House Speaker Paul Ryan, R-Wis., announced to Republican lawmakers at a conference meeting late on December 15 that negotiators have reached agreement on a tax-extenders package worth approximately $800 billion. This 2-year package will extend the 179D Tax Deduction retroactively for 2015 and make the incentive current for 2016. In addition to extending the expired tax provision, the package will make permanent the R&D Tax Credit, Sec 179 Expensing, state and local tax deductions, the Earned Income Tax Credit and the American Opportunity Tax Credit. As part of the extension of the 179D Tax Deduction, the ASHRAE requirement will be increased to the 2007 Standards for any projects placed into service after 12/31/2015.
We still must wait for the bill to be officially signed into law but we expect the bill to arrive on the House floor as early as Thursday, with Senate consideration expected before Congress adjourns for the holidays.