Job creation and increased supply and demand in the manufacturing community is a centerpiece of bipartisan legislation introduced today by Sens. Michael Bennet (D-CO) and Johnny Isakson (R-GA). With support from manufacturers and other business leaders, they introduced the Sensible Accounting to Value Energy (SAVE) Act, which would improve the ability of federal mortgage loan agencies to determine the energy costs a homeowner can expect to pay over the life of a mortgage and would increase taxpayer qualification of federal mortgage loans for energy-efficient homes.
The benefits to this bill are clear – it will offer homeowners reasonable financing options to make their homes more energy efficient. As a result, manufacturers and their employees across the U.S. stand to see a significant increase in demand for energy-efficient products, ranging from insulation to HVAC units and more.
According to recent studies, homeowners spend approximately $2,200 on energy costs per year – a number that remains high due to barriers in mortgage financing of energy-efficient improvements. If federal mortgage loan agencies are allowed to account for these expenses at the outset of a home purchase, homeowners could properly plan for upgrades that will save them money in the long run while creating immediate manufacturing demand.
In today’s struggling economy, the SAVE Act is expected to create approximately 83,000 jobs in a variety of industries across the country. This is a win-win solution for the economy, the environment, job seekers and manufacturers.
Monica McGuire is senior policy director for taxation, National Association of Manufacturers.
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