No Taxes on Utility Bills Act
- Bill Number
- H.R. 8350
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-04-16: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-21T03:32:01Z
AI-Generated Summary
Summary of H.R. 8350 - No Taxes on Utility Bills Act
Purpose
This bill aims to provide tax relief to individuals by allowing them to deduct certain taxes and state-required fees (surcharges) that appear on their gas or electric utility bills from their federal income taxes.
Key Provisions
- New Deduction: Adds a new paragraph to Section 164(a) of the Internal Revenue Code of 1986, explicitly allowing taxpayers to deduct all taxes and state-mandated surcharges listed on gas or electric utility bills.
- Conforming Change: Updates the introductory language of Section 164(a) to reference these state-mandated surcharges.
- Effective Date: Applies to tax years beginning after the date the bill is enacted into law.
Significant Changes to Existing Law
- Under current law, Section 164(a) allows deductions for specific taxes (like state and local real estate taxes or sales taxes), but does not explicitly include taxes or state-mandated surcharges on utility bills.
- This bill expands the list of deductible items to cover these utility bill charges, making them treated like other allowable state and local taxes.
Potential Impacts
- Citizens: Homeowners and renters paying gas or electric bills could reduce their federal taxable income, potentially lowering their tax bills and easing energy costs.
- Government Agencies: The Internal Revenue Service (IRS) would need to administer and verify these new deductions, possibly leading to reduced federal tax revenue.
- No notable impacts on international relations.
Main Stakeholders Affected
- Taxpayers: Primarily households and businesses receiving gas or electric utility bills.
- States: Governments imposing mandated surcharges on utilities.
- Utility Companies: Indirectly affected, as customers may perceive bills as less burdensome after deductions.
- Federal Government/IRS: Responsible for implementing the deduction rules.
Notable Legal, Constitutional, or Political Implications
- Legal: Straightforward amendment to the tax code; aligns with existing deductions for state and local taxes but requires IRS guidance on what qualifies as a "state-mandated surcharge" (e.g., fees required by state law).
- Constitutional: No apparent challenges; falls under Congress's power to lay and collect taxes (Article I, Section 8).
- Political: Provides targeted relief amid rising energy costs; could influence voter support in high-utility-cost areas, with bipartisan sponsors (Reps. Riley of New York and Van Drew of New Jersey). Referred to House Ways and Means Committee for review.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Van Drew, Jefferson [R-NJ-2]
Recent Actions
- 2026-04-16: Referred to the House Committee on Ways and Means.
- 2026-04-16: Introduced in House
- 2026-04-16: Introduced in House
Bill Versions
- No Taxes on Utility Bills Act — issued 2026-04-16 — PDF (2 pages)