Commercial Investment Real Estate November/December 2018 | Page 14

CCIM
Q& A
CCIM on the Hill
by Sarah Hoban
W
CIRE: What is the 179D deduction?
Gleason: The 179D deduction applies to buildings where
energy-efficient components have been installed. Deductions
are available to building owners and leasees for making eligible
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November | December 2018
energy-efficient improvements to commercial buildings, includ-
ing office, retail, industrial, apartments, and warehouses. The
deduction is available to both new construction and retrofits. It
was originally allowed for projects completed through 2016 only;
last summer, Rep. Dave Reichert, from here in Seattle, worked
with Oregon Rep. Earl Blumenauer to introduce legislation to
make the deduction permanent.
When the budget was passed in 2018, 179D was retroactively
extended for projects completed through the end of 2017. Since
that’s just a short-term fix, we’re looking for something long term,
and we’re just not getting that kind of commitment from anyone.
CIRE: Where does the National Flood Insurance
Program stand?
Gleason: That has been a big deal. We’ve been running with
short-term extensions. Last November, the House passed the
21 st Century Flood Reform Act, which addresses much-needed
reforms and reauthorizes the program for five years. We would
like to see this type of reform legislation signed into law. Presi-
dent Trump signed a short-term extension on July 31 — it expires
Nov. 30 — but these extensions are critical so the program
doesn’t collapse.
CCIM Institute would like to see common-sense reforms to
the program to make it more responsive to the needs of businesses
in flood zones. This would include offering expanded coverage
options for business interruptions and multiple structures, using
COMMERCIAL INVESTMENT REAL ESTATE
hile several legislative issues important to com-
mercial real estate professionals recently received
short-term fixes in the U.S. Capitol, CCIM advo-
cates are waiting to see if the results of Novem-
ber’s midterm elections could aid in moving some along to more
permanent solutions.
High among those issues are the
Section 179D commercial buildings
energy efficiency tax deduction and the
National Flood Insurance Program,
says Chad Gleason, CCIM, 2018 vice
chair of CCIM’s Government Affairs
Committee. The 179D deduction was
extended to include projects completed
through 2017; the NFIP received a
four-month extension signed by Presi-
dent Trump on July 31.
Gleason, who is executive managing
Chad Gleason, CCIM
director of SVN in Bellevue, Wash.,
talked to CIRE about both topics as well as other pending leg-
islative issues.