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AIA and NEMA Call on Congress to Extend Commercial Building Tax Deduction Print E-mail
Saturday, 12 December 2009 10:21

Policy would help spur immediate job creation and reduce energy consumption

The American Institute of Architects (AIA) and the National Electrical Manufacturers Association (NEMA) have called on Congress to support the enlarging the Energy Efficient Commercial Building Tax Deduction from $1.80 per square foot to $3.00 per square foot in order to help stimulate immediate job creation. A letter to Congressional members was also co-signed by over 50 organizations in the construction and environmental arenas.

In 2005 the AIA and NEMA advocated for a tax deduction of up to $1.80 per square foot for the design and installation of qualified energy efficient building systems in new building construction or in the renovation of existing buildings, which was enacted that same year. Although the deduction has been successfully used to build and retrofit energy efficient buildings, the economic crisis has reduced the amount of building design, construction and renovations across the country. In addition, because some energy efficient systems are more expensive to design, build, and install than their less efficient counterparts, the initial increased capital costs often dissuade owners from installing these systems.

AIA Executive Vice President / CEO, Christine McEntee said, “By increasing the deduction to $3.00 per square foot, Congress could immediately stimulate building design, construction, and renovation across the country, spurring job creation in every state and region, while enhancing our energy independence and improving our nation’s infrastructure for the 21st century.”

According to NEMA President and CEO Evan R. Gaddis, the increase would provide a valuable job-stimulating incentive to retrofit and renovate existing commercial buildings.
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“This tax incentive has a proven record of success in supporting thousands of construction, electrical, design, contractor, and manufacturing jobs prior to the recession. An increase is needed to address tight capital and other financing issues facing building owners. This is the type of measure that fits with the outlines of President Obama’s jobs stimulus announcement on December 8, 2009,” Gaddis said.

About The National Electrical Manufacturers Association
NEMA is the association of electrical and medical imaging equipment manufacturers. Founded in 1926 and headquartered near Washington, D.C., its approximately 450 member companies manufacture products used in the generation, transmission and distribution, control, and end use of electricity. These products are used in utility, industrial, commercial, institutional, and residential applications. The association’s Medical Imaging & Technology Alliance (MITA) Division represents manufacturers of cutting-edge medical diagnostic imaging equipment including MRI, CT, x-ray, and ultrasound products. Worldwide sales of NEMA-scope products exceed $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing and Mexico City.

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Last Updated on Saturday, 12 December 2009 10:34
 
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