Here is almost a real-time update on the federal budget from our friend John Bryant, Vice President, Advocacy, Codes and Standards, at BOMA International.  Over the year, BOMA as well as ICSC, NAIOP, RILA, and IREM, have been working together in D.C. to make sure that commercial real estate interests are strongly advocate for as part of any budget deal.

Earlier this morning, President Trump signed the Bipartisan Budget Act of 2018 (H.R. 1892), setting budget parameters for the federal government for the next two years and temporarily funding the government through March 23.  Important for BOMA members, the bill also retroactively extended the 179D Commercial Buildings Energy Efficiency Tax Deduction for 2017.  This important incentive previously expired in at the end of 2016.

Last year, BOMA in collaboration with other real estate industry groups and with support from a grant from software developer Yardi, released a study showing the costs and benefits of modernizing and extending this tax deduction. The study estimates that as many as 77,000 jobs will be created and $7.4 billion will be added annually to the national gross domestic product (GDP) if Congress passes a long-term extension and modification of 179D.

As part of our outreach on tax reform, we continually pressed members of Congress for the need to extend and enhance this incentive for building owners and managers to upgrade their buildings and save energy. While we had hoped for a longer-term extension, House leadership indicated that they will look at individual “tax extenders” to see how they fit with the previously passed tax reform bill. By having 179D included in this budget deal, we now have the opportunity to continue to make the case for the incentive in the coming weeks.

Concluding- this is a good victory for us, but there is still more work to be done.

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