Solid American Hardwood Tax Credit Act

This bill creates a new home tax credit for “natural carbon sinks” made from American-grown hardwoods. Homeowners could get a credit when they install certain wood products—like flooring, paneling, millwork, cabinet doors or facing, and frames for windows or skylights—if they’re made from deciduous trees grown and processed in the United States. The items must be installed in your main home, be new to you, and be expected to last at least five years . The credit would apply to qualifying items placed in service after the bill becomes law .

It also ends the extra tax credit for new carbon capture equipment if construction on that equipment begins after the bill becomes law .

• Who is affected: Homeowners improving their primary residence with qualifying American hardwood products; companies planning new carbon capture equipment .
• What changes: Adds a tax credit for eligible hardwood products used in the home; stops the increased credit for new carbon capture equipment started after enactment .
• When: Applies to qualifying home products placed in service after enactment; the carbon capture change applies to equipment whose construction begins after enactment .