NAHB Rebukes Inflation Reduction Act
Washington, D.C., August 16, 2022 - The National Association of Homebuilders (NAHB) has released a statement opposing the passage of the Inflation Reduction Act of 2022, stating that “it fails to ease inflationary pressures on housing and contains troublesome new building and energy code requirements that could raise the cost of housing for homeowners and renters.”
The legislation contains $1 billion in grants for state and local governments that adopt more stringent energy code regulations, with a focus on zero-energy targets for residential and commercial buildings, NAHB reports.
“These zero-energy targets are not appropriate for most jurisdictions and not cost-effective for consumers,” the organization states. “The practical effect will be to raise housing costs even further while doing very little to provide meaningful savings for residential homes and apartments.”
The organization also takes issue with the provision of a $2,000 tax credit for builders on homes that meet specific energy savings above the baseline standards.
“Changing the rules to make Energy Star the sole means to qualify for the 45L tax credit is counterproductive because it is a niche market that will never be widely adopted -- less than 10% of single-family and multifamily units were certified in 2020,” the organization states.