Disaster Zone Energy Affordability and Investment Act
Summary
What This Bill Does
The bill amends section 6418 of the Internal Revenue Code so certain applicable general business credit carryforwards can be treated as transferable credits, but only up to the taxpayer's eligible expenditures for carrying out a trade or business in a qualified disaster area. Covered carryforwards are section 38(a)(1) amounts carried to taxable years beginning after December 31, 2023 and attributable to the listed section 6418 credit categories. Eligible expenditures must be paid or incurred in a qualified disaster area on or before the last day of the second calendar year after the relevant disaster declaration or determination. Qualified disaster areas include areas with post-2023 Stafford Act major disaster declarations and areas affected by post-2023 state-declared disasters. Consolidated groups are treated as one taxpayer. The amendments apply to taxable years ending after enactment, and Treasury may not require registration for pre-tool taxable years for the carryforward portion if the online registration tool was not yet available.
Who Benefits and How
Businesses operating in federally or state-declared disaster areas benefit from being able to monetize certain unused general business credit carryforwards through transferability tied to disaster-area expenditures. Disaster-affected communities may benefit if transferable credits help finance business recovery, energy, or investment activity.
Who Bears the Burden and How
Treasury and IRS must administer new carryforward-transfer rules, disaster-area definitions, consolidated-group treatment, expenditure caps, effective dates, and registration relief. Credit purchasers and taxpayers must substantiate eligible expenditures, qualified disaster-area status, credit origins, and transfer limits.
Key Provisions
- Adds applicable general business credit carryforwards to the transferable-credit list up to eligible disaster-area business expenditures.
- Limits eligible expenditures to amounts paid or incurred in a qualified disaster area by the end of the second calendar year after the disaster declaration or determination.
- Defines qualified disaster areas to include post-2023 Stafford Act major disasters and qualifying post-2023 state-declared disasters.
- Treats consolidated return groups as one taxpayer and bars Treasury from requiring registration for certain pre-tool carryforward portions.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Lets taxpayers in qualified disaster areas transfer certain post-2023 general business credit carryforwards up to eligible business expenditures made within two calendar years after a federal major-disaster declaration or qualifying state disaster determination.
Key Policy Areas
Tax, Disaster Recovery, Energy
Primary Purpose
Lets taxpayers in qualified disaster areas transfer certain post-2023 general business credit carryforwards up to eligible business expenditures made within two calendar years after a federal major-disaster declaration or qualifying state disaster determination.
Policy Domains
Substantive provisions
Identified Gains
- Disaster-area businesses
- Energy project developers
- Credit purchasers
- Disaster-affected communities
Identified Costs
- Treasury Department
- Internal Revenue Service
- Taxpayers transferring credits
- Consolidated corporate groups
Sponsors
Legislative Progress
In CommitteeReferred to the House Committee on Ways and Means.
Introduced in House
Mr. Steube (for himself, Mr. Murphy, Mr. Buchanan, Ms. DelBene, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
Amounts paid or incurred to carry out a trade or business in a qualified disaster area within the bill's timing limits.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology