RESILIENCE Act of 2025

Bill Number

H.R. 2872

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-04-10: Referred to the House Committee on Ways and Means.

Last Updated

2025-07-24T08:06:13Z

AI-Generated Summary

Purpose

The RESILIENCE Act of 2025 (H.R. 2872) aims to support public utilities by adjusting how certain repair and maintenance costs are treated under the Corporate Alternative Minimum Tax (CAMT). This tax requires large corporations to pay a minimum amount based on their financial statement income if it exceeds their regular tax liability. The bill ensures that specific deductions for maintaining public utility property reduce this financial statement income, promoting investment in energy infrastructure.

Key Provisions

• Amendment to Depreciation Rules: Updates Section 56A(c)(13) of the Internal Revenue Code (IRC) to reduce "adjusted financial statement income" (a key measure for CAMT calculations) by:
• Standard depreciation deductions under IRC Section 167 for property eligible under Section 168 (general depreciation rules).
• New "applicable public utility repair and maintenance deductions" under IRC Section 162 (ordinary business expenses) for costs incurred on public utility property defined in IRC Section 168(i)(10), such as equipment used for electricity, gas, or water distribution.
• Definition of Applicable Deductions: These are repair and maintenance expenses that:
• Are claimed by the taxpayer for property they own.
• Are recorded as depreciation expenses on the company's financial statements.
• Adjustment Mechanism: The financial statement income must ignore any depreciation already included in the statements and align with tax rules, with the IRS Secretary able to specify additional adjustments for consistency.
• Effective Date: Applies to tax years starting after December 31, 2024.

Significant Changes to Existing Law

• Expands the existing depreciation adjustment in IRC Section 56A(c)(13) to explicitly include repair and maintenance deductions for public utility property, which were previously not separately addressed in CAMT calculations.
• This creates parity between tax deductions and financial statement treatments, preventing double-counting of expenses that could inflate CAMT liability for utilities.

Potential Impacts

• On Government Agencies: The IRS will need to implement and enforce the new deduction rules, potentially reducing federal tax revenue from affected corporations but supporting broader infrastructure goals without direct spending.
• On Citizens: Could lead to more reliable public utility services (e.g., stable electricity or water supply) by incentivizing maintenance, indirectly benefiting consumers through lower risk of outages or rate hikes.
• On International Relations: Minimal direct impact, though it may enhance U.S. energy sector competitiveness by reducing tax burdens on domestic utilities compared to foreign competitors.

Main Stakeholders Affected

• Public Utility Companies: Primary beneficiaries, as they can lower their CAMT payments, freeing up funds for repairs and upgrades to infrastructure like power grids or pipelines.
• Shareholders and Investors: Gain from potentially higher corporate profits and stock values for utility firms.
• Employees in the Utility Sector: May see job stability or growth from increased maintenance activities.
• General Taxpayers and Consumers: Indirectly affected through possible shifts in tax revenue and utility service reliability; no broad impact on individual taxpayers.

Notable Legal, Constitutional, or Political Implications

• Legal: Aligns tax code treatments for financial reporting and deductions, reducing potential disputes over CAMT calculations; relies on existing IRC authority without creating new taxes.
• Constitutional: No apparent challenges, as it involves standard congressional power to regulate taxation under Article I, Section 8.
• Political: Supports bipartisan infrastructure priorities (introduced by representatives from both parties), potentially aiding energy independence and job creation in rural or industrial areas, but could face debate over tax breaks for corporations amid fiscal concerns.

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

Sponsor

Rep. Miller, Carol D. [R-WV-1]

Cosponsors (11)

Rep. Schneider, Bradley Scott [D-IL-10], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Bost, Mike [R-IL-12], Rep. Panetta, Jimmy [D-CA-19], Rep. Carter, Troy A. [D-LA-2], Rep. Budzinski, Nikki [D-IL-13], Rep. Soto, Darren [D-FL-9], Rep. Sánchez, Linda T. [D-CA-38], Rep. Houlahan, Chrissy [D-PA-6], Rep. Sorensen, Eric [D-IL-17], Rep. Moran, Nathaniel [R-TX-1]

Recent Actions

• 2025-04-10: Referred to the House Committee on Ways and Means.
• 2025-04-10: Introduced in House
• 2025-04-10: Introduced in House

Bill Versions

• Repair Expenditures Support Infrastructure, Labor Investment, Energy Needs, and Creates Equity Act of 2025 — issued 2025-04-10 — PDF (4 pages)