Biden admin highlights energy, housing tax credits during Madison visit
MADISON, Wis. (CBS 58) -- With many consumers still feeling the effects of high prices, the Biden administration visited Wisconsin Thursday to highlight some cost-saving initiatives.
U.S Department of Energy Secretary Jennifer Granholm toured a home in Madison that recently took advantage of the administration's clean energy tax credit.
It's part of President Joe Biden's "Investing in America" initiative, approved through legislation in 2021 and 2022, that encourages investments in renewable energy and manufacturing, among other things. Granholm's visit comes a day after she toured Milwaukee's Discovery World on Wednesday to also tout the measures.
"There's all sorts of ways the President has been focused on reducing costs for everyday people, and this is one of them," said Granholm.
For homeowner Cynthia Hirsch, she said she saved hundreds on her utility bill by installing new windows after learning about the clean energy tax credit.
"Every little bit helps," Hirsch said. "Besides saving money and getting a tax credit, we wanted to do the right thing."
It's one of many incentives at the forefront of the Biden administration's reelection campaign. The surge in home prices is another area.
Biden recently proposed a new tax credit that would provide $10,000 to first-time homebuyers. Current homeowners could also receive $10,000 for selling their "starter home" to move into a bigger house. The proposals would need approval from Congress.
Mark Sommerhauser, communications director at the Wisconsin Policy Forum, said while the tax credits could be an attractive perk, it wouldn't solve the housing shortage crisis.
"A big problem is there are just not enough housing units available," Sommerhauser said.
The latest report by the Wisconsin Policy Forum found despite rising incomes in Wisconsin, it's becoming increasingly difficult for the middle-class to buy a home.
The prices of homes also vary by location. Dane County topped the list of being the most expensive to buy, with the median home sale price of $365,000, according to the report. That's 4.6-times the area's median income.
Home sale prices in Milwaukee averaged $225,000 while Ozaukee and Waukesha are much higher, largely because residents have higher incomes in those areas, Sommerhauser said.
On the bright side, there was a slight uptick in the number of homes for sale over the last three months, according to data by the Wisconsin Realtors Association.
In February, inventory increased by 3.1% compared to 12 months earlier, and year-to-date sales are up 6% over the first two months of 2023.
"Which is great news because we haven't seen positive news in terms of inventory in some time," said Tom Larson, president & CEO, Wisconsin Realtors Association.
With demand high and inventory low, it's left many residents with no choice but to keep renting.
Since 2010, the number of homes in the state increased by more than 211,000, while fewer than 145,000 housing units were permitted. That's a shortage of nearly 67,000 homes that has also contributed to higher prices, according to the report.