On March 11, the Senate passed legislation to extend the Energy Star Tax Credit for one-year. The entire tax “extenders” package with an estimated cost of $137.9 billion included more than $30 billion in one-year extensions of tax breaks that lapsed last year. The bill was referred back to the Ways & Means Committee of the House of Representatives for consideration of revenue-raising offsets.
Manufacturers who build ENERGY STAR homes are eligible to receive a $1,000 tax credit while modular home builders are eligible to receive a $2,000 tax credit by exceeding the International Energy Conservation Code (IECC) by 50 percent.
House Ways and Means Chairman Sander Levin is pushing to get a tax “extenders” bill to the President’s desk by Memorial Day.
Recent developments have occurred indicating the overall package may feature a tax on “carried interest” that would target private equity managers. The changed is aimed at “carried interest” which allows real estate investment trusts, private-equity firms and other partnerships to pay tax rates on their profits that are lower than rates paid by salaried and hourly workers. This issue will affect our communities that are real estate partnerships. Also, carried interest would tax general partners at higher ordinary income tax rates as opposed to lower capital gains rates as they are taxed today.
MHI is part of a business coalition and other trade associations that has been active in opposing changing the current “carried interest” provision. The National Association of Counties and the US Conference of Mayors also have come out against this provision. Staff will monitor this issue and keep members apprised of any new developments. MHI will also be activating grassroots support from the states and the MHI-National Communities Council in opposing the “carried interest” measure.
MHI members can contact Rae Ann Bevington at email@example.com.