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Industry: Stimulus could hurt Pilkington, other glass makers
Mar 28, 2009 | 2784 views | 3 3 comments | 10 10 recommendations | email to a friend | print
Stimulus legislation passed by Congress included criteria that would exclude many glass products from being eligible for a special tax credit.
Stimulus legislation passed by Congress included criteria that would exclude many glass products from being eligible for a special tax credit.
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A few words included in one paragraph of the federal government’s massive stimulus package could spell lost business for glass makers, including Scotland County's Pilkington.

The stimulus legislation gives homeowners making energy-efficient improvements a tax credit of 30 percent of the cost of the project, up to a total of $1,500.

But, the stimulus legislation passed by Congress included criteria that would exclude many glass products from being eligible for the tax credit.

According to the final version of the legislation, to qualify for the tax credit, windows, doors and skylights placed in service after Feb. 17, 2009, must have a U-factor and Solar Heat Gain Coefficient (SHGC) of less than or equal to 0.30. Not all Energy Star labeled windows and skylights qualify for the tax credit.

The U factor and SHGC represent ranges that homeowners can use to determine the best type of windows to install in their homes, based on the climate in which they live.

The criteria regarding windows and doors was not included in the House version, while the Senate version didn’t include the language until “the last minute.”

U.S. Rep. Phil Roe plans to introduce a bill that would strike a paragraph from the tax credit section of the stimulus plan.

Roe said he knows the language was inserted in the legislation by the Senate, “but we are still not sure why.”

“This legislation was supposed to spur the economy and create jobs. It’s ironic that by placing a provision in there that arbitrarily rewards some companies and punishes others — this bill has the potential to do just the opposite of what the proponents of the economic stimulus claimed it would do,” Roe said.

Officials with Pilkington could not be reached for comment.

But Chris Correnti, vice president with AGC Flat Glass, supports the amendment. His company is based in Tennessee.

“When this criteria was published in the bill, it gave us and others in the industry a lot of concern. The type of products that we were planning to make at Greenland would not qualify for the tax credit,” Correnti said.

“This is a very serious concern — it puts into question, what are we going to do now and what’s that going to mean for the future of selling those products in the U.S.?”

Comments
(3)
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stanley449
|
April 13, 2009
This is troubling for sure, but mainly because the article fails to mention the coated window glass products manufactured by the Pilkington NC and AGC TN factories utilizes 25yr old technology. The products are significantly less effective in energy control than what is commonly used in the industry today. Why should tax payer funds be used to support companies that choose not to invest in upgraded equipment? The trend away from these “old” glass coatings has been evident for 10yrs but the companies mentioned decided not to spend their money on better technology – but we should spend our money to help them sell their old products? Does this make sense to you?
HenryIII
|
April 07, 2009
No company is hurt by the stimulus requirement about which some are protesting. The legislation attempts to reward use of the most energy efficient windows. Although some products produced by PA companies do not qualify, some do. The stimulus package should help to sell the higher value-added products that do qualify. Why must the society subsidize the sale of every product offered by every manufacturer? The complaining companies need to quit whining and take advantage of the opportunity they have been given.
Cre8tivemaw
|
March 28, 2009
Write your US representatives about this matter. Scotland County can not afford to loose more business.

Congressman Larry Kissell

We can be reached at (202) 225-3715

512 Cannon HOB

Washington, DC 20515

http://kissell.house.gov/contact/index.shtml#dc_address

Senator Kay Hagan

WASHINGTON, DC OFFICE

B40A Dirksen Senate Office

Building

Washington, DC 20510

P: 202-224-6342

RALEIGH OFFICE

310 New Bern Avenue

Raleigh, NC 27601

P: 919-856-4630

TOLL FREE FOR NORTH CALONIANS P: 1-877-852-9462

http://hagan.senate.gov/contact/contact.cfm

Senator Richard Burr

Washington, DC

217 Russell Senate Office Building

Washington, DC 20510

Phone: (202) 224-3154

Fax: (202) 228-2981

http://burr.senate.gov/public/

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