AAMA Requests Better Tax Incentives for Energy-Efficient Fenestration Products

Official at the American Architectural Manufacturers Association (AAMA) in Schaumburg, Ill., are recommending timely and significant government intervention to reduce severe construction industry unemployment.

“AAMA members represent 143,000 employees whose jobs are based solely on the strength of the home construction and renovation industries,” says Rich Walker, president and CEO. “The 2009-2010 Nonbusiness Energy Property 25(c) tax credit, which offered homeowners a 30 percent tax credit (up to $1,500), provided a boost in the sales of energy-efficient windows and doors and helped to sustain jobs in production facilities and residential construction.”

December 2010 legislation, however, reduced the lifetime tax credit to 10 percent (up to $500) for energy-efficient residential products, purchased and placed in service after December 31, 2010. “This reduction in the Nonbusiness Energy Property tax credit has led to a debilitating decrease in demand and has decimated the construction industry from production facilities to retailers to product installers,” Walker says.

Even in a severely recessed economy, homeowners will purchase products to reduce their energy bills given the proper incentive. According to 2009 IRS Data Line Counts (2010 information has not been released), 2.3 million homeowners seized the tax credit opportunity to purchase and install energy-efficient windows and skylights throughout 2009. Additionally, 1.8 million homeowners made purchases of energy-saving exterior doors.

Residential buildings are responsible for 21 percent of all energy consumption in the U.S., according to the U.S. Department of Energy’s (DOE’s) Building Technology Program. Based on Energy Star program estimates, the investments made by homeowners to purchase and install efficient fenestration products in 2009 will reduce energy costs by an average of $295 annually per household, resulting in a collective savings exceeding $678 million per year for U.S. homeowners who participated in the program.

“Congress continues to provide billions of dollars in funding incentives to support alternative energy-generating projects through the DOE’s Loan Program Office,” Walker says. “While this endeavor may prove to be a valuable investment in the future, it should be clear that conserving energy—whether generated by gas, electricity, solar or wind power—is the highest imperative. Delivering energy to a home that is not properly insulated or has inefficient window and door products is a preventable waste of resources that can be remedied with American-made products already on the market.”

Walker adds, “If reinstated, the 2009-2010, 30 percent/$1,500 Nonbusiness Energy Property tax credit will spur an immediate increase in employment throughout the construction industry supply and installation chain. Our reliance on foreign oil will abate as highly-efficient windows and doors go to work conserving energy. These efforts not only help to conserve national and global resources, they help spark our domestic manufacturing and fiscal health; they enhance home values and they provide homeowners and their families with more comfortable, better-performing residences.”

Other industry associations also are fighting for extension of the tax credits. To learn what the Window and Door Manufacturers Association (WDMA) is doing, see page 12.

2010 Florida Building Codes Update Energy Provisions
The International Code Council and the Florida Building Commission, housed within the Florida Department of Business and Professional Regulation, have announced changes to the Florida Building Codes they say will result in safer, sustainable homes and buildings.

The Florida Building Commission also centralized all energy provisions, including the energy provisions formerly located in Chapter 13 of the Building Code and Chapter 11 of the Residential Code, creating the 2010 Florida Energy Conservation Code to promote ease of use and application. The updated Florida State Building Codes are mandatory for all new construction or rehabilitation projects with a permit application date of March 15, 2012, or later.

2010 Florida Building
Codes Update Energy Provisions
The International Code Council and the Florida Building Commission, housed within the Florida Department of Business and Professional Regulation, have announced changes to the Florida Building Codes they say will result in safer, sustainable homes and buildings.
The Florida Building Commission also centralized all energy provisions, including the energy provisions formerly located in Chapter 13 of the Building Code and Chapter 11 of the Residential Code, creating the 2010 Florida Energy Conservation Code to promote ease of use and application. The updated Florida State Building Codes are mandatory for all new construction or rehabilitation projects with a permit application date of March 15, 2012, or later.

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