10/08/2008

NEWS RELEASE

(SHELBYVILLE, Ind., October 8, 2008) — Today Knauf Insulation applauds the American Council of Renewable Energy (ACORE), the Alliance to Save Energy (ASE), and members of the Clean Energy Caucus (CEC), for their actions which led to the U.S. House of Representatives and President Bush to pass into law HR 1424, The Emergency Economic Stabilization act of 2008.  The legislation includes an extension of the new home tax credits and the existing home tax credit through 2009.  The plan, which was signed into law by President Bush on October 3, 2008, provides Americans the opportunity to alleviate some of the burden they feel from rising energy costs by allowing them to take advantage of the tax credit opportunities that are contained in the plan. 

“The passage of this bill is a critical step toward helping American’s overcome rising energy costs,” says Knauf Insulation Public Affairs and Sustainability Director, Scott Miller.  “Any incentive for energy efficiency is good for consumers, and it helps preserve our planet’s energy resources.  Perhaps most important to helping the consumer is that reduced energy bills helps household cash flow.”

According to the Alliance to Save Energy, the legislation allows American consumers to take advantage of six key provisions:

• Continued opportunity to use a credit for energy-efficient improvements to existing homes through 2009.
• Continued opportunity to take a deduction for energy-efficient improvements to commercial buildings through 2013.
• Continued opportunity for homeowners to use the manufacturer's EE appliance tax credits through 2010 for appliances that are U.S. produced.
• Continuation of the credit for energy-efficient improvements in new homes through 2009 that achieve a 30% or 50% reduction in heating and cooling energy consumption relative to a comparable dwelling. The credit equals $1,000 for homes meeting a 30% efficiency standard, $2,000 for homes meeting a 50% standard.
• Allows smart electric meters and smart grid systems to be recovered over 10 years (instead of 20-year recovery period applicable under MACRS), but does not apply to property that already qualifies under a shorter recovery schedule;
• Creates a new credit for qualified plug-in electric drive vehicles. The credit for passenger vehicles and light truck ranges from $2500-$7500. Taxpayers may claim the credit up to the end of the first quarter after the quarter in which the total number of qualified plug-in electric drive vehicles sold in the United States exceeds 250,000, with all manufacturers combined.

The passage of this legislation is a formidable victory that lays the foundation for ACORE and ASE to continue their work in January 2009, when the 102^nd congress convenes.

Miller agrees there is more work to be done. “I worry that mortgage defaults could increase as energy costs increase. If a homeowner must choose between paying the energy bill to keep the family warm and paying the mortgage, then the mortgage is going to suffer. Energy efficiency is now a social issue as much as it’s a national security issue. This social burden could be addressed with a national mandate to improve the energy efficiency of homes.” 

Knauf Insulation is a leading U.S. manufacturer of thermal and acoustical fiber glass insulations for residential, commercial, industrial, OEM and metal building applications. For more information about Knauf Insulation sales and products, visit http://www.knaufinsulation.us/, write to Knauf Insulation, One Knauf Drive, Shelbyville, IN 46176 or call 800-825-4434 ext. 8212.