Disaster Zone Energy Affordability and Investment Act

Key Points

• This bill allows businesses in disaster areas to sell their unused energy tax credits to other companies for cash. Normally, these credits can only be used to lower a company's own tax bill, but this change provides a way to get money quickly when it is needed most.
• To be eligible, a business must be located in a place where a major disaster was declared by the President or a Governor after 2023. This is meant to help communities recovering from events like major storms, floods, or fires.
• The amount of credit a business can sell is limited to what they spent on business expenses in the disaster zone. This ensures the program supports local recovery efforts and helps businesses stay afloat while they rebuild.
• The policy applies to expenses made within two years of a disaster declaration. This gives business owners a specific window of time to use their tax credits to fund repairs, payroll, or other costs of staying open.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.