On July 4, 2025, President Donald Trump signed into law the massive tax and spending legislation, the “One Big and Beautiful Bill”. Among its provisions, the law eliminates the federal 45L tax credit for energy-efficient homes on June 30. 2026. Previously, the tax credit was set to expire in 2032. The legislation was passed by Congress by the slimmest of numbers, with only Republicans voting for it. It passed the House by one vote, and the tie in the Senate was broken by Vice President Vance. RESNET® worked hard in cooperation with its trade allies to preserve the 45L tax credit. In April 2025, RESNET sent a letter signed by almost 800 members of the HERS® industry, builders, and associated businesses to members of the tax-writing House and Senate committees urging the preservation of the credit. This was followed by meetings between rating companies, RESNET staff, and the Leading Builders of America, and staff of the key members of the tax-writing Senate Finance Committee, during which we explained the importance of the credit and the market penetration of HERS Index Ratings in their states. While Congress’ action is a setback in the movement to higher energy performance homes, it should not be seen as a major setback for the HERS industry. While builders may not be reaching the targets of the 45L tax credit, builders will continue to build energy-efficient homes and use the HERS Index to educate consumers and investors about their home’s energy performance. RESNET and the HERS industry from the beginning have relied upon the marketplace and not the vicissitudes of the federal government. The historical adoption of the HERS Index demonstrates that the marketplace, with the proper signals, can work. We will now redouble our efforts to mainstream the HERS Index in the housing market.