On June 20, 2019, the House Ways and Means Committee approved legislation that would provide a retroactive renewal and extension of many expired—but significant—housing tax provisions, including the Energy-Efficient New Home Tax Credit (45L tax credit). MHI has been a consistent voice on Capitol Hill advocating strongly for the extension of the 45L tax credit. Most recently, the 45L tax credit was a key talking point during MHI’s Legislative Fly-In earlier this month. MHI has continually worked with House and Senate tax committees to advocate for the annual extension of the credit.
Introduced by Rep. Mike Thompson (D-CA), the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R. 3301), would retroactively extend expired housing tax provisions—including the 45L tax credit—for 2018 and extend them through Dec. 31, 2020. This is one year longer than the bipartisan bill introduced earlier this year in the Senate.
Established by the Energy Policy Act of 2005, the 45L tax credit was initially scheduled to expire at the end of 2007. However, Congress has retroactively extended the tax credit each year through 2017. It is important that Congress extend the 45L tax credit to ensure continued certainty in the marketplace for both builders of manufactured homes and their customers.
Under the 45L tax credit, builders of manufactured homes qualify for a $2,000 credit if they conform to Federal Manufactured Home Construction and Safety Standards (FMHCSS) and meet the energy savings requirements of site-built homes. In lieu of the above, builders of manufactured homes can qualify for a $1,000 credit if they conform to FMHCSS and reduce energy consumption by 30 percent relative to the International Energy Conservation Code 2006. Alternatively, builders can also qualify for a $1,000 credit if the manufactured home meets ENERGY STAR Labeled Home requirements.
The 45L tax credit is an important, market-driven incentive that has promoted and improved energy efficiency for manufactured homes and provided significant monthly energy savings for millions of Americans residing in manufactured homes.
If you have any questions, please contact MHI’s Government Affairs Department at MHIgov@mfghome.org.