Solid American Hardwood Tax Credit Act

The Solid American Hardwood Tax Credit Act would change the existing energy efficient home improvement credit (Section 25C of the Internal Revenue Code) by adding a new category: a credit for natural carbon sink expenditures. This means taxpayers could claim a credit not only for certain energy-related home improvements, but also for installing or incorporating US-grown hardwood products (like flooring, paneling, millwork, cabinetry doors/facing, windows, and skylights) that are intended to store carbon in a principal residence. The new credit would apply to property placed in service after the enactment date and would extend the overall 25C credit window to 2035. To qualify, the natural carbon sink products must be installed in a dwelling in the United States, be of original use to the taxpayer, and be expected to remain in use for at least five years.