Bill might award tax credit to energy-efficent homes

Two members of the N.C. General Assembly are pushing legislation that would reward taxpayers for making their homes more eco-friendly.

Sens. Hamilton Horton Jr., R-Forsyth, and Ellie Kinnaird, D-Orange, have filed a bill that would provide an income tax credit to those who build energy-efficient homes or modify their existing homes to meet certain standards.

“This bill gives people an extra incentive to make their homes more energy-efficient and environmentally friendly,” Horton said.

“Anything saved in terms of energy is to the good of the environment and to the homeowner.”

Kinnaird said the legislation was prompted by environmental policies she and Horton studied while serving on the state Energy Policy Council.

The bill distinguishes between federal- and state-certified energy-efficiency standards.

Taxpayers who build homes that meet federal standards would receive a $500 credit, and those who modify their existing home could receive as much as $1,000.

Building a new home that meets state criteria would entitle a taxpayer to a $1,500 credit, while modifying an existing home could net a credit as high as $2,000.

“The taxpayers are not getting a whole lot of money back on these returns,” Kinnaird said. “But we think they will be enough to encourage people to build these types of homes.”

Federal standards require new homes to be at least 30 percent more energy-efficient than those built to the 1993 Modal Energy Code, or 15 percent more efficient than the state’s regulations, whichever standard is more rigorous.

The most common additions are high-performance windows, updated water-heating equipment, controlled air filtration and tighter duct systems.

To gain state certification, the home must be certified under the N.C. HealthyBuilt Homes Program, which gives credit for homes that qualify under the Energy Star program.

“The main reason people aren’t building these homes is lack of awareness,” said Jamie Hager, program coordinator for N.C. HealthyBuilt Homes.

“There is a financial factor, but the technology used in energy-efficient homes is not much more expensive than in those that aren’t.”

Hager added that any home can be made energy-efficient without too much hassle and that she is excited about the possibility of extra incentives.

Kinnaird said that she is hopeful that the bill will make it through both chambers, but that competition from other lobbying groups might be a major setback for the legislation.

“The problem is that we already have a tight budget, and every time we give a tax credit, the state loses revenue. That’s the real issue that could cause this bill to lose steam.”

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