Tax credits for residential energy efficiency came close to be enacted this year. On November 17, 2003, the Energy Conference Committee reached an agreement on the national energy legislation. On November 18 the House of Representatives passed the compromise the legislation. The legislation provides for tax credits for residential energy efficiency.

The legislation stalled in the Senate when the Republican leadership came 2 votes short of closure of the filibuster that was waged against the bill. Senate Majority Leader Bill Frist (R-TN) vowed to bring the measure to a vote when the Senate reconvenes on January 20, 2004.

According to the Los Angeles Times, it is unclear at this time whether the Administration can pick up the two Senate votes over the holidays. There is political pressure, however, on the Republicans to do something. The Times quoted former Congressmen and energy policy expert Phil Sharp, "I just think that there's too much (at stake) for the president's reputation, for the Republican Congress not to complete something. Law-makers are still under pressure to follow through on their promise to strengthen the electric grid after the Northeast blackout. They would face political trouble if another blackout hit and they had failed to act."

This would argue that an energy bill will pass when Congress comes back to session.

The residential energy efficiency provisions of the energy legislation provides:

• Maximum of $2,000 credit to the home owner for building shell improvements.
• The improvements must follow the prescriptive criteria from the International Energy Conservation Code (IECC).
• Requires third party verification. The bill recognizes verification by a building code official, a utility, a manufactured home production inspection agency, or a RESNET accredited rating provider.

• $1,000 credit for the builder for homes that exceeds the IECC by 30% and $2,000 for exceeding the IECC by 50%.
• The bill provides that manufactured homes will be based on the ENERGY STAR Homes program standards
• Verification would be defined by the Department of Treasury,