The Manufactured Housing Institute’s Lobby Efforts Win Extension of Energy Tax Credit
Congress passed and the President signed into law an extension of the Energy-Efficient New Home Tax Credit last week.
The measure also is known as the 45L credit. It was part of a two-year budget agreement and stopgap spending bill in Congress.
Included in the agreement is extension of:
- Federal flood insurance program
- Deductibility of mortgage insurance premiums
- The tax credit for residential energy improvements
For example, the energy improvement measure offers considerations for high-efficiency water heaters, air conditioning units and furnaces.
The 45L credit expired in December 2016. However, the recent action on manufactured housing in Congress makes the credit retroactive for 2017.
Extension of the Energy-Efficient New Home Tax Credit fulfills one of MHI’s top legislative priorities for 2017. As a result, MHI has been a consistent voice on Capitol Hill advocating strongly for the extension of the tax credit, established by the Energy Policy Act of 2005.
45L History with Manufactured Housing in Congress
MHI has worked with House and Senate tax committees to advocate for the annual extension of this tax credit. In July 2017, MHI submitted a letter to the Senate Finance Committee as a part of its public call for proposals to improve the tax system and provide relief to middle class individuals and families.
MHI argued that the 45L credit is an important, market-driven incentive that has promoted and improved energy efficiency for manufactured homes. It also provides significant monthly energy savings for millions of Americans residing in them.
Under the 45L credit, manufactured homes qualify for a $2,000 credit. Homeowners are eligible if the home conforms to Federal Manufactured Home Construction and Safety Standards (FMHCSS) and meet the energy savings requirements of site-built homes.
In lieu of the above, manufactured homes can qualify for a $1,000 credit if they conform to FMHCSS and reduce energy consumption by 30 percent relative to International Energy Conservation Code 2006.
Alternatively, manufactured homes can also qualify for a $1,000 credit if they meet ENERGY STAR Labeled Home requirements.
In December 2015, MHI secured a retroactive extension of the credit, which previously expired in December 2014. Furthermore, MHI continues to advocate before the tax committees in Congress each year to ensure the credit remains.
The 45L credit provides a crucial investment in energy-efficient manufactured housing and substantially eases the financial burden of energy costs on hard working American families.
Also, for questions or more news on manufactured housing in Congress, contact MHI’s office of Government Affairs Department at (703) 229-6208 or MHIgov@mfghome.org.