H.R. 3322: Solid American Hardwood Tax Credit Act

This bill, known as the Solid American Hardwood Tax Credit Act, proposes changes to the U.S. tax code to encourage the use of certain natural materials in home improvements. The main provisions of the bill are as follows:

Modification of Energy Efficient Home Improvement Credit

The bill seeks to amend the existing energy efficient home improvement tax credit to include a new type of expenditure known as "natural carbon sink expenditures." This is intended to promote the use of natural materials that can help in the reduction of carbon dioxide in the atmosphere.

Natural Carbon Sink Expenditures Defined

• Definition: Natural carbon sink expenditures refer to costs associated with installing specific materials in a home that can act as carbon sinks. These materials include flooring, paneling, millwork, cabinetry doors, cabinetry facing, windows, and skylights made from deciduous trees that are grown and processed in the United States.
• Requirements: To qualify as a natural carbon sink expenditure:
  • The material must be installed in a dwelling that is owned and used as the taxpayer's principal residence.
  • The original use of the material must start with the taxpayer.
  • The material must be expected to remain in use for at least five years.

Extension of the Credit

The bill proposes to extend the time period for these credits. Currently, the eligibility for the energy efficient home improvement credit ends in 2032; the bill would extend this deadline to 2035, allowing homeowners a longer timeframe to take advantage of these credits.

Effective Date

The changes proposed in the bill would apply to any eligible property placed in service after the enactment of this Act, meaning homeowners would need to wait until after the law is passed to claim these new benefits.

Relevant Companies

None found