To amend the Internal Revenue Code of 1986 to reverse certain energy-related modifications enacted by Public Law 119-21.
Sponsored By: Representative Fitzpatrick, Brian K. [R-PA-1]
Introduced
Summary
Would reverse or delay certain energy-related tax incentives enacted by Public Law 119-21. It would end one major commercial energy deduction, push back deadlines for several clean energy credits, and change how electricity credits phase out.
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- Commercial building owners and designers would lose the Energy Efficient Commercial Buildings Deduction (Section 179D). This deduction is removed by the bill.
- Homebuilders and clean hydrogen developers would see deadline shifts. The New Energy Efficient Home Credit would be available through Dec 31, 2032 and the clean hydrogen facility construction deadline would move to Jan 1, 2033.
- Electricity producers and clean-energy investors would face a new phase-out trigger for the clean electricity production and investment credits. The credits would phase out only once U.S. electricity-sector greenhouse gas emissions fall to 25% of their 2022 level or in 2032, whichever is later.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Extended home energy tax credit
If enacted, the bill would extend the New Energy Efficient Home tax credit eligibility date from June 30, 2026 to December 31, 2032. Homebuilders and eligible taxpayers would be able to claim the Section 45L credit for homes completed through December 31, 2032. The change would take effect as if included in section 70508 of Public Law 119-21.
More clean energy tax credits for investors
If enacted, project owners and investors in clean electricity and hydrogen would get more time and fewer statutory limits to claim investment and production tax credits. The bill would remove a cross-reference limit from the clean electricity investment credit and the clean electricity production credit. It would also move the clean hydrogen facility construction cutoff to January 1, 2033. The clean electricity production credit would not phase out until the later of the year the Secretary finds U.S. electricity emissions are 25% of 2022 levels or 2032.
Commercial building energy deduction ends
If enacted, the bill would strike subsection (i) of the energy efficient commercial buildings deduction and end that version of the Section 179D deduction. Building owners, designers, and other taxpayers who used that subsection would no longer be able to rely on it to reduce taxes. The change would take effect as if included in section 70507 of Public Law 119-21.
Sponsors & CoSponsors
Sponsor
Fitzpatrick, Brian K. [R-PA-1]
PA • R
Cosponsors
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 4/23/2026
Rep. Miller, Max L. [R-OH-7]
OH • R
Sponsored 4/23/2026
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 4/23/2026
Bresnahan
PA • R
Sponsored 5/7/2026
Rep. Garbarino, Andrew R. [R-NY-2]
NY • R
Sponsored 5/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov