The American Architectural Manufacturers Association (AAMA) is recommending timely and significant government intervention to reduce severe construction industry unemployment. The association recently sent a letter to Chairman Dave Camp and members of the U.S. House of Representatives’ Committee on Ways and Means asking for effective tax incentives relating to energy-efficient fenestration products for homeowners.

“AAMA members represent 143,000 employees whose jobs are based solely on the strength of the home construction and renovation industries. The sharp decline and resulting layoffs in home construction brought about by the collapse of the housing market and subsequent economic recession continue to plague the construction industry at every level. The 2009-2010 Nonbusiness Energy Property 25(c) tax credit, which offered homeowners a 30% 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,” says AAMA President and CEO Rich Walker.

Current legislation, however, has reduced the lifetime tax credit to 10% (up to $500) for energy-efficient residential products, purchased and placed in service during 2011.

“Even in a severely recessed economy, homeowners will purchase products to reduce their energy bills given the proper incentive,” Walker states. According to 2009 IRS Data Line Counts (released in October 2011), 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% 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.

Continue reading at AAMAnet.org

Filed under: AAMA, ASSOCIATION NEWS, Homes + Neighborhoods, Products