To amend the Internal Revenue Code of 1986 to double the dollar limitation for the energy efficient home improvement credit with respect to heat pumps, heat pump water heaters, biomass stoves, and boilers.

1/23/2025, 9:20 AM

Summary of Bill HR 616

Bill 119 HR 616 aims to make changes to the Internal Revenue Code of 1986 in order to increase the dollar limitation for the energy efficient home improvement credit. Specifically, this bill seeks to double the current limitation for certain energy efficient home improvements, including heat pumps, heat pump water heaters, biomass stoves, and boilers.

The energy efficient home improvement credit is a tax credit that incentivizes homeowners to make energy efficient upgrades to their homes. By doubling the dollar limitation for these specific improvements, the bill aims to encourage more homeowners to invest in energy efficient technologies, which can help reduce energy consumption and lower utility bills.

Overall, Bill 119 HR 616 is focused on promoting energy efficiency in homes by providing additional financial incentives for certain energy efficient upgrades. If passed, this bill could potentially lead to increased adoption of energy efficient technologies, ultimately benefiting both homeowners and the environment.

Congressional Summary of HR 616

This bill increases the limit on the energy efficient home improvement tax credit to $4,000 (from $2,000) for the cost of an electric or natural gas heat pump, an electric or natural gas heat pump water heater, a biomass stove, or a biomass boiler.

Under current law, a taxpayer may claim a nonrefundable tax credit of 30% of the cost, up to $2,000, for an electric or natural gas heat pump, an electric or natural gas heat pump water heater, a biomass stove, or a biomass boiler for a principal residence. (Under current law, taxpayers may also claim a nonrefundable tax credit of 30% of the costs, up to $1,200, for certain other eligible energy-efficient property such that some taxpayers may qualify for a maximum tax credit of $3,200.)

Current Status of Bill HR 616

Bill HR 616 is currently in the status of Bill Introduced since January 22, 2025. Bill HR 616 was introduced during Congress 119 and was introduced to the House on January 22, 2025. Bill HR 616's most recent activity was Referred to the House Committee on Ways and Means. as of January 22, 2025

Bipartisan Support of Bill HR 616

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Policy Area and Potential Impact of Bill HR 616

Primary Policy Focus

Alternate Title(s) of Bill HR 616

To amend the Internal Revenue Code of 1986 to double the dollar limitation for the energy efficient home improvement credit with respect to heat pumps, heat pump water heaters, biomass stoves, and boilers.