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Internal Revenue Code of 1986

The main body of tax laws in the United States, which the IRS uses to administer federal taxes.

Tax Credit

A direct reduction in the amount of tax a person or company owes, dollar for dollar. It's more valuable than a tax deduction, which only reduces taxable income.

Natural Carbon Sink

In this bill, it refers to specific products like flooring or cabinets made from American-grown deciduous trees, which naturally absorb and store carbon dioxide from the atmosphere.

Energy Efficient Home Improvement Credit (Section 25C)

An existing tax credit for homeowners who make certain energy-saving improvements to their main home, now expanded by this bill to include natural carbon sink expenditures.

Carbon Oxide Sequestration Credit (Section 45Q)

An existing tax credit for capturing and storing carbon dioxide from industrial sources, which this bill modifies by terminating an increased credit amount for new projects.

Deciduous Trees

Trees that typically shed their leaves annually, such as oaks, maples, and birches, as opposed to evergreens like pines.