Solid American Hardwood Tax Credit Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1964 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1964

    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.


_______________________________________________________________________


                   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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Solid American Hardwood Tax Credit 
Act''.

SEC. 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.

SEC. 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.
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