NMHC/NAA spearheaded a coalition letter to the House Ways and Means Subcommittee on Tax Policy on March 12 asking that lawmakers make the New Energy Efficient Home Credit permanent. While lawmakers recently extended the incentive through 2017, House tax writers held a March 14 hearing to evaluate the efficacy of renewing expired tax provisions known as extenders.
The New Energy Efficient Home Credit enables builders of new single-family homes and low-rise multifamily properties (three stories or less) to claim a $2,000 per-unit tax credit if those residences achieve a 50 percent energy savings for heating and cooling over the 2006 International Energy Conservation Code. The provision has provided a useful incentive for contractors to install higher performance building systems and upgraded appliances than they otherwise could justify within the proforma for developing the property. The multifamily industry believes the value of this incentive will be maximized if it is made a permanent feature of the tax code.
More on energy efficiency tax incentives can be found here.