December 2nd, 2019
Expanded Energy-Efficiency Tax Incentives Back on the Table
In an effort to fight climate change, a new draft of the Growing Renewable Energy and Efficiency Now (GREEN) Act was released for discussion on Nov. 19 by the House Ways and Means Committee. Among the priorities is leveraging tax incentives to encourage energy-efficiency improvements in new and existing homes.
According to the news release issued by Mike Thompson, Ways and Means chairman, the bill aims to:
- Promote the use of green energy technologies and incentivize the reduction of greenhouse gas emissions through new and existing tax benefits.
- Increase energy efficiency and green energy use in both residential and commercial buildings.
- Support the use of zero-emission transportation and supporting infrastructure.
- Invest in a green workforce through energy credits for manufacturers.
- Advance environmental justice through tax credits for research and academic programs.
- Require the Treasury Department to analyze the feasibility of a price on greenhouse gas emissions, using the EPA’s Greenhouse Gas Reporting Program.
The bill would extend and expand several tax incentives important to our industry through 2024, including 25C (homeowner tax credit for energy-efficient doors and windows), 45L (contractor tax credit for constructing energy-efficient new homes) and 179D (building owner tax deductions for installing energy-efficient systems in commercial structures).
At this point, the bill is just considered to be a “discussion draft” meant to spur conversations about how our tax structure can be a useful tool in promoting green technologies. Many experts expect that it would take some time for this package to see much movement in the next year; rather, it’s laying the groundwork for future legislation.
The View from Here
The View from Here is that no matter how you look at it, extending or expanding tax incentives to homeowners, contractors and building owners would be good for our industry. The GREEN Act is definitely one to watch in the next year, and I’ll report back as updates are available.
What’s your View? Email me directly at firstname.lastname@example.org.