Provisions in the $858 billion federal tax bill signed into law by President Obama on Dec. 17 could be bad news for home owners interested in remodeling projects to conserve energy.
The law slashed the popular tax credits for energy-efficient remodeling from the current 30% of an improvement’s cost ($1,500 maximum per taxpayer) to a 10% credit, with a $500 maximum for expenditures on insulation materials, exterior windows and storm doors, skylights and metal and asphalt roofs that resist heat gain. The law also clamped new dollar-specific limits on key improvements that had been eligible for 30% credits. These include a $150 tax credit limit on the costs of energy-efficient natural gas, propane and oil furnaces and hot water boilers, plus a $300 credit limit on the costs of central air-conditioning systems, electric heat pump water heaters, biomass stoves for heating or water heating, electrical heat pumps, and natural gas and propane water heaters.
The new law also limits allowable tax credits for energy-efficient windows installed during 2011 to a total of $200, compared with the previous $1,500. On top of that, it prohibits taxpayers who have taken total tax credits in past years exceeding $500 from claiming any additional credits on energy-conservation projects they undertake in the coming year.
Donna Shirey, chairman of NAHB Remodelers Council and president of a contracting firm in the Seattle area, said the gutting of energy-efficiency credits “is a big step backward. It’s bad for the environment, bad for consumers and, of course, bad for jobs in our economy. We’re heading the wrong way here, sending absolutely the wrong message.”
Washington Post (12/30/10); Kenneth R. Harney
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Tuesday, January 11, 2011
Banks Open Loan Spigot; Uptick in Lending to Businesses Is Expected to Accelerate
Moody’s Analytics estimates that commercial and industrial lending in the fourth quarter grew 0.2% from the third quarter, to $1.22 trillion, the first quarterly increase in two years. Moody’s predicts such lending will rise 3% in 2011.
Until recently, a chronic lack of lending to businesses was seen by economists as one of the obstacles to healthy recovery. Commercial and industrial lending “is the last thing that turns in a business cycle,” said Mark Zandi, chief economist of Moody’s Analytics.
Coming off the dramatic lending drop after the financial crisis struck, recent increases in commercial lending reported by banks are modest. The amount of business loans outstanding remains well below historical levels. In addition, new activity varies significantly from bank to bank and industry to industry. Still, the uptick is notable, say banking analysts.
Wall Street Journal (12/30/10); Ruth Simon
Until recently, a chronic lack of lending to businesses was seen by economists as one of the obstacles to healthy recovery. Commercial and industrial lending “is the last thing that turns in a business cycle,” said Mark Zandi, chief economist of Moody’s Analytics.
Coming off the dramatic lending drop after the financial crisis struck, recent increases in commercial lending reported by banks are modest. The amount of business loans outstanding remains well below historical levels. In addition, new activity varies significantly from bank to bank and industry to industry. Still, the uptick is notable, say banking analysts.
Wall Street Journal (12/30/10); Ruth Simon
EPA stormwater rules making 2011 difficult for home builders, developers
A flurry of recently issued storm water and regulatory requirements that give new muscle to the U.S. Environmental Protection Agency — with more regulations on the way — are likely to make 2011 a difficult year for home builders and developers as they struggle to rebound from the deepest housing recession in more than 70 years, according to a report by NAHB.
The EPA is also expected to re-propose a revised numeric limit to its Construction and Development Effluent Limitation Guidelines Rule (ELGs) early this year.
Read the entire article at Nations Building News by clicking here.
The EPA is also expected to re-propose a revised numeric limit to its Construction and Development Effluent Limitation Guidelines Rule (ELGs) early this year.
Read the entire article at Nations Building News by clicking here.
Mortgage Interest Deduction Primarily Benefits Middle Class
According to a study just completed by NAHB, the benefits of the mortgage interest and real estate tax deductions are collected primarily by the middle class.
The deductions for mortgage interest and real estate taxes are important and long-established tax provisions that benefit homeowners and stakeholders in the housing sector. As a result of recent proposal to increase taxes to address the long-term federal budget structural deficit, these deductions have been called into question.
