Industry Calls on Legislators to Extend Tax Credits; Companies’ Promotional Efforts Wind DownDecember 7th, 2010 by DWM Magazine
After months of publicizing the door and window tax credit to homeowners, manufacturers tell DWM magazine they have begun to change their promotional messages but some are still offering some incentives to encourage sales into January. At the same time, many companies are joining the Window and Door Manufacturers Association (WDMA) in encouraging legislators to extend the credit.
A number of door and window industry members sent a joint letter last week to all members of Congress urging them to pass a temporary extension of the energy-efficient tax credit for windows, doors and skylights. Without an extension, the tax credit will sunset on December 31.
The WDMA reports that the Senate is moving closer to a compromise on an extension of the 2001 and 2003 Bush tax cuts. The final tax package is also likely to include a package of tax extenders proposed last week by Senate Finance Chairman Max Baucus (D-MT), which contains the WDMA-sought one-year extension of the 25c energy efficiency tax credit for windows, doors and skylights.
Under the Baucus proposal, the credit would also switch the qualifying criteria to 2010 ENERGY STAR® for windows, doors and skylights purchased in 2011, says the WDMA.
In the meantime, door and window company representatives tell DWM magazine that some of their dealers are creating some promotions to spur purchases into the New Year.
“Some of our dealers are offering a special on a sliding door—something to keep business going,” says Mike Mooney, vice president of marketing.
But he says Sunrise and its dealers are going back to basics.
“They [our dealers] sold a lot of windows before the tax credit and they will again,” he says. “They will go back to selling the features and benefits of the windows.”
In fact, he says he noticed that in his Midwest market the major manufacturers have started changing their ad messages away from the tax credit.
Harvey Building Products is another company that has been publicizing the door and window
“For the past few months, Harvey Building Products has focused on leveraging the ARRA tax rebates slated to end at the end of the year,” says Matt Samson, vice president of marketing. “Strong sales to date indicate that Harvey’s promotion in combination with federal tax rebates have been a compelling offer for consumers.”
But he too says these promotions are winding down as the December 31 deadline approaches.
“Most homeowners who want to take advantage of the tax break seem to have already taken action, knowing that they need to have the windows actually installed by end of year,” he says. “After coming off of a late-blooming call, many of our contractor customers are very busy attempting to work down their backlogs from this demand push.”