Get construction on its feet, reduce energy costs for our families, and get foreclosures back on the market by enacting legislation that has bipartisan support.
During this recession, we have all heard stories or had friends who lost their homes to foreclosure. We’ve all seen the dramatic decline of the construction industry and overall home values.
Just last year, New Mexican foreclosures totaled 8,797 homes, including 950 during the December holiday season. The resulting decline in construction has left 6,000 people out of work. New Mexicans continue to watch helplessly as crime rises, home values drop in areas with empty homes, and our construction sector remains out of work.
In these times, the state of New Mexico can lend a hand.
Bipartisan support
One of the bills introduced by the house (HB 177 — sponsored by Brian F. Egolf), enjoys bipartisan support and provides a one-time, short-term refundable tax credit for purchasers of eligible energy-efficient homes.
This bill offers a short-term tax credit of $4,000, $6,000 or $8,000 to owners of foreclosed homes to remodel and make their homes 50, 75 or 100 percent more energy efficient. The bill also offers the same tax credit to individuals buying newly constructed energy-efficient homes.
The bill will give a needed boost to our local economy by providing desperately needed jobs for New Mexicans. If used to its full capacity, we expect the tax credit will create 4,500 construction jobs. It will also mean $282 million in construction spending, which will generate $43 million for new state and local government revenue.
Looking for smart ways to get our economy going
The N.M. Green Chamber of Commerce and the New Mexico Homebuilders Association, as well as the New Mexico Association of Counties, the Santa Fe and Central New Mexico homebuilders associations and the Albuquerque Chamber of Commerce have endorsed HB 177.
Late last week, both our organizations visited our legislators at the Roundhouse in Santa Fe to discuss this bill. Many times we underestimate how open our elected officials can be to constituent concerns. We found them open to our perspective and looking for smart ways to get our construction sector and the economy back on its feet.
We believe HB177 is a vital step to move our economy in the right direction.
Rael is president of the N.M. Green Chamber of Commerce. Folkman is executive vice president of the Homebuilders Association of Central New Mexico.