Disaster Zone Energy Affordability and Investment Act

Key Points

• This bill, introduced by Senator Graham, helps businesses in areas hit by major disasters like hurricanes or wildfires. It allows them to sell certain unused tax credits to other companies in exchange for immediate cash.
• To qualify, a business must be located in a place where the President or a Governor declared a disaster after 2023. The money they receive must be used to keep their business running or to rebuild within that disaster area.
• Normally, businesses have to wait until they make a profit to use these tax credits to lower their own taxes. This change lets them get the money right away when they need it most to recover from a disaster.
• The bill specifically targets energy-related tax credits. By letting companies sell these credits, it encourages them to stay in disaster-prone areas and continue investing in local energy projects.
• Businesses have a two-year window after a disaster happens to make these investments and use this special tax rule to help fund their recovery.

Impact Analysis

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