 179F'',
            (2) by striking ``or 179e'' in the heading and inserting 
        ``179e, or 179f'', and
            (3) by inserting ``or 179F'' after ``section 179D'' in 
        clause (ii).
    (c) Conforming Amendment.--The table of sections for such part is 
amended by inserting after the item relating to section 179E the 
following new item:

``Sec. 179F. Deduction for retrofits of existing commercial and 
                            multifamily buildings.''.
    (d) Effective Date.--Except as otherwise provided, the amendments 
made by this section shall apply to property placed in service in 
taxable years beginning after the date of the enactment of this Act.
                                 <all>