Solid American Hardwood Tax Credit Act

The Solid American Hardwood Tax Credit Act would expand the current energy efficiency tax credit (the "energy efficient home improvement credit" under Section 25C) to include a new category for natural carbon sink expenditures. This means taxpayers could claim the 25C credit for certain domestically sourced hardwood products installed in their primary residence that are designed to store carbon over time. The bill also extends the period during which the 25C credit can be claimed to 2035 and makes a separate change to the carbon capture credit under Section 45Q by terminating the enhanced credit for new projects if construction begins after enactment. The amendments generally apply to property placed in service or construction begun after the date of enactment.