Are You Glad Tax Credits are Back?
Like most Americans, I spent part of the holidays following the news of the fiscal cliff negotiations. I was relieved when a deal was finally struck, thinking the stage is set for window and door industry growth in 2013, if only Washington can keep out of the way.
With all the discussions focused on tax rates for upper income people and potential spending cuts, however, I didn't give much thought to the potential return of tax credits for windows, doors and skylights. Apparently, I wasn't alone. Two weeks after the fact, it has emerged that the American Taxpayer Relief Act of 2012 includes provisions that restore the 2011 homeowner tax credits for purchases of energy efficient products, as well as business tax credits for builders and contractors building or significantly renovating ultra efficient homes.
So, is this a good thing? That's our poll question of the week. And we'd like to hear from you. Are you happy with the tax credits? Will the retroactive credits for 2012 create challenges? Are you one of those in the industry that don't like the tax credits at all? Do the maximum incentives need to be greater? Should the industry lobby for credits at 2009 and 2010 levels? Post a comment below or email me and share your thoughts.
Survey Results as of 01/21/2013 :
The tax credits enacted as part of the fiscal cliff bill:
Need to be larger to have a positive impact
Will have a positive impact on the industry
Will have a negative impact on the industry
Our poll results suggest that for tax credits to be a worthwhile incentive for the purchase of energy efficient windows and doors, they need to be larger. While most within the industry agreed that the $1,500 credits available in 2009 and 2010 had an impact on the industry, few see the same happening with the $200 maximum credit for windows, or even $500 available for doors and other products.
It will be interesting to see how much enthusiasm there is to push for more. The American Architectural Manufacturers Association, the Window & Door Association and the Window & Door Dealers Alliance are among the industry groups that have indicated they would like to see the return of tax credits, but the comments we received reflect a lot of industry scepticism about such incentives.