As you may have seen, the Senate recently introduced its version of the reconciliation package.
Unfortunately, the language as it currently stands seeks to eliminate the 179D deduction for Energy Efficient Commercial Buildings.
NAED has been a part of the 179D coalition. We have created a draft letter for your consideration (see below). If your company can lend its support, please email Bud DeFlaviis at bud@naed.org as soon as possible. The deadline for contacting Bud is Friday, June 20 at 3:00pm Eastern.
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June 19, 2025
Dear Leader Thune, Speaker Johnson, Chairman Crapo, and Chairman Smith:
We write in strong support of Section 179D, the Energy Efficient Commercial Building Deduction, and respectfully urge that this important policy be preserved. We oppose the proposed wind-down of Section 179D included in the Senate Finance Committee’s reconciliation bill text and request that the provision be stricken.
The undersigned organizations represent a broad coalition of stakeholders – including professionals in construction, manufacturing, engineering, architecture, building services, and energy efficiency – who have worked with Section 179D since its inception and understand its vital role in driving economic growth and innovation.
By way of background, Section 179D was first enacted under President George W. Bush in the Energy Policy Act of 2005 and made permanent under President Donald Trump in 2020. Section 179D is an enhanced tax deduction akin to accelerated cost recovery that enables commercial building owners to offset investments in proven, yet innovative, energy efficiency technology. Section 179D encourages private investment in infrastructure upgrades to lighting, HVAC, and building envelope, powering job creation in the trades, construction, engineering, and manufacturing that contribute to America’s economic strength and competitiveness.
Additionally, as the nation considers an America First Energy Policy and how to address increasing energy demands, Section 179D is an important part of the solution to help reduce long-term energy costs and ease demand on the grid. At a time when energy independence and infrastructure resiliency are national priorities, removing or phasing out Section 179D would deliver only marginal budgetary savings while disrupting an important ecosystem of innovation, efficiency, and economic opportunity.
We strongly urge Congress to strike the Senate Finance Committee’s proposed wind-down of Section 179D. Instead, Section 179D should be retained in the tax code, building on its strong two decades of bipartisan history and allowing building owners and the building sector to foster American energy dominance and energy efficiency innovation into the future.
Thank you for your leadership and commitment to energy innovation and job creation.
Respectfully,
[Signatories]
NATIONAL ASSOCIATION OF ELECTRICAL DISTRIBUTORS