The American Energy Dominance Act was introduced into Congress on April 23, 2026. This bill aims to restore key energy efficiency tax incentives that were reversed by “the One Big Beautiful Bill” passed in 2025.
The legislation was introduced by Pennsylvania Republican Congressman Brian Fitzpatrick on April 23, 2026, in partnership with the North America’s Buildings Trades Unions (NABTU) with the support of Congressmen Mike Lawler (R-NY), Max Miller (R-OH), and Mike Cary (R-OH).
Energy tax credits are not just a piece of environmental policy; they are directly tied to construction jobs and activity. The overall goal of these incentives is to lower costs, drive domestic investment, and support jobs.
Material Provisions
If passed, the bill will restore Section 179D, the Energy Efficient Commercial Building Deduction to a permanent status. Under current law, Section 179D is scheduled to sunset on June 30, 2026, and any projects started after that date would not qualify for the deduction.
It will also extend the expiration dates of several energy credits including:
45L – Energy Efficient Home Credit
45V – Hydrogen Production Credit
45Y – Clean Electricity Production Credit
48E – Clean Electricity Investment Credit
Action Items for Contractors
This legislation is still in its early stages and has not yet been passed. As a contractor, the smart move right now is to act under current law. If you have upcoming jobs that qualify for Section 179D, make sure construction begins before June 30, 2026, and have your documentation in order.
Pipeline decision making – evaluate current projects for 179D and 45L qualification. Timing will determine if a project qualifies
Documentation and compliance – Section 179D requires an engineering certification and energy modeling. Proceed as if the current deadlines still apply today and claim existing incentives now, do not delay.
Early Coordination – Consult with your team of engineers and tax advisors early to avoid missed opportunities and compliance issues.
Bottom Line
If the American Energy Dominance Act does not pass, there will likely be new efforts by congress to stabilize these energy tax incentives. Congress has repeatedly revisited energy tax policy in response to economic and industry conditions.
However, while these incentives are unlikely to go away entirely, their timing, structure, and eligibility requirements remain uncertain. The greater risk for contractors is not the loss of credits, but the instability surrounding them.
Contractors should continue to plan conservatively and work closely with qualified professionals to navigate these incentives and maximize potential tax benefits.
If you have projects in the pipeline that may qualify under Section 179D or related energy credits, now is the time to act. Contact an HBK Construction Solutions advisor to assess your eligibility and make sure your documentation is in order before the June 30 deadline.
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