Energy Star Transition and Its Effect on NAHB Members

Several recent media reports suggest that the Energy Star program, a proven private-public partnership administered by the Environmental Protection Agency (EPA), is going through a possible transition period that could lead to its elimination.

Energy Star is an above-code voluntary program that many NAHB members have relied on for over three decades. The program:

• Provides certification for buildings and homes that meet certain energy standards,
• Sets energy efficiency standards for various products, including appliances, water heaters and lighting,
• Runs the popular Portfolio Manager software, and
• Serves as the baseline for certain programs and tax incentives.

Collectively, Energy Star promotes consumer choice and can help members and consumers save money on their energy bills.

NAHB is carefully monitoring developments concerning the program and will keep our members informed, as this is a fluid situation. If Energy Star is eliminated, it may affect state, local, and utility programs that connect certification to rebates and other incentives.

NAHB is also seeking clarification on how the potential elimination of the Energy Star program would affect tax credits linked to an Energy Star certification, such as the Section 45L tax credit for new energy efficient homes.

These energy tax credits are already under scrutiny within Congress, and elimination of the Energy Star program raises additional concerns about their future. Congress is also working on a comprehensive tax bill and is widely expected to push to eliminate many of the existing energy tax credits as an offset to reduce the cost of the overall tax bill.

NAHB supports energy efficiency in home building and remodeling, including retaining energy tax credits that promote the use of renewable energy technology, as well as voluntary energy efficiency programs for new homes, including Energy Star and the Section 45L tax credit.