NARI Calls for Reinstatement of Energy Tax Credits
The Des Plaines, Ill.-based National Association of the Remodeling Industry (NARI) is calling for the full reinstatement of the 25C tax credit program for residential energy-efficient improvements as a way to create jobs in the remodeling industry.
The Energy Policy Act of 2005 established a federal tax credit for energy-efficient home improvements (found in section 25C of the tax code). The 30 percent credit applies to energy-efficiency improvements for existing homes and the purchase of high-efficiency heating, cooling and water-heating equipment. Homeowners were able to take a combined credit up to $1,500 for equipment purchased during a two-year period until 2010 when the lifetime credit cap was lowered to $500. The tax credit expires at the end of 2011, and some industry observers don’t expect it to be renewed.