Despite objections from some Senators who wanted to move the energy piece separately, Sen. Majority Leader Harry Reid (D-NV) moved for a vote on the bipartisan amendment, sponsored by Sen. Maria Cantwell (D-WA) and Sen. John Ensign (D-NV), as part of the broader housing bill.  With overwhelming bipartisan support, the Senate adopted the amendment by a margin of 88 to 8.  Although the House also recently passed a similar extension of energy tax incentives, the negotiating is far from over because of the continued disagreement over how to pay for them.  The Senate measure adopted does not include any tax offsets, already causing House Leaders to balk at it.

Notably, the amendment contains a number of extensions that NAHB has been working to pass for a number of months:

1. Section 45L  –

   New Energy-Efficient Home Tax Credit.  The amendment extends the tax credit for an additional 2 years to Dec. 31, 2010.  It also modifies the credit to allow builders to occupy the residence themselves.

2. Section 179D –

   Multifamily/Commercial Building Deduction.  The amendment extends the deduction through the end of 2009.  It also increases the amount from $0.60 per square foot to $0.75 for partial allowance and from $1.80 per square foot to $2.25 for full allowance.

3. Section 25C –

   Energy Efficient Property Credit (Existing Homes).  The amendment extends the expired credit to the end of 2009.  It also adds a credit for residential biomass heating stoves (e.g., pellet stoves or wood stoves) that can achieve a 75% thermal efficiency rating.

NAHB will now work with coalition partners to gain support in the House for adoption of the Senate measure. 

If you have questions or need additional information, e-mail Elizabeth Odina at NAHB, or call her at 800-368-5242 x8570. [return to top]