Congress Extends Residential Energy Efficiency Tax Credit

December 21st, 2010 - Posted by RESNET under Hot Topics, Legislation, RESNET Notes, RESNET Notes - December 2010

congress extends tax creditsAfter hard work by RESNET and its strategic allies, Congress has extended the $2,000 federal tax credit for builders who build energy efficient homes. The extension will last from January 1, 2010 to December 31, 2011.  The extension was part of a sweeping tax package negotiated by the White House and Republican Congressional leaders.  President Obama signed the legislation into law on December 17, 2010.

The legislation also includes a provision that extends the tax credit for consumers who purchase qualified energy saving products, but lowers the credit to its pre-economic recovery act levels.  The new bill extends the credit to the end of 2011, but reduces the incentive to the original 10% up to $500. Included are provisions limiting window incentives to $200, oil and gas furnace and boiler incentives to $150-200, and water heater and wood heating system incentives to $300. Congress tightened the specifications for oil furnaces and boilers and gas boilers to 95% efficiency, up from the 90% efficiency in current credit.

The tax credit for energy efficient appliances was extended for one year, and the efficiency criteria upgraded.  The credit goes to manufacturers.

One of RESNET’s priorities in 2011 is to urge Congress to enact legislation for performance based tax credits.  This would include creating a performance based credit for comprehensive energy performance upgrades and a higher tax incentive for builders who build homes that are rated a 50 on the HERS Index or lower.  There will be a session focused on this at the 2011 RESNET Building Performance Conference.  For a schedule of sessions that will be offered at the conference, click on 2011 RESNET Conference

Tags: , ,

Previous post:

Next Post: