Congress·In Committee·H.R. 7044

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

Energy Burden Tax Credit Act

2 months ago·View on Congress.gov

Legislative Progress

House

Senate

President

Law

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

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Mixed Impacts(2)

Renter

Neutral

Chronic Illness

Neutral

Positive Impacts(2)

Housing Assistance

Helps

Child Tax Credit

Helps

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.