For Immediate Release: May 8, 2007

Sutton Co-Sponsors Bill to Promote Energy Efficiency in America's Homes and Businesses

Sutton co-sponsors H.R. 1385, the EXTEND the Energy Efficiency Incentives Act

Washington, D.C. - Congresswoman Betty Sutton announced today she is a cosponsoring H.R. 1385, the EXTEND the Energy Efficiency Incentives Act. This legislation would extend and enhance current energy efficiency tax credits, and create new credits for homeowners and businesses.

Under current law, homeowners can receive a maximum, lifetime $500 tax credit for the purchase and installation of products that save energy, such as energy efficient appliances and windows. The EXTEND Act would extend this credit past its 2007 expiration date and immediately offer a new, larger credit, available through 2011. The EXTEND Act would provide a sliding scale credit to homeowners that rises as the percentage of energy savings achieved increases. The credit would begin at $800 for homeowners achieving 20 percent energy savings and top-off at $4,000.

"The EXTEND Act will properly reward home owners that are already doing their part to make their homes more energy efficient and will provide an incentive for others to follow suit," Sutton said. "If we are serious about promoting a responsible policy, we should encourage families to take steps in their own homes.

"Nearly half of the energy bill for a typical single family home goes towards heating and cooling, costs that can be brought down dramatically, for instance, by installing energy efficient windows. Families spend another 13 percent of their energy costs by running their dishwasher, refrigerator and washer and dryer. Energy efficient appliances can further reduce a family's yearly energy bill. Providing assistance for families to purchase these energy saving technologies will save our families money year after year."

The EXTEND Act also provides benefits for businesses to become more energy efficient. Current law provides businesses with up to a $2,000 tax credit for the construction of homes that reduce energy consumption by 50 percent and a tax deduction equaling $1.80 per square foot of commercial property, if a retrofit or new construction yields energy savings of at least 50 percent. The EXTEND Act extends the $2,000 credit available to builders through 2011 and increases the per-square foot credit from $1.80 to $2.25. Additionally, the legislation extends a maximum $500 tax credit to businesses for the installation of energy efficient heating and cooling technology.

"It is imperative that we provide our local businesses with assistance to invest in energy-saving technology and appliances. Increasing energy efficiency will save our businesses money and help them be more competitive," Sutton said. "The EXTEND Act will help businesses overcome the initial overhead costs that can dissuade them from taking the initial steps towards greater energy efficiency. I hope my colleagues will join me in supporting the EXTEND Act to protect our environment, cut costs for our middle class families and give our local businesses a break on their energy bills."

Contact: Ian Mandel at 202-225-3401