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Legislation Introduced in the U.S. Senate to Create Whole House Retrofit Tax Credit

Apr 2, 2014

Legislation has been introduced in the U.S. Senate to create a performance based whole house tax credit for homeowners who improve the energy performance of their existing homes.  The legislation, “Energy Efficiency Tax Incentives Act’’ (S. 2189) was introduced by Senators Ben Cardin (D-MD), Dianne Feinstein  (D-CA) and Brian Schatz  (D-HI).

The credit offers a $2,000 tax credit for homes whose energy use is reduced by a minimum of 20%.  The proposed bill would increase the credit by $500 for each five percent reduction up to a maximum credit of $5,000.

The legislation requires energy modeling of the home “based upon modeling software certified by RESNET as following the software verification test suites in section 4.2.1 of RESNET Publication No. 06–001”.

The legislation requires that either RESNET Energy Smart Teams or BPI contractors undertake the improvements.  It also requires a test in and test out by a certified Home Energy Rater.

The legislation is posted at Energy Efficiency Tax Incentives Act.  The section on existing homes starts on page 47.

A performance base tax credit for existing homes has long been a legislative priority for RESNET.

The legislation is based upon negotiations that were conducted by RESNET, Efficiency First, the Alliance to Save Energy and the American Council for an Energy Efficient Economy.

RESNET will work with its strategic allies on promoting the legislation.  We will keep you informed on developments with this legislation.