Page 10 - Builder Brief December 2022

EXECUTIVE VICE PRESIDENT
WHAT HAPPENS IN WASHINGTON IMPACTS US ALL
On August 16th, President Biden signed the Inflation Reduction Act (IRA) into law. The IRA contains several initiatives to put the U.S. on a path to roughly 40 percent emissions reductions (below 2005 levels) by 2030. While this initiative has some value, it is overreaching and adversely impacts all of us, especially first-time homebuyers, and our neighbors of modest means.
Adopting the IRA creates and/or refines several clean building and clean energy efforts to influence how new homes and communities are designed and built and compel consumers to upgrade their existing homes.
Specific programs impacting the single-family construction and remodeling industry include:
y AdvancingEnergyCodes.Grantstostateandlocalgovernmentsto adopt energy codes that meet or exceed the 2021 International Energy Conservation Code (IECC) and additional funding if the adopted codes meet or exceed the IECC’s zero energy provisions or an equivalent stretch code;
y CleanBuildingIncentives.Consumerhomeenergyrebatesandtax credits for improving overall energy efficiency, appliance upgrades, and/or non-appliance upgrades, such as adding insulation, making ventilation improvements, or installing new doors or windows;
» HOMES Rebate Program. Funding for state energy offices to develop rebate programs to reimburse homeowners $2,000-$4,000 for whole house energy improvements. (Cannot be combined with High-Efficiency Electric Home Rebate).
» High-Efficiency Electric Home Rebate. Funding for state energy offices to develop rebate programs for qualifying electrification projects, such as appliance upgrades or other actions. (Cannot be combined with HOMES Rebate).
» Modified 25C Nonbusiness Energy Property Tax Credit. Improves program to allow homeowners to claim a credit of up to 30 percent of the cost of qualified products or equipment that help reduce energy use.
» Modified 25D Residential Clean Energy Tax Credit. Provides homeowners with a credit for installing solar electric, solar water heating, fuel cells, small wind, biomass fuel stove and geothermal heat pumps and battery storage.
» Modified 45L New Energy Efficient Home Tax Credit. Provides single-family and multifamily builders with a tax credit for meeting specific energy efficient requirements.
y HUD Affordable Housing. Grants and loans to make affordable housing units more resilient and energy and water efficient.
The agencies are still determining how these programs will be implemented and how funding will be dispersed. We must stay engaged with what is happening.
We have already encountered these changes locally with the San 10 DECEMBER 2022 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
KRISTI SUTTERFIELD
Antonio City Council’s recent proposed changes to the adoption of the 2021 International Energy Conservation Code (IECC). President-Elect Shad Schmid; First Vice President Tim Pruski, Government Affairs Co-Chair Joe Leos; Immediate Past President Ed Berlanga, and I reached out and met with City Council members to share the detrimental impact that the amendments to the energy code would have and how it would affect affordability, especially in San Antonio.
On November 10th, we provided input to the San Antonio City Council but they still voted to pass an additional energy code amendment that requires all new homes built in San Antonio to be Electric Vehicle (EV) Ready versus EV Capable. The approximate cost to do this is $800 to $1,000.
We provided hard data on the dramatic price increase that the proposed increase in the ceiling and attic insulation would have on the cost of a new home because of unintended consequences. Taking an R-30 insulation factor in the ceilings and attic to R-49 from R-30 would cost $10,000 to $11,000 in most homes. The Development Services Department (DSD) did an exceptional job in showing the Mayor and Council members that the $11,000 cost to upgrade the insulation had a diminishing return and the same result could be accomplished by increasing from an R-30 to an R-38. We were successful defeating this initiative saving thousands of dollars to new home buyers.
We invite you to attend our next Government Affairs meeting on Tuesday, December 13th at 1pm with the DSD team from San Antonio. Join us for our working lunch Board meeting at noon, just let me know you plan to attend so that we can have your lunch waiting on you. Thank you for being a member!