Reps. Langevin, Welch introduce bill to extend and expand construction tax credits
U.S. Reps. Jim Langevin (D-RI) and Peter Welch (D-VT) introduced a bill that would extend residential construction tax credits that expired in 2017 and expand them to rental properties.
The legislation, Building Efficiently Act of 2019, would extend the expired New Energy Efficient Home Credit, which provides a tax credit of up to $2,000 for contractors who build new energy efficient homes. This tax credit encourages developers to build with an eye toward green design and explain to home buyers how small investments in efficiency can result in lower utility bills. It would also expand it to include owners of rental properties. Often, the landlord has to pay for energy efficiency upgrades, but the tenants, not the owner, realize the savings.
“Too often, developers neglect to make energy efficiency a priority when building and renovating properties because it’s deemed to be too expensive,” Langevin said. “What we truly cannot afford is high utility bills for Rhode Islanders, and the damage greenhouse gas emissions cause to our climate. The Building Efficiently Act renews and expands tax incentives, so developers are encouraged to construct more efficient properties. More energy efficient homes and businesses will strengthen the economy, lower pollution, and provide for a more sustainable future.”
The Building Efficiently Act creates a new tax credit worth up to 3.3 percent of the total cost of construction for residential rental properties that are planned to reduce energy use by 40 percent or more.
“Encouraging energy efficiency in the private sector is a win-win-win, as it saves money, creates local jobs and reduces environmental impact,” Welch said. “I’m proud to support the Building Efficiently Act, which provides incentives for efficiency retrofits. This is another common-sense idea whose time has come.”
The bill is supported by the American Institute of Architects (AIA) and the International Facility Management Association (IFMA).
“We would like to commend Rep. Jim Langevin for his leadership on fighting climate change. By encouraging more energy efficient building through expanding existing tax credits, the Building Efficiently Act isn’t just good for the environment, it is also good business,” AIA Chief Executive Officer Robert Ivy said. “As the Committee on Ways and Means considers its policy response to the climate crisis, we urge the members to pass this legislation.”
