Senator introduces new home credit for builders
On Jan. 29, 2026, U.S. Senator Catherine Cortez Masto (D-Nev.) introduced the Lowering Home Energy Costs Act. If signed into law, this bill aims to restore tax credits that were repealed inH.R. 1. The Lowering Home Energy Costs Act appeals to builders of energy efficient homes and aims to solidify rewards until 2032.
Outlined in the bill includes a “New Energy Efficient Home Credit” that applies to builders of energy efficient single-family and multifamily homes. For this credit home would need to be certified Energy Star or the Energy Efficient New Home program. The program also would extends credits to energy efficient improvements on existing homes. Additionally, the “Residential Clean Energy Credit” would subsidize 30% of improvements like rooftop solar and battery storage. These changes would restore the tax credits to builders and incentivise buyers to invest in sustainable residential building. As the past year showed, the importance and success of energy efficient homes is present regardless of these credits.
“Homeowners deserve the choice and opportunity to make their homes more energy efficient and lower their power bills for good,” said Senator Catherine Masto in her statement on the bill.
