S.1964 - Solid American Hardwood Tax Credit Act (119th Congress)
Summary
The Solid American Hardwood Tax Credit Act aims to modify the energy-efficient home improvement credit to include natural carbon sinks, specifically those made from American-grown and processed deciduous trees. It also extends the existing credit through 2035 and terminates an increased credit for carbon oxide sequestration for equipment construction starting after the enactment date. The bill intends to incentivize the use of domestically sourced hardwood in home improvements, promoting carbon sequestration and supporting the American timber industry.
Expected Effects
The act is likely to increase demand for American hardwood products used in home construction and renovation. It will also provide a tax incentive for homeowners choosing these materials. The termination of the increased credit for carbon oxide sequestration could impact certain carbon capture projects.
Potential Benefits
- Encourages the use of sustainable materials in home improvement.
- Supports the American hardwood industry and creates jobs in related sectors.
- Provides tax relief for homeowners making energy-efficient and environmentally conscious choices.
- Promotes carbon sequestration through the use of wood products.
- Extends the energy-efficient home improvement credit, making it available for a longer period.
Potential Disadvantages
- May increase the cost of certain home improvement projects if American hardwood is more expensive than alternatives.
- The termination of the carbon oxide sequestration credit could hinder the development of carbon capture technologies.
- Potential for unintended consequences related to deforestation if not managed sustainably.
- The focus on specific materials (American hardwood) may limit consumer choice and innovation.
- The complexity of tax credits can make it difficult for some homeowners to access the benefits.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble) by promoting economic activity and environmental stewardship. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill falls under this power as it modifies the tax code to incentivize certain behaviors.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).