Following the threat of the presidential veto issued by the White House last week. It appears that the likelihood of the 2 year extenders package, which originated in the Senate Finance Committee (Expire act), will result in a one-year extension (including 179D Tax Deduction) making all expired provisions active through the end of 2014.
The House is preparing to vote this week on a one-year tax extenders package. The legislation (HR 5771) extends expired provisions through the end of 2014, which includes the 179D deduction. A small window of opportunity remains for House and Senate leaders to negotiate a longer-term package, and talks continue on such a deal. However, if further negotiations prove unsuccessful HR 5771, likely will be enacted into law. Putting us once again in the same situation, having an expired 179D Tax Deduction incentive in 2015.
The 179D language in HR 5771 is a straight extension through the end of the year, and does not include any of the modifications contemplated in the Senate Finance Committee package (increase in ASHRAE standard, availability to tribes and non-profits, etc.).If the one-year extension is enacted into law it will allow for companies that have participated in energy efficient commercial building projects from 2013-2014 to benefit from the 179D Tax Deduction for those past projects, leaving business owners and companies who are planning on implementing energy efficiency projects in 2015 with the same uncertainty as to whether or not the 179D Tax Deduction can be used for project feasibility purposes.
For now we will have to wait and see what road Congress decides to take with the Tax Extenders as anything can happen from now until they are scheduled to break on December 12th.