The Chairman of the tax writing House Ways and Means Committee Congressman Jason Smith (R-MO) has introduced comprehensive tax legislation, “THE ONE, BIG, BEAUTIFUL BILL” that would eliminate the 45L federal tax credit on December 31, 2025. Section 112007 of the proposed legislation would eliminate the 45L credit on December 31, 2025. The section of the proposed legislation on 45L states: SEC. 112007. TERMINATION OF NEW ENERGY EFFICIENT HOME CREDIT. (a) IN GENERAL. — Section 45L(h) is amended to read as follows: ‘‘(h) TERMINATION. — This section shall not apply to any qualified new energy efficient home acquired after December 31, 2025 (December 31, 2026, in the case of any home for which construction began before May 12, 2025).’’. (b) EFFECTIVE DATE. — The amendment made by this section shall apply to homes acquired after December 31, 2025. The Committee chairman is also proposing doing away with the 25C existing homes tax credit for homeowner energy improvements. The House Ways and Means Committee is scheduled to vote on the bill this week and the word in Washington is that the elimination of the 45L credit will be passed by the Committee. The legislation still must pass the House. The Washington Post reported where it faces stiff opposition from blue-state Republicans. The Los Angeles Times reports that House Speaker Mike Johnson (R-LA) has set the deadline for the House passing the legislation by Memorial Day, This means in practical terms that the battle to preserve the tax credit for energy efficient homes moves to the Senate. The Washington Post has also reported that in the Senate, “tax writers are eying their own policy changes.” Now would be a good time for the members of the RESNET community to reach out to their U.S. Senators to educate them on the importance of the tax credit to their states. For background information on reaching out to the Senate go to https://www.resnet.us/about/help-defend-the-federal-45l-energy-efficient-homes-tax-credit/ RESNET Board of Directors member Ryan Riveras of Accelerated AMC has drafted a template for a letter to make it easier for interested members of the RESNET network to be more active in sending a letter to their U.S. Senators. You can download the letter here. [Your Name] [Your Title / Position] [Company Name, if applicable] [Address] [City, State ZIP] [Email Address] [Phone Number] [Date] The Honorable [Senator’s First and Last Name] United States Senate Washington, D.C. 20510 Dear Senator [Last Name], I am writing to respectfully urge your continued support for the Section 45L New Energy Efficient Home Tax Credit and to advocate for its long-term extension and protection. As someone deeply involved in [real estate development/appraisal/green building/home construction – adjust based on your role], I have seen firsthand the positive economic and environmental impact this credit has delivered. The 45L tax credit provides vital incentives to builders and developers who invest in energy-efficient construction. It encourages innovation, supports domestic job creation, and ultimately reduces energy costs for American families. More importantly, it aligns with our nation’s long-term goals of energy independence. Since its inception, the 45L credit has helped make high-performance homes more financially viable, benefiting both the environment and working-class homeowners. With rising construction costs, inflation pressures, and increasing demand for affordable housing, removing or weakening this credit would not only slow progress but also penalize those working to address the costs of housing overall. Moreover, the 45L credit is not just an environmental policy — it is a smart economic driver. It helps small businesses remain competitive, spurs innovation in building materials and construction techniques, and supports skilled labor across the country. It also provides a measurable return on investment for taxpayers through energy savings for the homeowner. Now more than ever, we need to encourage the growth of green building and support policies that empower the private sector to lead the way. I strongly urge you to champion the continued inclusion and enhancement of the 45L credit in any relevant legislation and to consider making it a permanent part of the U.S. tax code. Thank you for your time and your leadership on this critical issue. I would be happy to provide additional insights or data on how 45L has impacted my industry directly. Respectfully,
