Energy Efficiency Tax Incentives Letter

May 1, 2019

Dear Speaker Pelosi, Republican Leader McCarthy, Leader Schumer, Chairman Neal, Ranking Member Brady, Chairman Grassley and Ranking Member Wyden:

As companies and organizations representing millions of workers in energy efficiency, construction, manufacturing and other fields, we write to urge you to modernize and extend key tax incentives for energy efficiency that expired more than a year ago.

The expiration of three efficiency incentives on Dec. 31, 2017, left the U.S. tax code without any direct incentives for energy efficiency. This is a glaring and urgent omission in both climate policy and economic policy, and we urge you to address it as quickly as possible. We view this as a bipartisan opportunity that would accomplish a number of shared goals: Efficiency incentives have the potential to significantly reduce energy costs for consumers across the country, drive down carbon emissions, and stimulate job creation and economic activity.

Already, energy efficiency is by far the largest sector in the clean energy economy, supporting more than 2.3 million jobs across the country, the vast majority of which are in construction and manufacturing. Additionally, energy efficiency is widely viewed as the single most effective solution for addressing climate change.

Homes and buildings under construction or renovation today will likely be in use for 50 to 100 years, while energy intensive equipment such as air conditioners and furnaces will likely be used for a decade or more. As a result, by not incentivizing efficiency now in a sector that accounts for 40 percent of U.S. energy consumption, we are locking in unnecessary energy waste and carbon emissions for decades to come while also weakening U.S. economic productivity and competitiveness.

Specifically, we ask that you incorporate the attached updates to the 25C incentive for homeowner efficiency improvements and 45L incentive for new home construction, and pass a forward-looking, multi-year extension that would provide the certainty needed for consumers, manufacturers, contractors and others to fully capitalize on the incentives. The expired incentives, as written, are outdated and no longer reflect the current market for high-efficiency equipment and building technologies. In some cases, such as for water heaters, the efficiency metrics referenced are obsolete.

These updates to the incentives, and the call for a multi-year extension, are endorsed by the undersigned companies and organizations. We also support a modernized, forward-looking, multi-year extension of the 179D incentive for commercial building efficiency improvements. We look forward to working with you on this important issue. If you have any questions, please contact Ben Evans at the Alliance to Save Energy at [email protected].


A.O. Smith
Air-Conditioning, Heating & Refrigeration Institute
Alliance to Save Energy
American Council for an Energy-Efficient Economy (ACEEE) American Institute of Architects
Andersen Windows & Doors
Association of Energy Engineers
Carrier Corporation
Citizens for Responsible Energy Solutions (CRES)
Covestro LLC
Daikin US Corporation
DFW International Airport
Energy Systems Group
Goodman Manufacturing
Hannon Armstrong
Hearth, Patio & Barbeque Association
Home Performance Coalition
Illuminating Engineering Society
Ingersoll Rand
Johnson Controls
Knauf Insulation
National Association of State Energy Officials
National Insulation Association

Natural Resources Defense Council
North American Insulation Manufacturers Association Polyisocyanurate Insulation Manufacturers Association
Sheet Metal and Air Conditioning Contractors National Association Signify
U.S. Green Building Councilcc: Members of the Senate Finance and House Ways and Means Committees

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