The Building Owners and Managers Association (BOMA) Intl., based in Washington, D.C., applauds Congress for passing the Emergency Economic Stabilization Act of 2008, signed into law by President Bush in earlier this month. In addition to the financial rescue plan, the act includes three legislative priorities for the commercial real estate industry: the 2-year extension of both the 15-year timeline for depreciating leasehold improvements and brownfields expensing, and a 5-year extension of the tax deduction for energy-efficient commercial buildings.
The 2-year extensions on brownfields expensing and leasehold depreciation are retroactive to Jan. 1, 2008, and will go through Dec. 31, 2009. The deduction of up to $1.80 per square foot for energy-efficiency improvements made to commercial buildings that achieve 50-percent reduction in energy use, compared to a base building defined by ASHRAE 90.1-2001, will now expire Dec. 31, 2013.
"We commend Congress and the Administration for passing the Emergency Economic Stabilization Act of 2008 with the provisions on leasehold depreciation, brownfields expensing, and energy-efficiency tax incentives," says BOMA Intl. Chair and CEO Richard D. Purtell. "These provisions are critical for both commercial real estate and the overall economy, as they will stimulate development, provide a more realistic depreciation schedule for tenant improvements, and promote the industry's voluntary effort to improve energy efficiency in commercial buildings."