New Energy Efficiency Bill Is Performance-Based

On June 13, Senator Bob Smith (Republican–NH) introduced the Energy Efficient Buildings Incentives Act (S. 2718) to Congress. The bill would provide tax deductions for the following residential and commercial energy efficiency improvements: whole-building performance, PV systems, certified solar hot water systems, and rated high-performance water heaters, heat pumps, and central air conditioners. The maximum amount of the tax deduction is $2.25 per square foot ($24/m2) for commercial buildings, $2,000 for principal residences that are 50% more energy-efficient than the standard design reference house, and a range of $500 to $6,000 for specific equipment.

A key aspect of the bill is that all of the tax deductions are based on building or equipment