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be permitted if apprentices are unavailable.
ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION
Beginning in 2022, the base credit for buildings with four or more stories that exceed 25 percent of ASHRAE standards in effect three years before a building is placed into service would be $0.50 per square foot for energy savings. It would increase by $0.02 per square foot for every percentage point by which energy savings exceed the 25 percent baseline threshold, up to $1.00 per square foot. Bonus amounts, as described above, are available for taxpayers meeting applicable labor requirements.
Additionally, taxpayers would be able to take a deduction for energy efficient lighting, HVAC and building envelope costs placed in service as part of a retrofit. The value of the deduction would be based upon how much energy savings is achieved. A minimum 25 percent reduction would be required to realize a $0.50 per square foot gain in the base credit.
The base credit would be increased by $0.02 per square foot for each additional percentage point in energy savings, up to $1.00 per square foot. Bonus amounts, as described above, are available for taxpayers meeting applicable labor requirements. NMHC has long sought a provision to address investment in building energy retrofits that result in significant energy savings relative to building’s own baseline energy performance to be eligible for the credit. The provision would be effective through 2031.
NEW ENERGY EFFICIENT HOME CREDIT
The proposal would extend the New Energy Efficient Home Credit (which applies to buildings of three or fewer stories) through 2031. For multifamily units acquired after 2022, a base credit of $500 is provided for units that participate in the ENERGY STAR Multifamily New Construction Program while meeting both national and regional program requirements. It is, however, unclear whether units will decide to participate in this program. A credit of $2,500 per unit is available if the building meets the applicable labor requirements described above. Finally, a base credit of $1,000 is available to multifamily homes certified as zero energy ready under the Department of Energy Zero Energy Ready Home Program.
PAID FAMILY AND MEDICAL LEAVE
paid leave for the birth or adoption of a child, to care for a family member with a serious health condition or to recover from one’s own health condition that prevents them from working. Starting in 2024, eligible workers would be entitled to the benefit within a one-year period and the benefit amount would be tied to an individual’s average weekly earnings and hours.
A provision that would end the employer tax credit for paid family and medical leave in 2024 rather than 2026 is also included.
The legislations calls for:
• $65 billion for public housing programs.
• $25 billion for the HOME Investment Partnerships Program
• $750 million for a new Housing Investment Fund to support private-sector investments in affordable housing
• $24 billion to further fund Section 8 Housing Choice Vouchers (HCV)
• $3.05 billion for the Community Development Block Grand (CDBG) program
• $2 billion for rural rental housing
FLOOD INSURANCE
The legislation would eliminate $20.5 billion in debt owed by the Federal Emergency Management Agency (FEMA) for money it borrowed to pay NFIP claims, provide $600 million for flood mapping and $600 million for FEMA flood insurance discounts to low-income policyholders.
DATA PRIVACY
The legislation puts aside $500 million for the Federal Trade Commission (FTC) to establish a new bureau focused on data privacy.
SMALL BUSINESS SUPPORT
The legislation would provide additional funding to the Small Business Administration (SBA). Specifically, it would provide $1.96 billion for a small dollar direct loan product under the 7(a) Loan Program, $1 billion for a new grant program to support startups and small businesses and $950 million to temporarily reduce waiver fees for 7(a) and 504 lending program loans that are $2 million or less.
The legislation would provide up to four weeks of
APARTMENT MANAGEMENT MAGAZINE - DECEMBER 2021 CS-13