AAMA urges fenestration industry to contact Congress on tax credit modification and extension

On Dec. 4, 2010, the U.S. Senate rejected a proposal offered by Sen. Max Baucus (D-Mont.) that sought to extend and modify the Existing Home Retrofit Tax Credit (Tax Code Section 25c) for windows that qualify toward energy-efficient home improvements. The current tax credit is set to expire on Dec. 31, 2010. The American Architectural Manufacturers Association (AAMA) is calling on its members and the entire fenestration industry to contact their representatives and urge them to modify and extend this tax credit.

The cloture vote was rejected 53-36. Those in opposition to a floor vote included a bipartisan mix of all of the Republican Senators and a handful of other legislators: Russ Feingold (D-Wis.), Ben Nelson (D-Neb.), Joe Manchin III (D-W.Va.) and Joseph Lieberman (I-Conn.).

“It is imperative for AAMA members – especially those whose representatives have opposed this legislation in the past – to contact their elected officials immediately,” says Rich Walker, AAMA’s President and CEO. “Allowing the current tax credit to expire will have a significant, negative impact on American jobs that manufacture, sell and install qualifying, energy-efficient window products. As U.S. jobs are affected, so too are our local and national economies.”

Currently, the maximum $1,500 tax credit was included in the American Recovery and Reinvestment Act to encourage the purchase of energy-efficient windows and doors. Qualifying, fenestration products’ performance must be equal to or below a U-factor of .30 and SGHC of .30.

“Unfortunately, Sen. Baucus’ proposal was tied to the hotly-contested tax legislation that has taken center stage during the 2010 ‘lame duck’ session,” Walker continues. “Although there is talk of quickly building compromise legislation, the political divide on this issue continues to grow. And with compromise, as we have witnessed in past attempts to extend and modify the current tax credit, large portions of proposed legislation are jettisoned during the negotiation process.”

AAMA and its members are insisting that the proposed 25c tax credit extension and modification language remain intact and be included in any significant compromise legislation. In light of the opposition, AAMA continues its work to gain Congressional support for the introduction of stand-alone legislation to extend and modify the current tax credit.

For more information on AAMA’s advocacy efforts, please visit www.aamanet.org.
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