Energy Efficiency Tax Credits
Fiscal Cliff Bill Extends Energy Efficiency Tax Credits
American Taxpayer Relief Act of 2012 is bringing back energy efficient tax credits for windows, doors and skylights.
(From Window&Door, online)
Passed at the beginning of the new year to avoid tax increases for most Americans, as well as siginificant, across-the-board spending cuts, the American Taxpayer Relief Act of 2012 is bringing back energy efficient tax credits for windows, doors and skylights. Specifically, the bill reinstates the 25c tax credits that expired at the end of 2011 and extends them through the end of 2013.
Additionally, the new bill extends business credits of up to $2,000 for builders and contractors of new and renovated energy efficient homes through the end of 2013. It does change the requirements, however. The original law required new and renovated homes to be 50 percent more energy efficient than those built under the 2003 edition of the International Energy Conservation Code. The recent bill now references the 2006 edition of the IECC as the baseline.
Although welcomed by the fenestration industry, there are concerns:
“The Window & Door Dealers Alliance welcomes the reinstatement of 2011 tax credits in the American Taxpayer Relief Act," states Newton Little, a WDDA board member and VP of ACE Glass Co. Inc. in Little Rock, Ark. "Such credits help validate the importance of energy efficient upgrades to the home. We do believe, however, that the $500 maximum credit—and the $200 maximum for windows—limit the effectiveness of these incentives. We believe larger credits are necessary to truly encourage more homeowners to make the kind of investments needed to transform our nation’s existing housing stock to make it more efficient and more sustainable."
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