Bills Introduced to Extend Section 25C, Section 45L Credits

Wednesday, October 16, 2019 - 12:30pm

Two bipartisan, bicameral bills were introduced to extend two energy tax incentives that expired at the end of 2017. The Home Energy Savings Act (S. 2588 and H.R. 4506) would extend the Internal Revenue Code Section 25C tax credit for qualified energy efficiency improvements to Dec. 31, 2026. The bill would increase the maximum credit toward the cost of energy efficient upgrades from 10 percent to 15 percent and increase the credit cap from $500 to $1,200. The bill would also increase the lifetime cap for Section 25C claims from $500 to $1,200.

The New Home Energy Efficiency Act (S. 2595 and H.R. 4646) was introduced to extend and update the Section 45L tax credit for new energy efficient homes through 2022. The New Home Energy Efficiency Act would maintain the Section 45L credit at $2,000 for qualifying homes that exceed heating and cooling standards by 50 percent above the 2006 International Energy Conservation Code (IECC), plus supplements. The credit increases to $2,500 in 2021through 2022 for qualifying homes that exceed 2006 IECC standards by 60 percent or are 15 percent below 2018 IECC. Sens. Maggie Hassan, D-N.H., and Susan Collins, R-Maine, introduced the Senate versions of the bills and Reps. Jimmy Gomez, D-Calif., and Mike Kelly, R-Pa. introduced the House versions.

The Novogradac 2019 Financing Renewable Energy Tax Credits Fall Conference in Washington, D.C., Nov. 7-8, will feature discussions on renewable energy legislation and proposals.