Energy Efficiency for Affordable Housing Act
Summary
The "Energy Efficiency for Affordable Housing Act" aims to incentivize energy-efficient rehabilitation of affordable housing by amending the Internal Revenue Code. It increases the low-income housing credit for buildings that achieve enhanced energy performance. This is done by allowing a larger percentage of rehabilitation expenditures to be considered for the tax credit.
Expected Effects
The bill will likely increase investment in energy-efficient upgrades for affordable housing units. It also establishes standards and definitions for 'enhanced energy performance' and 'qualified retrofit plans'. This could lead to lower energy costs for residents and reduced environmental impact.
Potential Benefits
- Increased investment in energy efficiency for affordable housing.
- Reduced energy costs for low-income residents.
- Potential for job creation in the energy efficiency sector.
- Reduced environmental impact through lower energy consumption.
- Encourages the use of advanced building construction standards.
Potential Disadvantages
- Increased complexity in the administration of low-income housing credits.
- Potential for increased costs in rehabilitation projects due to stricter energy efficiency requirements.
- Reliance on the Secretary of Energy to define 'advanced building construction standard' which could be subject to political influence.
- The definition of 'qualified professional' is left to the Secretary of Energy, potentially creating barriers to entry.
- Possible delays in project completion due to the need for certifications and approvals.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble). Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill uses tax credits to incentivize behavior that promotes energy efficiency, which could be argued as promoting the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).