The House of Representatives have advanced the Moving Forward Act, a $1.5 Trillion infrastructure proposal. The purpose of the plan is to focus more closely on ways to reduce emissions, develop public land, improve communities and transit systems, among other key features.
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 extends the energy efficient commercial building deduction (179D) through 2025, while increasing the maximum deduction up to $5 per square foot.
While this proposal includes much needed incentives for builders and developers, it’s unlikely to pass the Senate given that it is considered by many to be too partisan. U.S. Senate Majority Leader Mitch McConnell commented that this bill “is not going anywhere in the Senate.” In addition, the White House indicated that the bill could be vetoed if presented as-is.
Despite the unlikelihood of passing, the bill does provide insight as to how Congress might extend and expand energy efficient tax incentives in the future.
Source: https://www.natlawreview.com/article/energy-sustainability-washington-updates-july-2020