CONGRESS APPROVES RESIDENTIAL ENERGY TAX CREDITS

Congress last approved a comprehensive energy bill (H.R. 6) that includes energy tax credits for new and existing home�s as well as multifamily properties.  President Bush is expected to sign the measure into law shortly.  NAHB worked aggressively to lobby for inclusion of the home energy efficiency tax credits in the final legislative package.  The legislation will provide:

•   A $2,000 tax credit to builders for the construction of a new home that is at least 50 percent more energy - efficient than a home built under the standards of the 2003 International Energy Conservation Code (IECC)
  

•   A consumer tax credit up to $500 for 10 percent of the cost of a qualified remodeling project that improves energy efficiency in an existing home. Eligible improvements must meet prescriptive criteria in the 2000 IECC. 

•   A $1.80 per square foot commercial property deduction for rental housing that is at least 50 percent more efficient than buildings constructed to the American Society of Heating, Refrigerating and Air-Conditioning Engineers 90.1-2001 standard.

In an effort to keep the overall tax package within tight budgetary constraints, amendments in conference tightened restrictions on the home energy provisions.  However, the new law has created a congressional marker for home energy efficiency tax credits, and NAHB will continue to work with Congress to expand and improve upon the provisions in H.R. 6.  For more information visit thomas.loc.gov

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