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.
HR 2133, the "Lakes Before Turbines Act," blocks tax credits for offshore wind energy projects in the Great Lakes by amending the federal tax code. It prohibits the Investment Tax Credit (ITC) for offshore wind facilities located in the Great Lakes after 2022, directly affecting developers planning such projects. The key provision inserts "other than any of the Great Lakes" into the tax code language that previously allowed credits for wind projects in U.S. inland waters. This policy change takes effect for taxable years beginning after December 31, 2022.
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.
This bill creates tax credits for small tax-exempt nonprofits (like charities, schools, and religious organizations) to help them start or maintain retirement plans for their employees. It provides two specific credits: one for covering initial setup costs of a pension plan and another for automatically enrolling employees in retirement savings. The credits reduce the employer’s payroll tax liability, capped at the amount of payroll tax paid during the year. The changes apply to taxable years beginning after December 2024.
HR 320, the "Make Marriage Great Again Act of 2025," eliminates the tax "marriage penalty" for married couples filing jointly. The bill modifies the federal income tax code by doubling the income thresholds for married couples' tax brackets (using the brackets that apply to single filers), effectively making the tax rates for married couples more favorable. This change directly affects married couples filing jointly whose combined income would have previously pushed them into a higher tax bracket than if they filed separately. The policy change applies to taxable years beginning after December 31, 2024, and removes specific provisions that previously created the penalty.
This bill disallows tax deductions for interest and depreciation on rental properties owned by individuals or entities holding 50 or more single-family homes (defined as properties with four or fewer units). It directly affects large-scale landlords, including corporations or investors who own extensive rental portfolios, by removing these deductions from taxable income. Exceptions apply if the property is sold to an individual for their primary residence or to a qualified nonprofit organization focused on affordable housing (like community land trusts or housing nonprofits). The law aims to limit tax benefits for investors who own many rental homes, while preserving deductions for sales that support housing affordability. It takes effect for taxable years after enactment.
S 2475, the American Worker Rebate Act of 2025, provides tax rebates to eligible U.S. workers using revenue from import tariffs. It offers rebates of at least $600 per person (or $1,200 for joint filers), plus $600 per qualifying child, based on either a fixed amount or a share of tariff revenue collected after January 20, 2025. The rebate phases out for higher earners ($75,000+ single filers, $112,500 head of household, $150,000 joint filers) and requires Social Security numbers for eligibility. Rebates are paid as advance refunds by 2026, with no interest on overpayments.
