Door, Window and Skylight Executives Request Extension of Energy Efficient Tax CreditMarch 1st, 2012 | Category: Industry News
Nineteen executives of the nation’s door, window and skylight companies have sent a joint letter to Congress urging a robust extension of the residential energy efficient (25C) tax credit that expired at the end of 2011. According to an announcement from the Window and Door Manufacturers Association (WDMA), the executives are urging lawmakers to extend the credit at the $1,000 level in order to preserve jobs and promote energy efficiency.
“We urge your support for an extension of a robust 25C tax credit, knowing the $1,000 level would effectively leverage consumer activity and job preservation,” the letter states. “As you know, the credit benefits consumers by allowing them to choose from a menu of energy efficiency options and determine which product works best for their needs. It creates jobs and benefits homeowners by reducing their energy use, lowering their energy bills and improving their homes.”
Using the 2009 IRS tax data, the net economic impacts of the previous $1,500 25C tax credit were significant (setting aside the long-run energy efficiency benefits for homeowners), according to WDMA. Of the $25.1 billion of qualified expenditures associated with the tax credit for 2009, homeowners received tax benefits totaling $5.17 billion. In addition, the credit overwhelmingly benefitted middle-income taxpayers, with over two-thirds claiming the credit having adjusted gross income of $100,000 or less.
Further, an analysis by the National Association of Home Builders (NAHB) estimates that every $100,000 of remodeling activity creates 1.11 jobs on a full-time equivalent basis, with 16.2 percent of the jobs in the manufacturing sector. Combining the IRS data and the NAHB economic impact model indicates that for 2009, a total of 278,610 full-time jobs were in connection with the 25C tax credit, with 45,180 of these jobs in the manufacturing sector. The program supported approximately $13.2 billion in wages for these workers and $7.5 billion in net business income.
The companies signing the letter are Andersen Corp., Associated Materials, B.F. Rich Windows & Doors, Cascade Windows, Champion Window, Crystal Window & Door Systems, Harvey Building Products, Hurd Windows & Doors, JELD-WEN Inc., Karona Inc., The Marvin Companies, Pella Corporation, Ply Gem Windows, ProVia Door Inc., Sierra Pacific Industries, Sunrise Windows, Therma-Tru Doors, VELUX America, and Weiland Sliding Doors & Windows.
The extension of the 25C tax credit will be a priority issue WDMA members will raise with members of Congress next week during the WDMA Spring Meeting and Legislative Conference in Washington, D.C.