Home builders laud House passage of energy policy bill

The nation's home builders Nov. 18 applauded House passage of HR 6, the conference report for the "Energy Policy Act of 2003," noting that the legislation contains important tax incentives to increase energy efficiency and conservation in the housing market.

"The housing provisions in HR 6 contain key home energy tax provisions originally introduced by Rep. Jerry Weller (R-Ill.), with some modifications, that would provide powerful incentives for millions of homeowners and renters to save hundreds of dollars annually in utility costs and allow builders to invest in market- and technology-driven initiatives that would promote higher levels of energy efficiency at more reasonable costs," said Jerry Howard, executive vice president and CEO of the National Association of Home Builders. "We encourage the Senate to follow suit and act quickly to pass this landmark bill."

The comprehensive measure would provide a $1,000 tax credit to builders for the construction of a new home that is at least 30 percent more energy-efficient than a home built under the 2000 International Energy Conservation Code. The tax credit jumps to $2,000 for homes built at least 50 percent above the 2000 IECC.

The legislation gives consumers a 20 percent tax credit of up to $2,000 for qualified remodeling projects that improve energy efficiency in existing homes.

The package also contains a $1.50 per square foot commercial property deduction for rental housing four stories and higher that is at least 50 percent more efficient than housing built under the standards of the American Society of Heating, Refrigerating and Air-Conditioning Engineers.

"HR 6 represents a major step forward in promoting energy conservation in new and existing homes, reducing the nation's energy dependence and lowering energy costs for American consumers for decades," Howard said.