Breaking News: Metal Roofing Benefits from the "Bail Out" Bill
As you probably are aware, on October 3, 2008, President Bush signed into law the $700 billion Emergency Economic Stabilization Act of 2008 (H.R. 1424), commonly known as the "Wall Street Bail Out" plan. What you may not know, however, is that in addition to helping the banking industry, the bill also includes provisions beneficial to the metal roofing industry.
Specifically, the Energy Improvement and Extension Act of 2008, which was attached to H.R. 1424, provided extensions to tax incentives for renewable energy technologies and for energy efficiency improvements.
As a result, extensions were given to the tax incentives that were originally a part of the Energy Policy Act of 2005 (EPAct 05). Some of those incentives had expired at the end of 2007. But now, they are alive for at least another year and even longer in some cases.
The EPAct 05 law provided tax incentives for renovation to homes including up to a $500 tax credit for homeowners who install an Energy Star labeled prepainted metal roof. The newly signed "bail out" bill now renews that $500 homeowner tax credit for metal roofs installed in calendar year 2009. That's a message that we in the metal roofing industry need to begin communicating to consumers right away.
Consumer Messages
Learn how your savings in cooling costs can save your customers on their federal taxes.
We know by tracking visitors to the MRA website that information on the tax benefits of installing a metal roof ranks very high on the list of most-visited sections of the site. Therefore, we know that the tax credit message is very compelling to consumers. While we had to remove that section of the site when the credits expired in 2007, you'll notice that we've already prominently featured the information regarding the extension on the site. We've listed below a consumer-friendly message that we encourage all MRA manufacturers and contractors to feature in communications with homeowners and contractors, as it will help support our sales efforts:
"As a result of the Emergency Economic Stabilization Act of 2008, homeowners who install an Energy Star® labeled prepainted cool metal roof in 2009 may be eligible for a tax credit up to $500."
Detailed Industry Information
The tax incentive pertains to "qualified energy efficient improvements" which are, as defined by the new law: "any energy efficient building envelope component which meets the prescriptive criteria for such component established by the 2000 IECC (or in the case of a metal roof with appropriate pigmented coatings or an asphalt roof with appropriate cooling granules, which meet the ENERGY STAR program requirements).
You'll notice that the new bill now refers to asphalt shingle roofing as being an energy efficient building envelope component. That is a new addition to the bill, and one you should keep in mind as you speak to prospective homeowners. Likewise the definition of building envelope components now states "... any metal roof or asphalt roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings or cooling granules which are specifically and primarily designed to reduce the heat gain of such dwelling unit."
Incentives for Contractors
Other tax incentives from the EPAct 05 bill were extended. The new home tax credit of $2, 000 for contractors who build dwellings with annual heating/cooling energy usage reduced by 50% compared to a standard dwelling complying with the 2004 Supplement to the IECC are extended through 2009. And the commercial tax deduction of up to $1.80/ft2 for building owners who design a structure that achieves a 50% reduction in annual energy cost compared to a base building defined by ASRAE 90.1-2001 is now extended through 2013. Those savings in energy costs refer only to heating, cooling, ventilation, lighting and water heating.
The Metal Roofing Alliance is dedicated to educating consumers and contractors about the many benefits of residential metal roofing. Contractor members receive a wide variety of benefits, including marketing support, and qualified homeowner leads. For more information on the benefits of joining the Metal Roofing Alliance, please visit www.metalroofing.com
The Metal Roofing Alliance is a consortium of metal roofing manufacturers, suppliers, distributors, and contractors with the main goal of educating consumers about the many benefits of metal roofing.
