Build Back Better Legislation Stalled in U.S. Senate
In November 2021, the U.S. House of Representatives passed the Build Back Better (BBB) Bill, sending it over to the Senate for deliberation. The $1.75 trillion social policy and climate change bill includes language that affects the hearth industry in various ways. Since then, BBB has stalled in the Senate. Prospects for passage are unclear at this time, but will surely be an administration priority between now and November’s midterm elections.
From the current language in BBB, HPBA supports language that would: Extend the tax credit for wood and pellet heaters as follows:
Increase the credit from 26% to 30% of purchase and installation costs (would have started on January 1, 2022).
Extend the credit from December 31, 2023 through December 31, 2031.
Move the tax credit from Section 25(D) to Section 25(C) of the tax code.
Not impose a lifetime limit or cap on the amount that a qualifying taxpayer could claim under a 30% credit.
Maintain the minimum efficiency requirement of at least 75% per the higher heating value (HHV) of the fuel.
Authorizes $15 million for EPA to do testing and research on wood heater emissions to develop a Federal Reference Method for cordwood testing under the New Source Performance Standards. We do not support language that would impose a methane fee, which would increase natural gas bills by 18-34 percent according to the American Gas Association (AGA). HPBA signed onto a letter led by the AGA opposing the methane fee proposal. HPBA will continue to update members on the status and content of BBB throughout this session of Congress.