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LBM Dealers Push forTax Credits for Customers

The Obama Administration has consulted with both Lowe's and Home Depot on a new government program that would encourage energy-efficient home improvements.

"If this can drive sales at Lowe's stores and put conffactors and subcontractors back to work, that could have a very positive effect," said Scott Mason, vice president of government affairs at Lowe's. "We have seen home values decline around the country, and there are things that can be done with energy efficiency that can help drive home values up again."

Home Depot expressed support for "any program that provides incentives to consumers to make their homes more energy-efficient."

The proposed program, named Homestar, would cost $23 billion over two years. Of that amount, $6 billion would be used as incentives to people who complete at least two significant weatherization projects from a proposed list of 10 such projects. Homeowners who complete at least two eligible projects would receive up to $2,000, while up to four eligible projects would net up to $3,500-but government money could not pay for more than half of any project.

Another $12 billion would reward homeowners who complete a weatherization project that reduces energy consumption by at least 2OVo, which would qualify for a $4,000 subsidy. Each additional 5Vo reduction would bring another $1,500, but government money could not pay for more than half of any project. Spot audits of completed improvements would be funded by another $2 billion.

The remaining $3 billion would pay for incentives to contractors and home-improvement retailers such as Home Depot and Lowe's.

U.S. Powers Tool Rebound

Global demand for power tools will climb 4Vo a year to surpass $28 billion by 2013, according to a recent Freedonia Group forecast.

Despite the recession, the bedrock U.S. market will provide the best opportunities, accounting for over one-third of the growth from 2008 to 2013. Recovery in U.S. demand will reflect a turnaround in housing and continued enthusiasm for d-i-y projects.

U.S. power tool sales will also benefit from the introduction of improved

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