NAHB Asks Congress to Extend Tax Incentives for Energy-Efficient Homes

The National Association of Home Builders (NAHB) spoke before Congress Thursday, April 24, and advised those in attendance that extending tax incentives for new energy-efficient homes is a way to help small home builders promote residential energy efficiency.

Testifying before the House Small Business Committee, Michael Hodgson, president of the Stockton, Calif.-based energy consulting firm ConSol, said these incentives dovetail with the normal supply and demand for home construction.

“A tax credit program leaves important production decisions in the hands of builders, buyers and home owners and does not require expensive administrative oversight that is usually associated with a mandate,” he said.

Under current law, builders who construct a home certified to achieve a 50-percent reduction in energy use are eligible to receive a $2,000 tax credit. That credit is set to expire at the end of this year. While legislation currently is pending that could extend the credit, NAHB officials say there is still no agreement between the House and Senate over the appropriate budgetary offsets.

“Unless Congress can end the political debate and extend this credit soon—with or without offsets—it will be a tremendous loss for my business and will eliminate the only federal incentive for efficiency in new homes,” said Hodgson.

He also urged Congress to increase the dollar amount of the credit.

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