Bill Details
View committees (1)
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would create a refundable federal tax credit for individuals to help cover part of the cost of gas and electricity for their main home. The credit would be worth up to $350 a year and could be claimed for utility bills paid directly to a gas or electric company, or for utility costs included in rent. Higher-income taxpayers would not qualify, and people could not use this credit for the same expense if they already got another tax break for it. The bill would also require landlords who include gas or electricity in rent to give tenants and the IRS a yearly receipt showing the amount tied to those utility costs. If passed, the rule would apply to eligible costs paid or incurred after the law takes effect.
- The credit would be refundable, which means it could still help even if the person owes little or no income tax.
- It would cover qualified energy costs for a primary residence, including utility bills paid directly or utility costs built into rent.
- The credit would be phased out completely for people with modified adjusted gross income above $400,000 for joint filers or $200,000 for everyone else.
- No credit could be claimed for expenses that already received another deduction or credit, and no credit would be allowed for someone who can be claimed as a dependent.
Official Summaries
This bill establishes a refundable tax credit of up to $350 for qualified energy costs, subject to limitations.
Under the bill, qualified energy costs are defined as amounts paid by an individual to (1) a utility for gas or electric service to a principal residence, or (2) a landlord for gas or electric service provided by a utility if such amounts are included in the rent for leased property used as the individual’s primary residence.
The bill requires a landlord to report the portion of rent attributable to gas and electric service to the Internal Revenue Service and the tenant by the end of January each year.
Under the bill, an individual with a modified adjusted gross income (MAGI) in excess of $200,000 (or $400,000 for a joint filer) may not claim the tax credit for qualified energy costs. Under the bill, MAGI is the taxpayer's adjusted gross income increased by amounts excluded from gross income for
- foreign housing costs;
- foreign earned income; and
- income sourced to or effectively connected with a trade or business in Puerto Rico, Guam, American Samoa, or the Northern Mariana Islands.
Finally, the tax credit for qualified energy costs may not be claimed by an individual who may be claimed as a dependent by someone else or if another tax credit or tax deduction is claimed for the same costs.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 615 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 615
To amend the Internal Revenue Code of 1986 to establish a refundable
tax credit for individuals for amounts paid for gas and electricity for
primary residences.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 22, 2025
Mr. Gottheimer introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a refundable
tax credit for individuals for amounts paid for gas and electricity for
primary residences.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ELECTRICITY AND GAS CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36B the following new section:
``SEC. 36D. ELECTRICITY AND GAS CREDIT.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this subtitle
an amount equal to so much of the qualified energy costs of such
individual as do not exceed $350 for the taxable year.
``(b) Qualified Energy Costs.--
``(1) In general.--For purposes of this section, the term
`qualified energy costs' means amounts paid or incurred by the
individual--
``(A) to a utility for gas and electric service at
the principal residence of such individual, or
``(B) to a person from whom such individual leases
such individual's primary residence for gas and
electric service from a utility if such costs are
included in the rent of such individual.
``(2) Utility.--For purposes of this subsection, the term
`utility' has the meaning given such term in section
48(a)(8)(D).
``(c) Principal Residence.--For purposes of this section, the term
`principal residence' has the same meaning as when used in section 121.
``(d) Income Limitation.--
``(1) In general.--In the case of any individual whose
modified adjusted gross income for the taxable year exceeds the
following amounts, the amount of the credit determined under
subsection (a) shall be zero.
``(A) In the case of a joint return, $400,000.
``(B) In the case of any other individual,
$200,000.
``(2) Modified adjusted gross income.--For purposes of
paragraph (1), the term `modified adjusted gross income' means
the adjusted gross income of the taxpayer for the taxable year
increased by any amount excluded from gross income under
section 911, 931, or 933.
``(e) Denial of Double Benefit.--No credit shall be allowed under
subsection (a) for any expense for which a deduction or credit is
allowed under any other provision of this chapter.
``(f) Denial of Credit to Dependents.--No credit shall be allowed
under this section to any individual with respect to whom a deduction
under section 151 is allowable to another taxpayer for a taxable year
beginning in the calendar year in which such individual's taxable year
begins.
``(g) Reporting.--In the case of any person who leases the
principal residence of another individual to such individual and
includes the cost of electricity or gas in rent paid under such lease,
such person shall provide to the Secretary and to the individual, not
later than January 31st of each calendar year, a receipt for the
portion of the rent for the preceding calendar year properly
attributable to such individual's electric and gas service for such
preceding calendar year.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``, 36D'' after ``36B''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``, 36D'' after ``, 36B''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 36B
the following new item:
``Sec. 36D. Electricity and gas credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
<all>