Capitol Hill

In my June column, I explained the Realistic Roofing Tax Treatment Act of 2005 (R2T2) would shorten the tax depreciation schedule for nonresidential roof systems from the current 39-year depreciation schedule to a 20-year schedule and that it had been introduced on April 6 as HR 1510 by Rep. Mark Foley (R-Fla.). At the time, the bill had 15 bipartisan co-sponsors, but that number now is 23 and growing every week. Remarkably, 11 are on the House Ways and Means Committee, the committee with control over the bill in the House.

I also indicated a Senate companion bill would be introduced in June and am pleased to report that on June 8, Sen. Jim Bunning (R-Ky.) introduced the Realistic Roofing Tax Treatment Act of 2005 (S 1200).

Original co-sponsors are Sen. Saxby Chambliss (R-Ga.), Sen. Jim DeMint (R-S.C.), Sen. Trent Lott (R-Miss.), Sen. Jeff Sessions (R-Ala.) and Sen. James Talent (R-Mo.), who comprise one-fifth of the Senate. Bunning and Lott are members of the Finance Committee, which is writing the tax title for the Energy Policy Act of 2005. And Bunning and Talent are members of the Energy and Natural Resources Committee, which has jurisdiction over the entire energy bill to be brought to the Senate floor for a vote.

Perfect fit

The Energy Policy Act of 2005 presents an excellent opportunity to advance R2T2 through Congress, and the Senate is the best point of entry for doing so. To better position the bill for inclusion as an amendment, it has been modified so only a nonresidential roof system that meets the requirements of ASHRAE 90.1-2004, "Energy Standard for Buildings Except Low-Rise Residential Buildings," would qualify for the shortened 20-year depreciation schedule.

The ASHRAE 90.1 standard is the appropriate energy-efficiency threshold to qualify nonresidential roof systems for the shorter 20-year depreciation schedule because it is flexible. It does not specify materials but rather provides a minimum performance level. For example, ASHRAE 90.1 incorporates R-values and reflectivity and the amount of heating days and cooling days for performance purposes are determined by a project's location. Decisions about what materials to use to meet that performance level are left in the hands of building owners and roof system designers.

The Energy and Natural Resources Committee has approved all titles of the Senate's energy bill, including Title I about energy efficiency, with tax provisions from the Finance Committee to be added last. A Title I provision requires the administration to reduce the nation's oil consumption by 1 million barrels a day by 2015 but does not specify how this is to be accomplished. R2T2 would help reach that goal because its 20-year depreciation incentive coupled with ASHRAE 90.1 would encourage the use of more energy-efficient roof systems.

Help wanted

NRCA's Washington, D.C., office is working to leverage support for R2T2 through a coalition; letters to Congress; and NRCA's political action committee, ROOFPAC. The Coalition for Realistic Roofing Tax Treatment is conducting a recruitment campaign, and its list now includes the Food Marketing Institute, American Rental Association and Association of Equipment Manufacturers, among others.

In addition, a grassroots letter-writing program has been initiated for members of NRCA's Government Relations and PAC Advisory Committees to write their respective representatives to urge support for R2T2. Of course, NRCA's political action committee, ROOFPAC, is essential to the success of R2T2, and new fundraising events and donor programs currently are being planned.

For more information about joining the coalition or to get a sample grassroots letter with instructions, please contact NRCA's Washington office at (800) 338-5765 or e-mail me at cbrightup@nrca.net.

Craig S. Brightup is NRCA's vice president of government relations.