WDMA Asks for Reconsideration of Energy Efficient Tax Credits

September 22, 2011

The Window and Door Manufacturers Association is urging House members to reconsider energy efficiency tax incentives, in particular the tax credit for windows, doors and skylights scheduled to expire at the end of this year. WDMA submitted a statement today to the House Ways and Means Committee hearing devoted to energy tax policy and tax reform. 

In the statement, WDMA points out that in recent years the tax incentives have helped make energy efficient home improvements more affordable for a wide spectrum of the American public and saved thousands of U.S. manufacturing and construction jobs. The organization also asserts that a properly-focused residential tax credit, at a more robust level than the 2011 credit, can efficiently and effectively spur significant private investment in energy saving measures.

By all accounts, the tax credits have been hugely popular with the American homeowner, particularly the middle class, in 2009 and 2010, according to WDMA. It reports that preliminary data for 2009 from the Internal Revenue Service shows that taxpayers making under $100,000 a year claimed two-thirds of the credits.

"The bottom line is that the tax credit has been hugely popular with the American public because it works," states Michael O'Brien, WDMA president. "We are continuing to educate members of Congress about restoring the credit to a more robust level to improve energy efficiency and preserve jobs."

In response to committee concerns about inadequate measures in place at the IRS to verify homeowner eligibility for the tax credit, WDMA has recommended consumer-friendly verification techniques to the IRS with the goal of improving the system for assuring that the tax credits claimed on returns are actually for qualifying energy efficient windows, doors and skylights. Currently, no documentation is provided on tax returns about the qualifying product, officials note.