RESNET® NEEDS YOU! SIGN THE LETTER OF SUPPORT TO CONGRESS TODAY RESNET® and our strategic allies are urging the home energy rating industry and its construction industry clients to lend their voice to protect the 45L Energy Efficient Homes Tax Credit. Extended through 2032 by the Inflation Reduction Act (IRA), the 45L tax credit provides builders up to $2,500 for homes labeled as EPA’s ENERGY STAR and $5,000 labeled as DOE’s Net Zero Energy Ready programs. The tax credit saves homebuyers’ energy costs while boosting the demand for high performance energy efficient homes. Besides these energy savings, the tax credit drives business for builders and contractors creating American jobs across the nation. With the recent election all the clean energy tax provisions of the IRA are at risk. As the new Congress convenes in 2025 by being part of the IRA the 45L tax credit will be scrutinized for possible reductions or even elimination. Adding your voice to the support for 45L credit is critical. Add your name to a letter to Congress today to ensure this tax credit will help keep its powerful benefits. Make your voice heard today! Read the letter to Congress below: February #, 2025 RE: 45L Energy Efficient Home Tax Credit Dear Chairman Crapo, Chairman Smith, Ranking Member Wyden, and Ranking Member Neal: We, the signatories of this letter support the 45L energy efficient home tax credit and ask that it not be legislatively eliminated or weakened. As the Congress begins consideration of comprehensive tax reform, we’d ask that you consider the ongoing benefits of the New Homes Energy Efficient Tax Credit (IRC Section 45L). This tax credit was initially passed in 2005 by a GOP controlled House and Senate and signed by President George W. Bush. Since that time, it has been extended and updated several times, with bi-partisan support. The policy has proven successful in enabling builders to construct more energy efficient properties that provide homeowners with significant cost savings every month on their utility bills. As the country grapples with skyrocketing housing costs, it would be counterintuitive to eliminate this Republican initiative that ultimately drives down homeownership costs. We note that the 45L tax credit was amended as part of the Inflation Reduction Act (IRA). For that reason, we hope that it will be reviewed with an understanding that this is not an offshoot of the Biden climate agenda, but rather something championed by the GOP several decades ago. One could argue that the policy was enhanced by the IRA changes, which transformed the qualification criteria and made verification more stringent. By our estimates the overall score of the 45L tax policy was dramatically reduced while improving the integrity of the policy. The IRA changes made the credit available to homebuilders who construct Energy Star ($2,500), or Zero Energy Ready ($5,000) certified homes. We’d ask that the Committee compare the tax score of the 45L credit prior to 2022 and look at the score for those years where data is available, following the amendments made in the IRA legislation. We’d be happy to help provide further information on the range of energy savings homeowners can achieve in certain markets if they occupy a 45L compliant home. In most markets, this can be hundreds of dollars per year, which is then churned back into the local economy to pay for other daily necessities. In short, we hope the Committee will not, “throw the baby out with the bath water” as Congress seeks to eliminate other tax incentives that have not stood the test of time. We would encourage the staff to seek input from other stake holders including but not limited to the large customer homebuilders who have utilized this tax policy to great effect. Helping homeowners with overall affordability should be recognized as part of any comprehensive review. Add Your Name to Support 45L
