ARRA Provisions & Tax Incentives of Potential Benefit to Building Sector

The ARRA extends consumer incentives through 2010 and increases the cap on efficiency incentives from $500 to $1,500 per household. An overview of the legislative changes and details on the individual measures can be found on the Tax Incentives Assistance Project website.

Provisions, including tax incentives, that could bring opportunities to the building sector, include:

• Tax credits for the production of renewable energy are extended until at least 2012
• Research expenses associated with renewable, conservation, and carbon capture and sequestration could result in higher credits in 2009 and 2010
• DOE is authorized to provide grants up to 30% of the cost of installation of items such as fuel cells, solar, small wind, geothermal heat pumps, and combined heat and power systems
• EERE is receiving $21.4 billion for research, weatherization assistance, grants, and other programs
• The Department of Labor is allocated $750 million for job training, with significant focus on emerging industry sectors, including energy efficiency and renewable energy
• Federal agencies are allocated considerable funds for retrofitting and upgrading existing facilities to meet Federal energy and water-use requirements and alleviate any maintenance backlogs.