Bill · H.R. 615· House(119-HR-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.
- Introduced
- 1/22/2025
- Last activity
- 1/22/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Josh Gottheimer
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill proposes to amend the Internal Revenue Code of 1986 to create a new electricity and gas credit. The credit is intended for individuals to offset costs paid for gas and electric service at their principal residence. The credit allows for an amount equal to qualified energy costs up to $350 per taxable year. It applies to payments made directly to a utility or to a person from whom the individual leases their primary residence. However, the credit is subject to specific income limitations and rules regarding dependents.
Yes· 3 of 7
Would households on low incomes be better off under this?+5
The bill provides a $350 tax credit to offset essential energy costs for those below the income thresholds.
Does this cut taxes for middle-income families?+5
The bill provides a refundable tax credit of up to $350 for qualified energy costs to many individuals.
Would middle-income households be better off under this?+4
The credit provides financial relief for energy bills to households earning up to $400,000 for joint returns.
The opposite
Would high-income households be better off under this?-3
The bill specifically excludes households with modified adjusted gross incomes exceeding $400,000 or $200,000.
Does this reduce what the federal government spends?-2
The creation of a new refundable tax credit increases the amount of revenue foregone by the government.
Who it would affect, and how
Potential Positive Impacts for People
-
Financial relief for energy costs: Individuals can receive a credit for qualified energy costs, such as gas and electric service at their principal residence, up to $350 for the taxable year (Section 1(a)).
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Support for renters: The credit extends to individuals who lease their primary residence and include gas and electric service costs in their rent (Section 1(a)(b)(1)(B)).
Potential Negative Impacts for People
-
Income restrictions: Individuals with a modified adjusted gross income exceeding $400,000 for joint returns, or $200,000 for other individuals, will receive a credit of zero (Section 1(a)(d)(1)).
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Restrictions for dependents: No credit is allowed for any individual if another taxpayer can claim a deduction for them under section 151 (Section 1(a)(f)).
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Limitations on double benefits: Individuals cannot claim this credit for any expense for which they are already receiving a deduction or credit under other provisions of the chapter (Section 1(a)(e)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+5Good For Middle Class Households+4Good For Young Adults+3Good For Urban Residents+2Good For High Income Households-3
- Economy And Finance
- Reduces Middle Class Taxes+5Reduces Government Spending-2
- Social Issues And Justice
- Improves Poverty Reduction+3
- Environment Energy And Infrastructure
- Reduces Gas Prices+2
- 1/22/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House