(S. 3935) Measure Expands and Extends Tax Credits for Energy Star Factory-Build Homes
Congress is currently scheduled to return for a lame duck session the week of November 15 to complete work on a number of must-pass legislative measures, including a potential energy tax incentive package.
MHI is seeking assistance to ensure legislation extending and expanding tax credits available for the production of Energy Star-qualified manufactured and modular homes is included in any tax package considered by Congress
Download Word doc of Sample Letter to Committee Members. (PDF version)
BACKGROUND:
At the end of September, Sens. Jeff Bingaman (D-NM) and Olympia Snowe (R-ME) introduced the Advanced Energy Tax Incentives Act of 2010 (S. 3935). The measure would extend a variety of tax incentives, including Section 45L for manufactured and modular homes.
The legislation would amend the tax code to provide a credit of $1,500 for qualifying Energy Star manufactured homes, an increase from the current $1,000 credit. The credit increases to $2,500 when new, more stringent manufactured housing Energy Star requirements go into effect in 2011.
For the highly price sensitive manufactured home market, tax credits are vital in helping offset the added costs associated with the construction, purchase and ownership of an Energy Star home.
The existing $1,000 tax credit has been valuable in helping expanding the market for Energy Star manufactured homes, which currently make up approximately five percent of total manufactured homes sales nationwide. However, the high cost of building to Energy Star standards remains a barrier to affordable housing. Increasing the credit will be instrumental in placing Energy Star homes within reach of moderate- and low-income families.
MHI, along with a broad coalition of energy efficiency, environmental, and affordable housing organizations have expressed strong support for extending and expanding the Energy Star tax credit for manufactured and modular homes.
KEY TALKING POINTS:
- Senators are asked to endorse the Advanced Energy Tax Incentives Act of 2010 (S. 3935), to promote energy efficiency for manufactured and modular homes for the following reasons:
- For the highly price sensitive manufactured housing market, these credits are vital to helping buyers afford the added costs of purchasing an Energy Star home
- For manufactured homes, energy costs represent a larger proportion of the total costs of homeownership versus site-built housing; energy price hikes are felt most acutely among owners of manufactured homes
- For moderate- and low-income households, escalating energy prices are more likely to translate into real declines in disposable income and pose a major impediment to building equity and financial security
- The energy savings associated with owning and Energy Start home more than compensate for the higher construction costs. In high cost energy areas, for instance, cost savings can total roughly $800 or more per year.
- The tax credit is viewed by a growing number of state and local government agencies, as well as housing and energy efficiency advocates as a critical foundation for encouraging Energy Star manufactured home construction.
- The tax credit has moved state governments and utilities to offer companion programs to promote Energy Star predicated on the availability of the tax credit. The delay in extending the tax credit has begun to slowly unwind these initiatives that are so vital to building support for Energy Star around the nation.
ACTION NEEDED:
MHI members are urged to contact members of the Senate Finance Committee and ask them to co-sponsor S. 3935. A list of Finance Committee members is below and a draft letter is also attached for your convenience.
SENATE FINANCE COMMITTEE
| Chairman Max Baucus (D-MT) |
202-224-2651 | |
| Ranking Member Chuck Grassley (R-IA) |
202-224-3744 | |
| Democrats | ||
| John D. Rockefeller, IV (WV) | 202-224-6472 | |
| Kent Conrad (ND) | 202-224-2043 | |
| Jeff Bingaman (NM) | 202-224-5521 | |
| Blanche L. Lincoln (AR) | 202-224-4843 | |
| John F. Kerry (MA) | 202-224-2742 | |
| Ron Wyden (OR) | 202-224-5244 | |
| Charles E. Schumer (NY) | 202-224-6542 | |
| Debbie Stabenow (MI) | 202-224-4822 | |
| Maria Cantwell (WA) | 202-224-3441 | |
| Bill Nelson (FL) | 202-224-5274 | |
| Robert Menendez (NJ) | 202-224-4744 | |
| Thomas R. Carper (DE) | 202-224-2441 | |
| Republicans | ||
| Orrin G. Hatch (UT) | 202-224-5251 | |
| Olympia J. Snowe (ME) | 202- 224-5344 | |
| Jon Kyl (AZ) | 202-224-4521 | |
| Jim Bunning (KY) | 202-224-4343 | |
| Mike Crapo (ID) | 202-224-6142 | |
| Pat Roberts (KS) | 202-224-4774 | |
| John Ensign (NV) | 202-224-6244 | |
| Michael B. Enzi (WY) | 202-224-3424 | |
| John Cornyn (TX) | 202-224-2934 |
Download Word doc of Sample Letter to Committee Members. (PDF version)
If you are a member and have questions, contact MHI Vice President of Political and Legislative Affairs Rae Ann Bevington at 703-558-0675 or RBevington@mfghome.org or Vice President Legislative Affairs Jason Boehlert at 703-558-0660 or JBoehlert@mfghome.org
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