Is a Tax Credit Extension a Good Idea?
Tax credits for energy effircient home improvements are scheduled to expire at the end of year. Now, new draft legislation has emerged in the Senate that would extend and even expand those credits. Yes, I'm sympathetic to the view of many that government should stay out of our business, but I think that's good news.
The bad news is that, as written, the initial bill provides inadequate credits for windows, particularly compared to other industries' products. Why should a heating system be eligible for a tax credit up to $3,000 and a houseful of R-5 windows only $1,000? To recognize the importance of a quality installation, the cost of labor covered in the insulation arena is eligible for the credit. Isn't a quality installation important for windows? Why aren't our installation costs included?
Yes, the initial bill has flaws, but I still think it should be applauded. What do you think? That's our poll question of the week. And I take Senators Snowe and Bingamon at their word that their initial draft is just that–a draft. They say they are open to comments and suggestions. I hope our industry leaders take them up on the offer and provide them with useful feedback. And I'd like to hear your feedback too. Email me or post your comment below. What provisions would you like to see part of an energy efficient tax credit? And let's not be selfish, what provisions do you think would deliver the most bang for the government buck?