Congress, President Approve Extension of Tax Credit For Builders of Manufactured Homes
Last Friday morning, Congress passed and President Trump signed into law an extension of the Energy-Efficient New Home Tax Credit (45L credit) as a part of their two-year budget agreement and stopgap spending measure. The bill also contained extensions of the federal flood insurance program, deductible mortgage insurance premiums, and the tax credit for energy-efficient improvements to residential homes (such as high-efficiency water heaters, air conditioners, and furnaces), including manufactured homes. The 45L credit expired in December of 2016, but passage of Friday’s bill makes the credit retroactive for 2017.
Energy-Efficiency Tax Credit Offers Manufacturers Incentive To “Go Green”
The 45L credit offers manufactured home builders three ways to be rewarded for building more energy-efficient homes:
– 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 for site-built homes present in the Energy-Efficient New Home Tax Credit
– Alternatively, 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
– Manufactured homes can also qualify for a $1,000 credit if they are constructed to meet ENERGY STAR certified home requirements
Passage of Extension Marks Victory For MHI, Industry At Large
Passage of a retroactive extension of the 45L credit represents a major victory for both the factory-built housing industry and MHI, the national trade organization that represents it. Part of MHI’s service to the industry includes advocating for public policies that empower American homebuyers and builders of manufactured homes. MHI has worked with House and Senate tax committees to advocate for the annual extension of the 45L credit for many years, and they were a consistent and strong advocate in Washington D.C. for the new extension. Last July, MHI submitted a letter to the Senate Finance Committee arguing that the 45L credit is an important incentive that has promoted and improved energy efficiency for manufactured homes, and provided significant monthly energy savings to millions of Americans that live in them.
Since the 45L credit is extended annually, MHI plans to continue to advocate before the tax committees in Congress to ensure it’s continued in the years to come, arguing that it provides a crucial investment in energy-efficient manufactured homes and significantly eases the financial burden of energy costs on hard-working American families. With an economy that’s still on the rise and energy efficiency becoming increasingly important, it seems likely their argument will continue to convince lawmakers in Washington D.C. that energy-efficient manufactured housing is an asset to both American homebuyers and the American economy at large.