The SAFE HOME Act creates a refundable tax credit allowing homeowners to claim 25% of qualified wildfire mitigation costs, up to $25,000 annually. It directly affects primary homeowners in wildfire-prone areas - defined as locations with recent federal wildfire disaster declarations, FEMA hazard mitigation assistance, or designated "community disaster resilience zones." Qualifying expenses include fire-resistant roofing, ignition-resistant construction upgrades, vegetation clearing, and smoke prevention systems, but exclude government-funded projects. The credit phases out for taxpayers earning over $200,000 in adjusted gross income and expires after 2032.
This bill creates a tax credit for U.S. manufacturers producing rare earth magnets. It provides $20 per kilogram for magnets made in the U.S., increasing to $30 per kilogram if at least 90% of component rare earth materials (like neodymium or cobalt) are also sourced domestically. The credit phases out after 2034 (70% in 2035, 35% in 2036-37, and 0% after 2037) and restricts credits if materials come from "non-allied foreign nations" (with limited exceptions until 2027). The credit applies to taxable years beginning after December 31, 2024, and requires magnets to be produced in regular business operations.
The EITC Lookback Act (HR 2898) allows low-income workers with fluctuating income to use their previous tax year's earnings when calculating their Earned Income Tax Credit (EITC), instead of their current year's lower earnings. It directly affects qualifying taxpayers whose income drops from one year to the next, such as those facing temporary job loss or reduced hours. The key provision lets eligible individuals choose to substitute their prior year's earned income for the current year's in determining their EITC amount. This change applies to tax years beginning after December 31, 2024, providing potential tax relief for workers experiencing income volatility.
The PURE Water Act (HR 1441) creates a federal tax credit for individuals who install qualifying home water filtration systems. It allows a 20% credit on primary residence filtration costs and 10% on secondary residence costs, capped at $2,500 per tax year, with unused portions carryable forward. The credit applies only to systems that remove at least 90% of lead, PFAS, and PFOA from drinking water, excluding maintenance costs. This directly affects individual taxpayers who purchase qualifying filters for their U.S. homes, effective for tax years beginning after December 31, 2024.
This bill would permanently expand the Child Tax Credit to provide $4,200 per year for each child under age 6 and $3,000 per year for each child ages 6-17. It also creates a new $2,800 credit for pregnant mothers with unborn children at 20 weeks gestation or more, requiring physician certification of gestational age. Both credits phase out for higher-income taxpayers, with the Child Tax Credit phasing out at $400,000 for joint filers and $200,000 for other taxpayers. The bill would affect low and middle-income families with children, particularly those with young children or who are pregnant, with changes applying to taxable years beginning after December 31, 2025.
This bill increases the federal tax credit for rehabilitating historic buildings. It raises the standard credit rate from 20% to 30% for qualifying small projects (with a $3.75 million expenditure cap) and further increases the cap to $5 million for projects in rural areas. The bill also allows taxpayers to transfer all or part of this credit to another taxpayer, creating a new market for the credit. These changes apply to properties placed in service after the bill's enactment date. The bill directly affects developers and owners of historic properties seeking tax incentives for rehabilitation projects.
This bill creates a new tax credit for businesses capturing methane from mining operations. It directly affects mining companies that install methane capture equipment at facilities meeting specific requirements, including capturing at least 2,500 metric tons of CO2e methane annually. The credit replaces the existing carbon capture tax credit under Section 45Q, paying per metric ton of captured methane instead of carbon dioxide, and applies to methane captured after December 31, 2024. Key provisions require methane to be used for energy (like heating or power) or injected into compliant pipelines without significant release, with equipment construction starting before January 1, 2036.
The Fusion Advanced Manufacturing Parity Act creates a 25% tax credit on the sales price of specific fusion energy components, such as fusion chambers, high-temperature superconducting magnets, and cooling systems, sold after 2025. The credit phases out over time, reducing to 75% of the base credit in 2032, 50% in 2033, and 25% in 2034, with no credit after 2034. This policy directly affects manufacturers producing qualifying components for fusion energy machines designed to generate electricity or process heat. The credit aims to lower manufacturing costs for companies in the emerging fusion energy sector by providing financial incentives for these specialized components.
This bill creates a 40% tax credit for U.S. companies investing in new or upgraded facilities manufacturing critical supply chain goods, including pharmaceuticals, medical devices, semiconductors, and aerospace equipment. It specifically targets facilities located in the U.S., Puerto Rico, or U.S. possessions, with additional incentives for projects in economically distressed areas (poverty rate ≥30% in qualified opportunity zones). The credit excludes investments by foreign entities from "covered nations" or those with significant foreign government control. Companies must meet strict definitions of "qualified property" and facility purpose to qualify, with the credit applying to property placed in service after 2024.
The Accountability for Better Care Act of 2025 modifies key provisions of the Affordable Care Act's health insurance subsidies. It extends the premium tax credit period to 2027, increases the income threshold for higher-income households to 600% of the federal poverty level (from 400%), and ensures subsidies never exceed monthly premiums minus $5. The bill also requires U.S. citizenship for eligibility (replacing prior rules for non-citizens), and prohibits health plans covering abortions (except in cases of life endangerment, rape, or incest) from qualifying for subsidies. These changes apply to tax years beginning after December 31, 2025.
