Solid American Hardwood Tax Credit Act

This bill would let homeowners claim a tax credit when they install certain wood products in their main home. These products are treated as “natural carbon sinks,” like hardwood flooring, paneling, millwork, cabinet doors or faces, windows, and skylights, as long as they’re made from deciduous trees that were grown and processed in the United States. The items must be new to you, expected to last at least five years, and installed in your primary residence in the U.S.

Key points:

• Who is affected: Homeowners making upgrades to their main home.
• What changes: Adds a home improvement tax credit for qualifying “natural carbon sink” wood products made from U.S.-grown, U.S.-processed hardwoods.
• Requirements: Must be installed in your primary residence, be your first use, and be expected to remain in use for at least five years.
• When it starts: Applies to property placed in service after the law is enacted.

The bill updates the existing energy efficient home improvement credit to include these wood products as eligible “natural carbon sink” expenditures.