Overview
Title
To amend the Internal Revenue Code of 1986 to extend the energy credit with respect to electrochromic glass.
ELI5 AI
S. 4730 is a bill that wants to give more time for special glass called electrochromic glass, which can change how much light it lets in to help keep buildings warm or cool, to get a tax break. For this plan to work, people need to start building with this glass before 2033.
Summary AI
S. 4730, titled the “Dynamic Glass 2.0 Act,” seeks to amend the Internal Revenue Code of 1986. The bill proposes to extend the energy credit for electrochromic glass, which uses electricity to adjust its light transmission to help heat or cool a building. The amendment sets the condition that the construction of such electrochromic glass property must begin before January 1, 2033, to qualify for the credit. The changes would apply to any such property put into service after the enactment of the Act.
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AnalysisAI
Summary of the Bill
The proposed legislation, known as the "Dynamic Glass 2.0 Act," seeks to amend the Internal Revenue Code of 1986. This amendment aims to extend a tax credit specifically for the use of electrochromic glass. Electrochromic glass is a type of innovative material that can change how much light it lets through by using electricity. This capability helps in heating or cooling buildings more efficiently. The bill proposes an extension of the energy credit for such glass to cover constructions starting before January 1, 2033. These adjustments would apply to properties placed in service after the law is enacted.
Summary of Significant Issues
One of the key issues with the bill is the specific requirement concerning the term "electrochromic glass." This term might need more detailed guidelines to ensure that everyone interprets and applies the energy credit consistently. Another concern is the stipulated deadline of January 1, 2033, which might benefit projects that are currently in the planning stages over those that are planned for the future, potentially disadvantaging some developers. Additionally, the bill does not specify the fiscal impacts or costs associated with these amendments, which could be crucial for evaluating the broader budgetary implications. Lastly, the complex language and numerous references to sections of the Internal Revenue Code could make it difficult for stakeholders to fully understand and apply the legislation.
Impact on the Public
For the general public, the bill's impact might primarily be seen in the potential increase in energy efficiency in buildings that incorporate electrochromic glass. By enabling buildings to better manage heating and cooling, there might be environmental benefits, such as reduced energy consumption and related cost savings. However, without clear guidelines and fiscal transparency, the public might not fully grasp the cost implications or ensure that benefits are equitably distributed.
Impact on Specific Stakeholders
Developers and manufacturers of electrochromic glass stand to benefit significantly from this legislation. The extension of the energy credit could incentivize more widespread use of this technology, potentially leading to increased sales and development in the electrochromic glass sector. However, stakeholders planning projects for after 2032 might find themselves at a disadvantage compared to those with projects starting sooner, given the current deadline structure. Moreover, tax professionals and companies interacting with these credits will need to navigate the complexities of the amendments, which could require additional guidance or resources. Simplified language and clearer guidelines would be beneficial to ensure these stakeholders can access and leverage the potential benefits of the bill effectively.
Issues
The bill outlines specific conditions for 'electrochromic glass which uses electricity to change its light transmittance properties in order to heat or cool a structure' in Section 2, but these specifications might need clearer guidelines to ensure consistent interpretation and implementation, impacting how effectively the credit can be applied.
Section 2 sets a deadline of January 1, 2033, for the construction of electrochromic glass properties to begin in order to qualify for the energy credit. This could unfairly benefit projects currently in planning stages over those planned for later, potentially affecting fair competition.
The bill does not outline the potential cost or fiscal impact of the amendments to the Internal Revenue Code in Section 2. Understanding these budgetary concerns is crucial for assessing the broader financial impact of the bill.
The amendments proposed in Section 2 involve complex language with multiple clauses and references to specific sections of the Internal Revenue Code. Simplifying this language could improve understanding and accessibility for stakeholders and policymakers.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the act gives the act its official title, which is the "Dynamic Glass 2.0 Act".
2. Extension of energy credit for electrochromic glass Read Opens in new tab
Summary AI
The section extends the energy credit for electrochromic glass, which changes light transmittance using electricity to help heat or cool a structure, by including it under a new clause valid until the end of 2032. Additionally, it updates references in the Internal Revenue Code to reflect this change, with these amendments applying to properties placed in service after the law is enacted.