Energy-Efficient Roofing Tax Incentives
Bipartisan legislation to create "green" jobs and protect the environment!
Accelerating the adoption of energy-efficient roofs on commercial buildings will
create new "green-collar" jobs in the construction industry while also enhancing
the environment by conserving energy and reducing carbon emissions. With unemployment
in the construction industry at 16.5 percent, Congress should enact legislation
to increase investment in energy-efficient commercial roofs to stimulate economic
growth as well as provide environmental benefits.
The Green Roofing Energy Efficiency Tax Act (GREETA—H.R. 426) will create 40,000
new "green" jobs within the roofing industry, add $1 billion of taxable annual revenue
to our economy, reduce carbon emissions by more than 20 million pounds and reduce
U.S. energy consumption by 13.3 million kilowatt hours annually. It also will save
small businesses billions of dollars through a simpler and more equitable system
of taxation and lower energy costs. Introduced by Reps. Pascrell (D-N.J.) and Herger
(R-Calif.), GREETA is a bipartisan solution to a problem that restricts the movement
toward energy-efficient roofs in the commercial building sector, a major source
of carbon emissions. The problem is the Internal Revenue Code, which requires that
commercial roofs be depreciated over a 39-year schedule even though the average
life span of such a roof is only 17.5 years. This disparity is a major disincentive
for building owners to replace older failing roofs with new energy-efficient roof
systems.
GREETA will rectify this problem by allowing building owners to use a realistic
20-year depreciation schedule for roof systems that meet the benchmark ASHRAE 90.1
energy-efficiency standard. Providing a realistic depreciation schedule for commercial
roofs will accelerate the adoption of energy-efficient roofs of all types across
the nation.
NRCA also supports the Energy-Efficient Commercial Roofs Act (EECRA—H.R. 2615),
which would provide a new 30 percent tax credit for energy-efficient roofs installed
on commercial and high-rise residential-rental buildings. Under this legislation,
introduced by Reps. Larson (D-Conn.) and Heller (R-Nev.), a qualified roof must
have a minimum R-value (insulating effectiveness) that is 75 percent more stringent
than required under existing state and local building codes. The R-values chosen
for this legislation are set at levels to achieve maximum energy efficiency. The
tax credit would cover commercial roofs placed in service from 2009 through 2013.
A recent report that used DOE's EnergyPlus simulation modeling shows that significant
energy savings and carbon emission reductions can be achieved through higher insulation
levels in commercial buildings' roofs.
GREETA and EECRA provide new incentives to reduce energy consumption in commercial
buildings, which account for 18 percent of U.S. energy use and carbon emissions.
These bipartisan bills have the support of business associations as well as organized
labor. For more information, please contact NRCA's Duane Musser at (202) 546-7584
or
dmusser@nrca.net.
(November 2009)