Disaster Zone Energy Affordability and Investment Act

Bill Number

H.R. 7450

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-02-09: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-30T08:06:48Z

AI-Generated Summary

Summary of H.R. 7450: Disaster Zone Energy Affordability and Investment Act

Purpose

This legislation aims to assist certain businesses impacted by disasters by allowing them to transfer a portion of their unused general business tax credits. The goal is to support operations, investments, and energy-related activities in affected areas.

Key Provisions

• Amends the Internal Revenue Code to permit taxpayers in qualified disaster areas to transfer unused general business credit carryforwards, but only up to the amount of their eligible spending in those areas during the taxable year.
• Defines "qualified disaster areas" as locations where the President has declared a major disaster after December 31, 2023, or areas affected by certain state-declared disasters occurring after that date.
• Eligible spending includes amounts paid for carrying out a trade or business in the disaster area, limited to the period ending two years after the disaster declaration or determination.
• Applies the rules to members of affiliated groups filing consolidated tax returns, treating them as a single taxpayer.
• Includes a special rule delaying certain registration requirements with the Treasury Department until systems are updated.
• The changes apply to tax years ending after the bill's enactment.

Significant Changes to Existing Law

• Expands the existing framework for transferring certain tax credits by adding a new category specifically for general business credit carryforwards tied to disaster-affected taxpayers.
• Introduces definitions and limits for these carryforwards and eligible spending, which were not previously available under the transfer rules.
• Modifies an exception in the code to accommodate this new transfer option for the specified credits.

Potential Impacts

• On government agencies: The Internal Revenue Service and Treasury Department would need to administer the new transfers, including updating registration processes, though a temporary exemption applies for early years.
• On citizens and businesses: Affected businesses in disaster zones could gain access to funds by selling credits, potentially aiding recovery, operations, and investments that support energy affordability.
• On international relations: No direct effects identified.

Main Stakeholders Affected

• Businesses and taxpayers operating in federally or state-declared disaster areas after December 31, 2023.
• Companies filing consolidated tax returns with members in such areas.
• The Internal Revenue Service and Treasury Department, responsible for implementing and overseeing the transfers.

Notable Legal, Constitutional, or Political Implications

• Represents an expansion of tax credit transferability rules, which falls under Congress's authority to set tax policy.
• The bill has bipartisan sponsorship but focuses solely on domestic tax relief for disaster recovery without addressing broader constitutional questions.
• No provisions alter existing constitutional frameworks for taxation or federal-state relations.

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

Sponsor

Rep. Steube, W. Gregory [R-FL-17]

Cosponsors (32)

Rep. Murphy, Gregory F. [R-NC-3], Rep. Buchanan, Vern [R-FL-16], Rep. DelBene, Suzan K. [D-WA-1], Rep. Sewell, Terri A. [D-AL-7], Rep. Hudson, Richard [R-NC-9], Rep. Edwards, Chuck [R-NC-11], Rep. Soto, Darren [D-FL-9], Rep. Moskowitz, Jared [D-FL-23], Rep. Harrigan, Pat [R-NC-10], Rep. Bean, Aaron [R-FL-4], Rep. Valadao, David G. [R-CA-22], Rep. LaLota, Nick [R-NY-1], Rep. Franklin, Scott [R-FL-18], Rep. Miller, Carol D. [R-WV-1], Rep. Mast, Brian J. [R-FL-21], Rep. Dunn, Neal P. [R-FL-2], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Bilirakis, Gus M. [R-FL-12], Rep. Wilson, Frederica S. [D-FL-24], Rep. Haridopolos, Mike [R-FL-8], Rep. Lawler, Michael [R-NY-17], Rep. Moore, Tim [R-NC-14], Rep. Lee, Laurel M. [R-FL-15], Rep. Webster, Daniel [R-FL-11], Rep. Davis, Donald G. [D-NC-1], Rep. Diaz-Balart, Mario [R-FL-26], Rep. Kustoff, David [R-TN-8], Rep. Moore, Blake D. [R-UT-1], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Gimenez, Carlos A. [R-FL-28], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Patronis, Jimmy [R-FL-1]

Recent Actions

• 2026-02-09: Referred to the House Committee on Ways and Means.
• 2026-02-09: Introduced in House
• 2026-02-09: Introduced in House

Bill Versions

• Disaster Zone Energy Affordability and Investment Act — issued 2026-02-09 — PDF (5 pages)

Related Bills

• S. 3605 (119th Congress)