“We’ve always been under the assumption that 179D was
going to move forward. The problem that we have with tax
reform is that it’s taken the oxygen out of the room,” says Bryant.
“Typically during the time of year when tax extenders have
expired, Congress will retroactively extend them – when mem-
bers of Congress and lobbyists are talking about the importance
of using individual provisions. Those conversations aren’t taking
place because everyone is thinking about the broader picture of
what’s going to happen with tax reform.”
The concern then with this tax incentive is that if it is not
extended soon enough, it could disappear. For those hoping
for further financial incentives for energy efficiency upgrades,
resolving 179D more quickly is the ultimate goal. If this doesn’t
happen, the future is far more uncertain for the deduction’s
long-term viability.
“There have been various times where 179D has expired and
put in place retroactively in some cases, but that’s not ideal
because you want to send the signal to the market that the deduction is going to be available and reliable so they can plan and
execute projects,” Beardsley explains. “Any time there is a risk
of expiration – or an actual expiration, even if it’s reinstated – is
not ideal for this kind of program, but even where late or after
the fact, continuation has still been helpful in incentivizing these
activities. There are several policy considerations – including job
creation – that underlie the 179D deduction.”
Political Uncertainty
While it is unclear how the current political climate will affect
the buildings industry, areas that will carry the most weight are
coming into focus. For many of these issues, their successes or
failures will depend on the momentum of larger areas of interest
like the budget and tax reform.
“We’ve completed the first 100 days of this new Congress
and administration, but we haven’t seen a lot actually move.
That could be good or bad depending on your perspective,” says
Bryant. “We haven’t seen this Congress or this president really be
able to effectively legislate. You’ve seen a lot of executive orders,
but you haven’t really seen anything go across the president’s desk
Ultimately, the future of programs like Better Buildings,
ENERGY STAR and the 179D tax deduction are very much at the
mercy of other policies. Follow progress on the FY 2018 budget
and tax reform in the coming months. How legislators move on
these critical parts of the agenda will have direct consequences –
good or bad – for the commercial building industry.
Justin Feit justin.feit@buildings.com is Assistant Editor of
BUILDINGS.
B
AK
DC
/S
H
U
TT
ER
STO
C
K.COM
THE EPA FACES THE BIGGEST CUTS under the Trump administration. While funding is sure to decrease with Republicans controlling Congress and the White House, the full extent of these cuts
will be unclear until the House addresses FY 2018.
Protecting FMs to Fix ADA Violations
One policy BOMA has identified as a key issue is ADA notice and com- pliance. Key issues on the agenda
might keep it from being addressed right
away, but it is an issue that could see some
changes once the dust of major policies
settles because it has bipartisan support.
“What we’ve seen in the last couple of
years is a handful of attorneys in a couple
different states that are using the ADA as
a way of shaking down some of our mem-
bers,” says John Bryant, Vice President of
Advocacy, Codes and Standards at BOMA
International.
Often referred to as “drive-by lawsuits,”
some buildings have found themselves the
center of legal action after an often highly
technical accessibility violation is discovered.
Facilities have received letters from attorneys threatening lawsuits or settlements at
a certain cost, even if the facility manager
was unaware of the violation. Ideally, BOMA
would like to see Congress protect building
owners from these kinds of lawsuits, giving
owners a “notice and cure” period to allow
them to make the proper changes.
“We’re trying to stop those shake-
downs from happening, and we want
a buffer period where if someone says
there is an ADA violation in your build-
ing, you have time to actually correct that
violation before someone can threaten to
sue you,” says Bryant. “We’re not trying
to change the standards, lessen them or
make it harder for people to come into a
building, we want to be able to correct
violations and improve accessibility.”
It’s unclear when lawmakers will get to
this particular issue; this is likely dependent
on whether Congress can push through
major legislation in the coming months.
“We’re in the early stages,” says Bryant.
“Once we get past healthcare reform, tax
reform and infrastructure, things will open
up a little. I don’t think it’s going to be a
top priority for this Congress or administration. Once you get past the bigger picture
issues, we’re hoping that this one can fall
into the common sense camp.”
