To amend the Internal Revenue Code of 1986 to reverse certain energy-related modifications enacted by Public Law 119-21.

Bill Number

H.R. 8477

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-04-23: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-09T08:05:41Z

AI-Generated Summary

Purpose

H.R. 8477 aims to reverse specific energy-related changes made by Public Law 119-21 to the Internal Revenue Code of 1986 (the U.S. tax law). These changes primarily restore or extend tax incentives (financial benefits that reduce taxes) for clean energy projects, such as energy-efficient buildings and electricity production.

Key Provisions

The bill amends several tax code sections, with changes effective as if included in Public Law 119-21:

• Energy Efficient Commercial Buildings Deduction (Section 179D): Terminates a prior modification by striking subsection (i), likely restoring the full deduction for energy-saving building improvements.
• New Energy Efficient Home Credit (Section 45L): Extends the credit's end date from June 30, 2026, to December 31, 2032, for builders of energy-efficient homes.
• Clean Hydrogen Production Credit (Section 45V): Pushes back the facility construction deadline from January 1, 2028, to January 1, 2033, allowing more time for qualifying hydrogen projects.
• Clean Electricity Production Credit (Section 45Y):
• Removes fixed termination rules.
• Alters the phase-out (gradual reduction) to begin in the later of 2032 or the year U.S. electricity production greenhouse gas emissions (planet-warming gases) drop to 25% or less of 2022 levels.
• Clean Electricity Investment Credit (Section 48E): Eliminates fixed termination rules, preserving the credit for investments in clean electricity facilities.

Significant Changes to Existing Law

• Reverses restrictions imposed by Public Law 119-21, which appear to have shortened timelines, added terminations, or accelerated phase-outs for these clean energy tax benefits.
• Extends availability of credits and deductions, potentially making them permanent or longer-term unless tied to emissions goals.
• Ties one phase-out to environmental benchmarks (emissions reductions), introducing a performance-based element.

Potential Impacts

• Government Agencies: The IRS (Internal Revenue Service, the tax collection agency) may see increased claims processing and revenue loss from extended tax breaks, potentially reducing federal tax revenue by billions over time.
• Citizens and Businesses: Encourages more investment in energy-efficient homes, commercial buildings, clean hydrogen, and low-emission electricity by preserving tax savings; homeowners, builders, and energy firms could benefit from lower effective costs.
• International Relations: Minimal direct impact, though extended U.S. clean energy incentives could influence global competition in green technology markets.

Main Stakeholders Affected

• Energy and Construction Industries: Builders, manufacturers, and developers of energy-efficient homes/buildings and clean energy tech (e.g., hydrogen, renewables).
• Taxpayers and Businesses: Those claiming these deductions/credits, including large utilities and small builders.
• Federal Government: Treasury Department and IRS for administering claims; Congress for fiscal implications.
• Environmental Groups: Potentially mixed views, as extensions support clean energy but tie phase-outs to emissions targets.

Notable Legal, Constitutional, or Political Implications

• Legal: Amendments are retroactively effective to Public Law 119-21, ensuring seamless integration without disrupting prior claims; relies on IRS Secretary's determination for emissions-based phase-out, which could invite administrative challenges.
• Constitutional: No apparent issues; standard congressional authority over tax policy.
• Political: Introduced by Republicans (Fitzpatrick, Lawler, Miller, Carey), signals pushback against prior energy policy curbs; could spark debate on tax expenditures (government spending via tax breaks) versus climate goals, especially with emissions trigger. Referred to House Ways and Means Committee for tax legislation review.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Fitzpatrick, Brian K. [R-PA-1]

Cosponsors (6)

Rep. Lawler, Michael [R-NY-17], Rep. Miller, Max L. [R-OH-7], Rep. Carey, Mike [R-OH-15], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Kiggans, Jennifer A. [R-VA-2]

Recent Actions

• 2026-04-23: Referred to the House Committee on Ways and Means.
• 2026-04-23: Introduced in House
• 2026-04-23: Introduced in House

Bill Versions

• To amend the Internal Revenue Code of 1986 to reverse certain energy-related modifications enacted by Public Law 119–21. — issued 2026-04-23 — PDF (4 pages)