The data and estimates in the study demonstrate that the benefits of these deductions are collected primarily by middle-class taxpayers, with incomes between $50,000 and $200,000. Moreover, greater benefits are earned by larger households and families, such as those with children. The data also show that as a share of household income, larger benefits are collected by families with less than $200,000 income, meaning that these tax rules make the tax system more progressive.
Read the entire report at NAHB.org by clicking here.
The deductions for mortgage interest and real estate taxes are important and long-established tax provisions that benefit homeowners and stakeholders in the housing sector. As a result of recent proposal to increase taxes to address the long-term federal budget structural deficit, these deductions have been called into question.
The data and estimates in the study demonstrate that the benefits of these deductions are collected primarily by middle-class taxpayers, with incomes between $50,000 and $200,000. Moreover, greater benefits are earned by larger households and families, such as those with children. The data also show that as a share of household income, larger benefits are collected by families with less than $200,000 income, meaning that these tax rules make the tax system more progressive.
Read the entire report at NAHB.org by clicking here.
Thursday, January 6, 2011
Judges needed for HBA of Columbia REGAL Awards
The HBA of Columbia is seeking real estate professionals interested in participating as a judge for their 2010 REGAL Awards. The Sales & Marketing Council of Greater Columbia will hold its 22nd Annual REGAL Gala celebration in February 2011 and needs a little of your time to help them in a VERY BIG way!
This year’s judging will take place on Friday, January 28th from 9:00 a.m. – 5:00 p.m. All judges are invited to arrive on Thursday evening, January 27th, to enjoy a cocktail hour and dinner together. Hotel accommodations will be provided by and paid for by the Home Builders Association of Greater Columbia if accommodations are needed. Breakfast and lunch will also be provided the day of judging.
Entries will be judged in the following categories: Product Design, Interior Merchandising, Best Website, Best Special Promotion, Best Green Built Home, Builder Executive of the Year, Mortgage Banker of the Year, Marketing Director of the Year, Community of the Year and Phoenix Award.
If you are interested or have any questions please contact Heather McDonald at 803-256-6238 or heather@columbiabuilders.com.Tom Dillard named to board of Southern Living Custom Builder program
Tom Dillard, president of Dillard-Jones Builders, LLC, of Greer, SC, and immediate past president of the HBA of Greenville, has been named to the board of directors of the Southern Living Custom Builder program. Board members serve a three-year term with a focus on improving the national magazine’s program for custom builders and its sponsors, said Kristen Payne, executive director of the Southern Living Homes Group.
The Southern Living Custom Builder program is an invitation-only network of about 100 builders from across the country. Members are chosen for their experience and knowledge and reputation in the marketplace, the organization said. Builders are required to reapply each year and are evaluated by Southern Living to assure they meet the standards of the program.
Dillard-Jones Builders was named a member of the Southern Living Custom Builder program in 2006 to represent the national lifestyle magazine in the Greenville, SC, market. In 2009, the company was named the Southern Living Custom Builder Member of the Year, becoming the first South Carolina home builder to receive the national award. In 2010, the company presented its third Southern Living Showcase Home – a home designed and built for LEED for Homes certification that will be incorporated into the Southern Living collection of national house plans.
Established in 2004, Dillard-Jones Builders specializes in custom residential construction ranging from the $500,000’s to more than $2 million.
Wednesday, January 5, 2011
Dan Rawls installed as Greenville County Councilman from District 26
Dan Rawls was installed January 4 as the newest member of Greenville County Council. Rawls is a past president of the Home Builders Association of Greenville and the Home Builders Association of South Carolina.
Rawls, a Republican, won the seat vacated by Judy Gilstrap, who gave up the seat to run for the S.C. House of Representatives. South Carolina Builders PAC supported Rawls' campaign.
Rawls told the Greenville News his number one priority is cutting crime.
Rawls continues to be an active member of the Home Builders Association. He serves as a Director of the HBA of Greenville and a Life Director of the Home Builders Association of South Carolina and the National Association of Home Builders.
Also on January 4 Butch Kirven was reelected chairman of Greenville County Council and Dr. Bob Taylor was reelected vice chairman.
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