Obama Administration weighs incentives for home improvement

Washington, D.C. The Obama administration is talking to big home-improvement retailers about using more federal dollars to encourage homeowners to embark on home-improvement projects as part of a broader effort to spur hiring, according to a report by the Wall Street Journal.

Administration and congressional aides said the talks are at an early stage, and are among a variety of ideas for boosting employment under consideration ahead of a "jobs summit" with business leaders that President Barack Obama is hosting Thursday. That meeting comes a day before the release of new employment data.

According to WSJ, sources said White House officials are discussing the use of expanded tax credits or cash rebates to consumers who agree to conduct energy audits of their homes and subsequently take specific steps to improve their energy efficiency.

One idea under discussion is raising the dollar value of a tax credit that home owners making energy-efficiency improvements can qualify for under an economic stimulus bill passed by Congress and signed into law in February, people involved with the discussions said. The legislation authorized a tax credit up to $1,500 for homeowners who add insulation, energy-efficient windows, or more efficient heating and air conditioning systems. It also included billions of dollars to speed the weatherization of the homes of low-income Americans.

Scott Mason, VP government affairs at Lowe's Cos., told WSJ that the retailer has been in talks with Obama administration officials and Senate staffers about various ways the government could reward consumers who make energy-efficiency improvements to their homes. Any new U.S. tax breaks or cash rebates would likely be contingent on homeowners agreeing to cut their energy use by set amounts, such as 10% or 20%, to qualify.

"If this can drive sales at Lowe's stores and put contractors and subcontractors back to work, that could have a very positive effect," Mason said. "We're talking to people on both sides of Pennsylvania Avenue about our perspective. We have seen home values decline around the country, and there are things that can be done with energy efficiency that can help drive home values up again."

Home Depot, in a statement, expressed support for "any program that provides incentives to consumers to make their homes more energy-efficient." Home Depot added that specifics of the proposal aren't final.

A report published in October by the White House estimated that existing techniques and technologies in energy-efficiency retrofitting can reduce home energy use by up to 40% per home and lower associated greenhouse gas emissions by up to 160 million metric tons annually by the year 2020, potentially reducing home energy bills in the United States by $21 billion annually.