Tuesday, January 24, 2012
Representative Egolf Introduces New Homebuyers Energy Savings Tax Credit Bill
From the The New Mexico Green Chamber of Commerce:
Representative Egolf Introduces New Homebuyers Energy Savings Tax Credit Bill Short-term Tax Credit Encourages Consumers to Buy New Energy Efficient Homes or Upgrade Foreclosed Homes, Creating New Construction Jobs, Improving the Existing Unsold Home Market and Generating Net State Revenues.
Today, Representative Brian Egolf introduced HB 177 the New Homebuyers Energy Savings Tax Credit plan that will create new construction jobs and generate important revenue. The plan, analyzed by the non-partisan research organization Architecture 2030, builds on the success of the federal First Time Homebuyers Tax Credit, as a means of increasing new homes sales and renovations in a distressed housing market. The plan marries a refundable state tax credit with energy reduction targets in order to dramatically increase private spending, stimulate new building construction, expand the local tax base and generate much needed jobs and tax revenue.
"I and my colleagues are focused on ideas that will create well-paying jobs and benefit our state's economy as a whole," said Representative Brian Egolf. "The Energy Efficient Home Income Tax Credit will create well-paying construction jobs, help New Mexico's working families save money on their utility bills, and make homes more affordable. The proposal will also bring major benefits to small businesses statewide and help move foreclosed properties off the auction block and into a family's future. This will be a big win for our recovering economy."
The Plan includes a refundable:
$4,000 State tax credit or rebate for purchasing a HERS 50 or equivalent home;
$6,000 State tax credit or rebate for purchasing a HERS 25 or equivalent home;
and a $8,000 State tax credit or rebate for purchasing a zero-net-energy or HERS 0 home.
Under the Plan, each dollar ($1) of State incentive would not only pay for itself, but would generate approximately:
$14.10 in construction spending and $7.19 in indirect and induced spending creating much-needed jobs;
$1.36 in State and Local Government taxes from construction spending, and $0.70 from indirect and induced spending; and
$0.11 in property taxes
"The New Homebuyer Energy Savings Tax Credit'-like the popular First Time Homebuyer Tax Credit-is focused on encouraging new homes sales which will help revitalize the construction market," said Ed Mazria, CEO of Architecture2030. "This tax credit also helps the existing home market, as it offers the same tax credit for purchasing and upgrading foreclosed properties that are sitting vacant and reducing property values in communities across our state."
"Our member businesses support the NM Homebuyers Energy Saving Tax Credit because it will create jobs, will help our construction sector get back on its feet, and will help families move into energy-saving homes," said Allan Oliver, CEO of the NM Green Chamber of Commerce. "This is a fiscally responsible measure, since the state receives the additional revenue prior to paying off the credit and it will sunset automatically in two years."
"Our state's homebuilding industry needs all the help it can get. This bill addresses the demand side of the energy efficient home market and could help stimulate new home construction. New Mexico home builders are national leaders in energy efficient home building, but we need customers demanding homes built beyond code minimums." Kim Shanahan, Executive Officer, Santa Fe Area Home Builders Association.
The New Mexico Green Chamber of Commerce is a non-partisan association with over 1,100 business members dedicated to advocating on behalf of clean energy, seizing the green business advantage, and supporting local economies. The NM Green Chamber of Commerce members believe that responsible business invests in people, protects air, land and water, and creates long-term sustainable profits
From reading this bill, it appears to leave manufactured homes in limbo, as it discusses homes "for which construction or renovation begins on or after July 1, 2012 and on or before June 30, 2014". What is the construction date of a manufactured home, the date it leaves the factory or the date it is placed on the property?
Posted by: Paul Lindsey | Jan 24, 2012 8:24:42 PM