“To amend the Internal Revenue Code of 1986 to establish a refundable tax credit for residential energy expenditures.”
No CRS summary available for this bill.
This section establishes a new Residential Energy Expenditures Credit under new IRC §36A, allowing an individual a dollar-for-dollar credit against income tax equal to qualified expenditures for electricity, natural gas, or propane used in the taxpayer's principal U.S. residence during an applicable taxable year, subject to a $1,200 annual limit ($2,400 for joint returns or heads of household). An applicable taxable year is any year in which the average implicit price deflator for personal consumption expenditures (PCE), as published by the Bureau of Economic Analysis, for the 12-month period ending December 31 exceeds 102% of the average for the prior 12-month period; the credit phases out for modified adjusted gross income over $75,000 ($150,000 for joint returns or heads of household, with a $25,000 phaseout range or $50,000 for joint returns or heads of household); qualified expenditures include those reimbursed by federal, state, local, or Tribal energy assistance programs; and credit refunds are excluded from income for federal means-tested programs. The provision applies to taxable years beginning after December 31, 2025, and includes conforming amendments to IRC §6211 and the table of sections.