Solid American Hardwood Tax Credit Act

Section 25C(a) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting, and, and by adding at the end the following new paragraph:

(4) the amount of the natural carbon sink expenditures paid or incurred by the taxpayer during such taxable year.

Section 25C of such Code is amended by redesignating subsections (f), (g), and (h) as subsections (g), (h), and (i), respectively, and by inserting after subsection (e) the following new subsection:

For purposes of this section—

The term natural carbon sink expenditures means expenditures made by the taxpayer for any natural carbon sink if—

(A) such natural carbon sink is installed on or in connection with a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121),

(B) the original use of such natural carbon sink commences with the taxpayer, and

(C) such natural carbon sink reasonably can be expected to remain in use for at least 5 years.

The term natural carbon sink means— which is comprised of deciduous trees grown and processed in the United States.

(A) any flooring, paneling, millwork, cabinetry doors, or cabinetry facing, or

(B) any frame for a window or skylight,

Section 25C(i)(2) of such Code, as redesignated by subsection (a)(2), is amended by striking 2032 and inserting 2035.

Section 1016(a)(33) of such Code is amended by striking section 25C(g) and inserting section 25C(h).

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

Section 45Q(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

Paragraph (1) shall not apply to any carbon capture equipment the construction of which begins after the date of the enactment of this paragraph (determined without regard to when construction of the qualified facility begins).

The amendment made by this section shall apply to property the construction of which begins after the date of the enactment of this Act.