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.
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.
Plain Language Summary
# HR 616 Summary **What the Bill Does** HR 616 would increase tax credits for homeowners who install certain energy-efficient heating and water heating systems. Specifically, it would double the tax credit limit from $2,000 to $4,000 for heat pumps, heat pump water heaters, biomass stoves, and biomass boilers. This means homeowners could get back up to $4,000 in tax credits (representing 30% of the installation cost) when they upgrade to these energy-efficient systems, making them more affordable. **Who It Affects** The bill primarily affects homeowners considering energy-efficient heating upgrades.
It would make these green home improvements more financially attractive by increasing the available tax incentive. The broader impact would support the clean energy and home construction industries that install these systems. **Current Status** HR 616 was introduced by Representative Josh Gottheimer (D-NJ) in the 119th Congress and is currently in committee, meaning it has not yet been debated or voted on by the full House of Representatives.
CRS Official Summary
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.)
Latest Action
Referred to the House Committee on Ways and Means.