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.
The bill would create a new Electricity and Gas Credit (Sec. 36D) as a refundable tax credit under the Internal Revenue Code. Eligible individuals could claim up to $350 of their qualified energy costs in a tax year against their tax liability, with the credit potentially refundable depending on how Congress designs refundable credits. Qualified energy costs include amounts paid to a utility for gas and electric service at the individual’s principal residence, or amounts paid for gas/electric service included in rent when the individual rents their primary residence. The credit is subject to income limits: modified adjusted gross income (MAGI) must not exceed $400,000 for joint filers or $200,000 for others. There are rules to prevent double benefits with other deductions/credits and to exclude certain dependents. Landlords who bill tenants for energy costs must provide annual receipts. The bill also makes conforming amendments and applies the credit to amounts paid or incurred after enactment.
Key Points
- 1Establishes a new refundable Electricity and Gas Credit (Sec. 36D) available as a credit against tax, capped at $350 per taxable year.
- 2Qualified energy costs include payments to utilities for gas/electric service at the principal residence, or energy costs included in rent if paid by a tenant.
- 3Principal residence defined; uses the same meaning as Section 121 (primary home vs. other residences).
- 4Income limits: MAGI cannot exceed $400,000 for joint filers or $200,000 for others; MAGI is AGI plus certain excluded foreign earned income (911, 931, 933).
- 5No double benefit: credit cannot be claimed for expenses already deducted or credited under other provisions.
- 6No credit for dependents if another taxpayer can claim a Section 151 deduction for that dependent.
- 7Reporting requirement: landlords who include energy costs in rent must provide annual receipts to the Secretary and to the tenant by January 31 following each calendar year.
- 8Conforming amendments to other parts of the Code and U.S. Code, and an effective date applying to amounts paid or incurred after enactment.