The Senate recently voted to incorporate the tax incentives from the overall energy package — including the home energy efficiency tax credits — into S. 1637, the “Jumpstart Our Business Strength” (JOBS) bill that passed the chamber last month.
The energy credits included in the Senate bill would provide powerful incentives for millions of home owners, renters and buyers to conserve energy and save hundreds of dollars annually in utility costs.
Specifically, the legislation would provide:
- A $1,000 tax credit to builders for the construction of a new home that is at least 30% more energy-efficient than a home built under the latest standards of Chapter 4 of the International Energy Conservation Code approved by the Department of Energy. The tax credit jumps to $2,000 for homes that are at least 50% above the code.
- A 10% tax credit up to $300 on projects that reduce energy consumption in existing homes. Eligible improvements must be certified to meet or exceed the latest prescriptive criteria in the International Conservation Code approved by the Department of Energy. The credit would go to the home owner.
- A $2.25-per-square-foot commercial property deduction for rental housing four stories and higher that is at least 50% more efficient than buildings constructed to the American Society of Heating, Refrigerating and Air-Conditioning Engineers 90.1-2001 standard.
The House on June 17 approved its version of S. 1637, but it does not include home energy efficiency tax credits, and will have to be reconciled with its Senate counterpart in a House-Senate conference.
NAHB will urge the conferees to include the home energy efficiency tax credits in the final conference report.
To read the legislation, click here and enter the bill number in the box at the upper left.