Door, Window and Skylight Executives Request Extension of Energy Efficient Tax Credit

March 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.

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  1. With any luck, our government officials will realize that they will get all the money back, in the form of tax paying workers, instead of using our tax dollars to pay unemployment to the laid off workers. This is one time when the incentives are a win win for everyone, laid off worker, consumers, tax payers and the government.

    Hopefully they don’t modify the Energy Star requirements. The industry has already over paid for the last set of requirements, where the brain surgeons in the government required a darkening, solar heat gain coefficient ( SGHC )on windows in the Northern States. They rescinded that requirement, last year but the window industry paid the price to accommodate the government’s error. Consumers paid extra too.

    Now all we need to do is to convince them that a full glass, sliding door or hinged door is just a big window . They currently require a SHGC on doors, in order to be Energy Star rated, albeit I have read the code and disagree with how it has been interpreted by the major window companies. The code discusses “Opaque” doors, not full glass doors with some form of Low-e glass. But again, the Northern States need to darken glass like we need more layoffs. We heat more than we cool. This year’s mild weather still required the furnaces to run. As long as they need to be run, we don’t need darker glass, just energy efficient glass.

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