September 11, 2011 (Powerhomebiz.com) The National Association of the Remodeling Industry (NARI) applauds President Obama’s focus on job creation and recommends the full reinstatement of the25C tax credit program for residential energy-efficient improvements.
“The 25C tax credit had significant impact on job creation in the remodeling and manufacturing sectors, as well as in energy reduction. The full reinstatement of the program will stimulate job growth and stability in small businesses,” says David Merrick, MCR, UDCP, president of Merrick Design and Build Inc., in Kensington, Md.,and chair of NARI National’s Government Affairs Committee.
The Energy Policy Act of 2005 established a federal tax credit for energy-efficient home improvements (found in section 25C of the tax code). The 30 percent credit applies to energy-efficiency improvements for existing homes and the purchase of high-efficiency heating, cooling, and water-heating equipment. Homeowners were able to take a combined credit up to $1,500 for equipment purchased during a two-year period, until 2010 when the lifetime credit cap was lowered to $500.
“The program was successful in that many people exceeded the spending minimum required for the $1,500 tax credit, and that resulted in a large influx in retrofit workas well as investments back into homes for the long term,” Merrick says.
Every energy-efficiency improvement offers an opportunity for trained remodeling professionals to enhance the quality of homeowners’ lives. Those projects provide valuable work in the remodeling sector, which is struggling to recover from this economic downturn. The home energy-efficiency improvements also save homeowners substantial amounts of money on their monthly energy bills.
“NARI, with members predominantly representing small businesses, have noticed a decrease in retrofit work since the credit cap was cut by two-thirds last year andare calling for President Obama to reinstate the full $1,500 credit cap in the25C, especially since the goals to create jobs and increase energy efficiency are still relevant today,” Merrick says.
In a November 2010 survey, 81 percent of NARI members supported the extension ofthe 25C tax credit. The most recent government census reports there are more than 652,000 remodeling businesses in the United States. Nielsen’s 2011 Global Online Environment & Sustainability Survey report shows 83 percent of consumers say environmental programs in companies are important.
About NARI:
The National Association of the Remodeling Industry(NARI) is the only trade association dedicated solely to the remodeling industry. The Association, which represents member companies nationwide—comprised of 63,000 remodeling contractors— is “The Voice of the Remodeling Industry.”™ To learn more about membership, visit www.NARI.org or contact national headquarters, based in Des Plaines, Ill., at (847) 298-9200.
Wow that was unusual. I just wrote an really long
comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again.
Anyhow, just wanted to say wonderful blog!