POWER Act of 2025

Bill Number

H.R. 2599

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-04-02: Referred to the House Committee on Ways and Means.

Last Updated

2025-10-25T08:05:43Z

AI-Generated Summary

Purpose

The Preventing Outages With Electricity Reinforcement Act of 2025 (POWER Act of 2025) aims to provide tax incentives for individuals in disaster-prone areas to purchase emergency generators, helping them maintain power during outages caused by natural disasters. It encourages personal preparedness in regions frequently affected by major disasters, excluding those related to public health emergencies.

Key Provisions

• Tax Credit Amount: Eligible individuals can claim a non-refundable tax credit of up to $500 for the cost of buying an emergency generator for their main home (principal residence).
• Eligibility (Qualified Individual):
• The person's main home must be in an area where at least two "covered major disasters" (disasters declared by the federal government under the Stafford Act for events like hurricanes or floods, but not public health crises) occurred in the five years ending on the last day of the tax year.
• The individual must have received personal aid (e.g., financial or material support) under the Stafford Act for at least one of those disasters during that five-year period.
• Income Limits: The credit phases out for higher earners. It reduces by $100 for every $25,000 that modified adjusted gross income (a measure of income that includes some normally excluded foreign earnings) exceeds $300,000 for married couples filing jointly or $150,000 for single filers or others.
• Definitions:
• Principal residence: The main home where the taxpayer lives most of the time, as defined in existing tax rules for home sale exclusions.
• Covered major disaster: A federally declared disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, excluding public health-related declarations.
• Duration: The credit applies only to generators bought within two years of the law's enactment and is available starting from the date the law is passed.

Significant Changes to Existing Law

• Adds a new section (25F) to the Internal Revenue Code of 1986, creating this targeted tax credit alongside other personal credits (like those for energy-efficient homes).
• No changes to broader disaster relief laws, but it introduces a specific incentive tied to prior disaster aid receipt, which is a novel eligibility criterion not previously linked to generator purchases.

Potential Impacts

• On Citizens: Provides financial relief (up to $500) to lower- and middle-income residents in high-risk areas, potentially improving safety and reducing reliance on public utilities during outages. It may encourage more households to install backup power, aiding recovery from events like storms.
• On Government Agencies: The Internal Revenue Service (IRS) will administer the credit, increasing paperwork for claims but with minimal added complexity. It could slightly reduce federal tax revenue (estimated cost not specified in the bill), and the Federal Emergency Management Agency (FEMA) might see indirect benefits from better-prepared communities, potentially lowering future disaster response costs.
• On International Relations: No direct impact, as the bill focuses on domestic tax policy and U.S. disaster declarations.

Main Stakeholders Affected

• Individuals and Households: Primarily those in disaster-vulnerable regions (e.g., coastal or hurricane-prone areas) who have received FEMA individual assistance; low- to moderate-income filers benefit most due to phase-outs.
• Generator Manufacturers and Retailers: Could see increased demand for qualifying emergency generators.
• Taxpayers and IRS: All taxpayers indirectly affected via reduced government revenue; IRS handles verification of eligibility, including disaster declarations and income.
• FEMA and Local Governments: May experience fewer emergency calls in affected areas due to enhanced personal preparedness.

Notable Legal, Constitutional, or Political Implications

• Legal: The credit is straightforward and aligns with existing tax code structures, but eligibility verification could lead to disputes over "covered major disasters" or principal residence status. It does not alter constitutional powers, as taxation and disaster relief fall under Congress's authority.
• Constitutional: No apparent issues; it promotes general welfare through disaster preparedness without infringing on rights.
• Political: Targets Republican-introduced districts (based on sponsors), potentially appealing to voters in disaster-prone states like Texas and Florida. It adds a modest fiscal incentive without broad spending, but critics might view it as favoring specific regions or adding to the federal deficit. The two-year sunset clause allows for future evaluation or extension.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Hunt, Wesley [R-TX-38]

Cosponsors (27)

Rep. Carter, John R. [R-TX-31], Rep. Nehls, Troy E. [R-TX-22], Rep. Williams, Roger [R-TX-25], Rep. Babin, Brian [R-TX-36], Rep. Ellzey, Jake [R-TX-6], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Rutherford, John H. [R-FL-5], Rep. Luttrell, Morgan [R-TX-8], Rep. Gooden, Lance [R-TX-5], Rep. Mills, Cory [R-FL-7], Rep. Lee, Laurel M. [R-FL-15], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Kiley, Kevin [R-CA-3], Rep. Issa, Darrell [R-CA-48], Rep. Luna, Anna Paulina [R-FL-13], Rep. Diaz-Balart, Mario [R-FL-26], Rep. Cammack, Kat [R-FL-3], Rep. Fry, Russell [R-SC-7], Rep. Donalds, Byron [R-FL-19], Rep. Harrigan, Pat [R-NC-10], Rep. Timmons, William R. [R-SC-4], Rep. Mace, Nancy [R-SC-1], Rep. Wittman, Robert J. [R-VA-1], Rep. Dunn, Neal P. [R-FL-2], Rep. LaLota, Nick [R-NY-1], Rep. Fine, Randy [R-FL-6]

Recent Actions

• 2025-04-02: Referred to the House Committee on Ways and Means.
• 2025-04-02: Introduced in House
• 2025-04-02: Introduced in House

Bill Versions

• Preventing Outages With Electricity Reinforcement Act of 2025 — issued 2025-04-02 — PDF (4 pages)