n February 26, Sen. Frank Murkowski (R-Alaska), chairman of the Energy and Natural Resources Committee, introduced S.389, a national Energy bill that includes up to $2,000 tax credit provisions for manufacturers of energy-efficient homes (or to the homeowner who retrofits). The credits will apply to homes that are certified to exceed the standards for energy efficiency by 30 percent. The standards will be based on energy use established for comparable dwellings under the 1998 International Energy Conservation Code.

MHI worked to include energy efficiency tax credit language that is favorable to the manufactured housing industry in all the current Senate and House proposals. At the end of March, Sen. Jeff Bingaman (D-N.M.) unveiled the Senate Democrats' energy package, which will provide $1,500 to $2,500 in tax credits to the manufacturer of new manufactured homes (or a maximum of $2,000 to the homeowner who retrofits) that are 30 to 50 percent more efficient than the minimum requirements of the 2000 International Energy Conservation Code.

Previously Rep. Randy Cunningham (R- Calif.) introduced H.R. 778, which parallels Sen. Bob Smith's (R-N.H.) bill, S. 207, that offer tax credits to the homeowner of $750 to $2000 for the construction of new manufactured homes that are 30-50 percent more efficient than the minimum requirements of the 2000 International Energy Conservation Code.

Language is included in the Murkowski and the Bingaman bills that specifically permit efficiency certification for manufactured homes to be performed by a production inspection primary inspection agency (IPIA). At press time, there was strong support for all versions of the tax credit language, so it is unclear as to which may ultimately move forward. If you'd like additional information about the tax credit language, contact MHI's Sherri Cabrera at 703-558-0659, or via e-mail sherri@mfghome.org.

SOFTWOODLUMBER

Since U.S. and Canadian trade officials did not reach agreement on the Softwood Lumber Agreement, it expired on March 31st. While the expiration is good for the manufactured housing industry, since Canadian lumber imports will be tariff-free, anti-dumping and countervailing-duty lawsuits have already been filed by U.S. lumber producers and lengthy legal proceedings will follow.

The agreement was signed in 1996 to restrict lumber shipments from Canada to the United States. However, the restriction of the supply of finished lumber for framing homes and remodeling has artificially raised the average cost of a new home by an estimated $1,000. Robert Zoellick, the new U.S. trade representative, has suggested imposing a special tax on Canadian lumber imports. Canada's trade minister rejected the suggestion, and recommended the "panel-of-experts" approach that helped settle a U.S.-Canada dispute over salmon fishing.

MHI will continue to work with the American Consumers for Affordable Homes (ACAH), an alliance of business and consumer interests supporting free trade in lumber, to ensure that new tariffs are not introduced.

Although the agreement has expired, it is very important that Members of Congress voice their oppposition to any tariff on Canadian lumber. If you have not done so already, please urge your Senators to cosponsor S. Con. Res. 4 and your Representatives to cosponsor H. Con. Res. 45. The House bill sponsored by Reps. Jim Kolbe (R-Ariz.) and Steny Hoyer (D-Md.) currently has 80 cosponsors, and the Senate bill sponsored by Sens. Don Nickles (R-Okla.) and Jeff Bingaman (D-N.M.) has 10 cosponsors. The bills call for an expiration of the agreement and that trade restrictions should not be renegotiated. For a list of the House and Senate co-sponsors go to the congressional Web site, thomas.loc.gov.

If you have questions about the resolutions or the agreement, contact MHI's Sherri Cabrera at 703-558-0659, or e-mail sherri@mfghome.org.

© 2002 by Manufactured Housing Institute. All rights reserved.