H.R. 7450 — Disaster Zone Energy Affordability and Investment Act

This section allows taxpayers to transfer under section 6418 applicable general business credit carryforwards—defined as carryforwards to taxable years beginning after December 31, 2023, of credits under clauses (ii) (investment credit) and (ix) of section 38(a)(1)(A)—up to the amount of eligible expenditures for carrying out a trade or business in a qualified disaster area. Eligible expenditures are amounts paid or incurred on or before the last day of the second calendar year following the declaration year for a qualified disaster area, which includes any area subject to a major disaster declaration by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act or a state-declared disaster (as defined in section 165(h)(5)(C)) after December 31, 2023; all members of an affiliated group filing a consolidated return are treated as one taxpayer. (As background, section 6418 enables eligible taxpayers to sell specified clean energy-related tax credits to unrelated parties for cash; this provision extends transferability to certain general business credit carryforwards to aid disaster recovery.) The amendments apply to taxable years ending after enactment, with a special rule waiving Treasury registration requirements for such carryforwards from taxable years beginning before the online registration tool is updated.