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Congress·In Committee·about 2 months ago

Congress Proposes Tax Credit to Offset High Home Heating and Cooling Costs for Many Households

Also known as: Energy Burden Tax Credit Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(2)
Renter
Neutral
Chronic Illness
Neutral
Positive Impacts(2)
Housing Assistance
Helps
Child Tax Credit
Helps

Key Points

  • Creates a new federal tax credit to help people who spend a big share of their income on home heating or cooling.
  • Credit equals 75% of eligible heating/cooling fuel or electricity costs that are above 3% of your income (after excluding costs covered by government help).
  • Limits the credit to $1,500 per person, or $3,000 for married couples filing jointly.
  • Only available if your income is $75,000 or less ($150,000 or less for joint filers).
  • Would apply for tax years starting after Dec. 31, 2024, and would end after the 2027 tax year.
TaxesEnergyConsumer Protection

Milestones

2 milestones2 actions
Jan 13, 2026House

Referred to the House Committee on Ways and Means.

Jan 13, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Before or during the 2026 tax filing season (if enacted)

IRS would likely add a new tax form or worksheet to calculate the “energy burden credit”

Tax software and preparers would ask for your heating/cooling electricity/fuel costs and subtract any government-paid amounts. You may need records showing what you personally paid.

Related News

2 articles
CPA Practice Advisor·about 1 month ago

Reps. Pappas, Lawler Propose Bipartisan New Energy Tax Credit for Working Families

Covers the Energy Burden Tax Credit proposal: refundable credit tied to energy spending above 3% of income, with $1,500/$3,000 caps and $75k/$150k income limits.

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Yahoo News·about 1 month ago

Pappas proposes bipartisan new energy tax credit for working families

Syndicated story on the Energy Burden Tax Credit Act describing eligibility thresholds, credit caps, and how it would offset heating/cooling costs for households.

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Source Information

Document Type

Congressional Bill

Official Title

Energy Burden Tax Credit Act

Bill NumberHR 7044
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.