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.

Bill: 119-hr-615
Sponsor: full_name: Rep. Gottheimer, Josh [D-NJ-5]
Introduced: 2025-01-22
Policy area: Taxation
Subjects: Energy prices

Income tax credits

Landlord and tenant

Public utilities and utility rates
Latest action: action_date: 2025-01-22
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2025-01-22
action_desc: Introduced in House
text: <p>This bill establishes a refundable tax credit of up to $350 for qualified energy costs, subject to limitations.</p><p>Under the bill, <em>qualified energy costs</em> 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.</p><p>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.</p><p>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</p><ul><li>foreign housing costs;</li><li>foreign earned income; and</li><li>income sourced to or effectively connected with a trade or business in Puerto Rico, Guam, American Samoa, or the Northern Mariana Islands.</li></ul><p>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.</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 615 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.

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: 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.