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Housing Tax Credits in Senate Energy Bill
By an overwhelming margin of 85-12, the Senate on June 28 voted to pass a comprehensive energy package (S. 10) that now must be reconciled with a vastly different House bill (H.R. 6).
NAHB was successful in ensuring the inclusion of energy efficiency tax credits for new homes, existing homes and commercial properties (including multifamily structures) in the $14 billion worth of energy tax incentives approved by the Senate.
The House-passed version includes just $7 billion in tax incentives and only provides tax credits for existing homes.
The Senate 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 standards of the 2003 International Energy Conservation Code. The tax credit jumps to $2,000 for homes that are at least 50% above the code.
- A tax credit up to $2,000 on projects that reduce energy consumption in existing homes by at least 50% in “comparison to the original condition of the building.” The credit would go to the home owner.
- A $2.25 per square foot commercial property deduction for rental housing that is at least 50% more efficient than buildings constructed to the American Society of Heating, Refrigerating and Air-Conditioning Engineers and the Illuminating Engineering Society of North America 90.1-2001 standard.
In the upcoming House-Senate conference to iron out differences in the legislation, the biggest sticking point is expected to be a House bill provision for liability protection for the producers of methyl tertiary butyl ether. A House-Senate impasse over this provision helped to derail the energy bill in the 108th Congress.
As the legislative process moves forward, NAHB will work to ensure that all of the home energy tax provisions in the Senate bill are included in the final conference report.
To view the legislation, click here and type S. 10 or H.R. 6 in the box in the upper left hand corner. For more information, e-mail Allen Segal at NAHB, or call him at 800-368-5242 x8570.
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