S. 1964

119 S1964 IS: Solid American Hardwood Tax Credit Act
 U.S. Senate
 2025-06-05
 text/xml
 EN
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  II
  119th CONGRESS
  1st Session
  S. 1964
  IN THE SENATE OF THE UNITED STATES
  June 5, 2025
  Mrs. Hyde-Smith  introduced the following
  bill; which was read twice and referred to the  Committee on Finance
  A BILL
To amend the Internal Revenue Code of 1986 to modify the energy efficient
  home improvement credit to include a credit for natural carbon sinks, and for other
  purposes.
1.
Short title
This Act may be cited as the   Solid American Hardwood Tax Credit Act  .
2.
Modification of energy efficient home improvement credit
(a)
Inclusion of credit for natural carbon sink expenditures
(1)
In general
 Section 25C(a)  of the Internal Revenue Code of 1986 is amended by striking  and  at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting  , and , and by adding at the end the following new paragraph:
(4)
the amount of the natural carbon sink expenditures paid or incurred by the taxpayer during such taxable year.
  .
(2)
Natural carbon sink expenditures
Section 25C of such Code is amended by redesignating subsections (f), (g), and (h) as subsections (g), (h), and (i), respectively, and by inserting after subsection (e) the following new subsection:
(f)
Natural carbon sink expenditures
For purposes of this section—
(1)
In general
The term  natural carbon sink expenditures  means expenditures made by the taxpayer for any natural carbon sink if—
(A)
such natural carbon sink is installed on or in connection with a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121),
(B)
the original use of such natural carbon sink commences with the taxpayer, and
(C)
such natural carbon sink reasonably can be expected to remain in use for at least 5 years.
(2)
Natural carbon sink
The term  natural carbon sink  means—
(A)
any flooring, paneling, millwork, cabinetry doors, or cabinetry facing, or
(B)
any frame for a window or skylight,
  which is
  comprised of deciduous trees grown and processed in the United
  States.
  .
(b)
Extension of credit
Section 25C(i)(2) of such Code, as redesignated by subsection (a)(2), is amended by striking  2032  and inserting  2035 .
(c)
Conforming amendment
Section 1016(a)(33) of such Code is amended by striking  section 25C(g)  and inserting  section 25C(h) .
(d)
Effective date
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
3.
Termination of increased credit for carbon oxide sequestration
(a)
In general
 Section 45Q(h)  of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(6)
Termination
Paragraph (1) shall not apply to any carbon capture equipment the construction of which begins after the date of the enactment of this paragraph (determined without regard to when construction of the qualified facility begins).
  .
(b)
Effective date
The amendment made by this section shall apply to property the construction of which begins after the date of the enactment of this Act.