ERA Joins Coalition of Leading Associations to Support Shorter Depreciation for Energy Efficient Roofs: Ten-year Cost Recovery Period Would Cover Broad Range of Building Products
Washington, D.C. – The EPDM Roofing Association (ERA) has joined with more than 30 other leading construction industry associations to support a bill that would simplify and shorten the current depreciation period for buildings that incorporate energy efficient measures. The Energy Efficient Qualified Improvement Property Act (the “E-QUIP Act”, H.R. 2346) proposes a uniform 10-year depreciation period for building improvements that may include retrofits of aging and obsolete roofs, as well as HVAC systems, lighting, windows and controls with state-of-the-art systems. This shorter depreciation period would be allowed if the new construction meets stringent high performance standards designed to achieve significant energy savings beyond baseline energy codes. To be eligible for the shortened depreciation period, construction would be required to replace or retrofit systems and components in buildings that are at least 10 years old.
The E-Quip Coalition includes representatives of architecture, clean energy, environmental, financial, labor, manufacturing, and real estate organizations, construction codes and standards developers, and state associations. In a letter to the House Ways and Means and Energy and Commerce Committees, the coalition points out that current cost recovery requirements vary widely depending on whether the equipment in question is included in commercial or residential construction or on the interior or exterior of a building.
“The current confusing situation actually discourages energy efficient investments,” said Ellen Thorp, Executive Director of ERA. “Adoption of this simple, lower depreciation schedule would encourage innovation as we modernize our nation’s building infrastructure, using EPDM and other roofing products in energy efficient and resilient systems.”
Jennifer Ford-Smith, Chair of ERA’s Board and Director of Product Management and Marketing at Johns Manville, said, “At a time when the roofing industry is energetically moving forward in the wake of the pandemic, this legislation would benefit both our customers and the energy efficiency of our country. Given the Administration’s commitment to investing in infrastructure improvements, we urge prompt passage of this important legislation.”
A recent analysis by the American Council for an Energy Efficient Economy (ACEEE) estimates potential significant economic impacts of this bill, including the creation of 130,000 additional job-years and $15 billion savings in energy costs. Additionally, the Council analysis estimates that 100 million tons of carbon dioxide emissions could be avoided.
The EPDM Roofing Association (ERA) is the first trade association solely representing the manufacturers of EPDM single-ply roofing products and their leading suppliers. ERA provides technical and research support to the public and the construction industry, and communicates the longstanding attributes, consistency and the value proposition of EPDM rubber membrane roofing materials.