President Bush signed into law today the comprehensive energy
bill that Congress passed in July. It marks the culmination of
four years of effort by a number of groups including the Glass
Association of North America (GANA)'s Flat Glass Manufacturing
Division (FGMD) and gives tax credits to homeowners and businesses
that use energy-efficient glazing products.
"The benefits of the new law will be felt by the industry
as a whole," said Steve Farrar of Guardian Industries Corp.,
quoted in the GANA Glass Reflections. "The tax incentives
should encourage various parts of our customer base to upgrade
their current or planned glazing with energy-efficient products."
With the new law, the tax credits will be available for homes
acquired or property placed in service after December 31, 2005
and will close on December 31, 2007.
The law will have a far-reaching effect, touching those in commercial
buildings, new homes, manufactured homes and existing homes. Commercial
buildings will receive credit up to $1.80 per square foot for
energy efficient commercial building property for buildings certified
to be 50 percent more efficient than reference building using
ASHRAE 90.1-2001, and a partial allowance of up to $.60 per square
foot for subsystems certified to meet the targets to make the
whole building 50 percent more effective (if all systems were
incorporated) is available.
New homes will receive a tax credit of $2000 if they are certified
to be at least 50 percent more energy efficient than a reference
home (as constructed in accordance with Chapter 4 of IECC 2003
and manufactured homes will be available for the same tax credit
if they can prove to be similarly energy efficient (compared to
a reference home conforming to Federal Manufactured Home Construction
& Safety Standards). Existing homes will be able to receive
up to 10 percent of the amount paid for "qualified energy
efficiency improvements" as a tax credit. Windows and other
types of glazing are included.