Bill Details
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This bill would increase the tax credit limit for certain energy-saving home improvements. Right now, people can claim up to $2,000 for installing qualifying heat pumps, heat pump water heaters, biomass stoves, and boilers. The bill would double that limit to $4,000, making the credit more valuable for homeowners who choose these types of equipment. The change would begin for tax years starting after December 31, 2024.
- The bill changes the current cap on this home energy tax credit from $2,000 to $4,000 for the listed equipment.
- The covered items are heat pumps, heat pump water heaters, biomass stoves, and boilers.
- The purpose is to make it cheaper for homeowners to upgrade to more energy-efficient heating and water-heating systems.
- The new rule would apply starting with tax years after December 31, 2024.
Official Summaries
This bill increases the limit on the energy efficient home improvement tax credit to $4,000 (from $2,000) for the cost of an electric or natural gas heat pump, an electric or natural gas heat pump water heater, a biomass stove, or a biomass boiler.
Under current law, a taxpayer may claim a nonrefundable tax credit of 30% of the cost, up to $2,000, for an electric or natural gas heat pump, an electric or natural gas heat pump water heater, a biomass stove, or a biomass boiler for a principal residence. (Under current law, taxpayers may also claim a nonrefundable tax credit of 30% of the costs, up to $1,200, for certain other eligible energy-efficient property such that some taxpayers may qualify for a maximum tax credit of $3,200.)
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 616 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 616
To amend the Internal Revenue Code of 1986 to double the dollar
limitation for the energy efficient home improvement credit with
respect to heat pumps, heat pump water heaters, biomass stoves, and
boilers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 22, 2025
Mr. Gottheimer introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to double the dollar
limitation for the energy efficient home improvement credit with
respect to heat pumps, heat pump water heaters, biomass stoves, and
boilers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. INCREASED LIMITATION FOR HEAT PUMP AND HEAT PUMP WATER
HEATERS; BIOMASS STOVES AND BOILERS.
(a) In General.--Section 25C(b)(5) of the Internal Revenue Code of
1986 is amended by striking ``$2,000'' and inserting ``$4,000''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
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