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Monday, February 13, 2012

New Homebuyers Energy Savings Tax Credit Bill Passes House 44-20, Introduced in Senate

Green chamber of commerceShort-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

CS HB 177 the New Homebuyers Energy Savings Tax Credit plan that will create new construction jobs and generate important revenue passed the House Floor last evening and introduced to the Senate today. HB177 passed the House Consumer and Public Affairs Committee and the House Taxation and Revenue without opposition.

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.

"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," said Representative Brian Egolf. "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. I look forward to bringing this bill to the House Floor."

"This tax credit goes directly to the consumer, for either upgrading a foreclosed home or buying a new energy efficient home," said Lawrence Rael, President of the New Mexico Green Chamber of Commerce. "The goal is to get people into energy efficient homes while spurring growth in the construction industry."

"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 upgrading foreclosed properties that are reducing property values in communities across our state."

The Plan includes a refundable:

$4,000 State tax credit or rebate for purchasing a HERS 60 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.

The Plan would also offer owners of foreclosed homes:

$4,000 State tax credit or rebate for a 50 percent energy reduction $6,000 State tax credit or rebate for a 75 percent energy reduction $8,000 State tax credit or rebate for a 100 percent energy reduction

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 bill is supported by the New Mexico Green Chamber of Commerce, the New Mexico Association of Counties, the New Mexico, Central and Santa Fe Home Builders Association, the NM Green Building Council and the Albuquerque Chamber of Commerce.

February 13, 2012 at 07:48 AM in Brian Egolf, Building Code Energy Efficiency, Energy, Environment, Jobs, Lawrence Rael, NM Legislature 2012, Taxes | Permalink

Comments

Glad to see Architechture2030, good ideas, I hope it passes.

Posted by: bg | Feb 13, 2012 9:53:49 AM