Nareit and other Trade Associations Ask the Heads of the Tax-Writing Committees to Depreciate Energy Efficiency Costs Over 10 Years

On May 8, Nareit joined real estate business, energy efficiency, and environmental advocacy organizations in encouraging the heads of the House and Senate tax-writing committees to consider legislation to establish a new category of “Energy Efficient Qualified Improvement Property,” or “E-QUIP,” with a 10-year cost recovery period for both taxable income and earnings and profits purposes (used to calculate dividends). Among other things, the 10-year E-QUIP recovery period would apply to both interior and exterior energy efficiency improvements in multifamily and commercial buildings.

The letter notes that “a uniform E-QUIP 10-year recovery period will promote productive business investment by spurring high performance upgrades in commercial and multifamily buildings. In turn, optimizing energy efficient building performance will help create well-paying jobs in the construction, design, and energy sectors; boost equipment manufacturing; enhance our country’s energy independence; and reduce the built environment’s carbon footprint.”

(Contact: Dara Bernstein at

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