We’ve all heard the saying politics is personal. Whether you love the news or hate it, it’s important to follow what legislation is making its way through Capitol Hill and how it affects you and your bank.
What Should We Be Watching?
The Moving Forward Act is infrastructure legislation passed this month in the House of Representatives that is set to provide trillion dollars of federal funding across surface transportation, water, aviation, broadband, healthcare, and energy. This bill was designed to revitalize and decarbonize the United States’ infrastructure to net zero by the year 2050.
This bill has quickly worked its way through the House of Representatives and is expected to pass in the Senate as early as Christmas. You can expect to see the bill on the docket for discussion after the Senate returns from a Thanksgiving recess.
What’s in This Bill?
The Moving Forward Act includes the new energy-efficient home credit (45L) extending it through 2025 and increasing the maximum credit from $2,000 to $2,500. Additionally, it increases the energy-efficient commercial building deduction (179D) maximum from $1.80 to $3.00 per square foot.
How Does This Affect Me?
While this proposal includes much-needed incentives for builders and developers, the Moving Forward Act has been criticized for being too partisan. The act was manifested by House Democrats in 2020. While the Senate is deadlocked 50/50, many Republicans have spoken out about their disapproval for the bill.
Included in the Moving Forward act is the GREEN Act. The GREEN Act also includes another number of energy efficiency tax initiates that you could benefit from.
Two of these benefits include:
- The 179D energy-efficient commercial buildings deduction is a permanent program.
- The 45L new energy-efficient home credit is extended through 2025. The provision also expands the maximum credit from $2,000 to $2,500.
Despite the unlikelihood of the Moving Forward Act passing, the bill does provide insight into the priorities of the current administration. As the world is making efforts to promote and provide clean energy, these priorities have the potential to provide businesses and families with more incentives to take advantage of cleaner energy in their recent and upcoming projects.
National Tax Group is here to keep you in the know about the passage of the Moving Forward Act, what it means for you and your projects or business, and what you could gain. If you have any questions regarding the tax group services or how the Moving Forward Act will specifically impact you, please contact us.
To read more about the Act, visit the Moving Forward Fact Sheet.