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To amend the Internal Revenue Code of 1986 to establish a refundable tax credit for individuals for amounts paid for gas and electricity for primary residences.
1/23/2025, 9:20 AM
Summary of Bill HR 615
The purpose of this bill is to provide financial relief to individuals who may be struggling to afford the rising costs of gas and electricity. By offering a refundable tax credit, the government hopes to alleviate some of the financial burden placed on individuals and families who rely on these utilities for their daily needs.
If passed, individuals who qualify for the tax credit would be able to claim a portion of the money they spend on gas and electricity as a refund on their taxes. This would provide much-needed assistance to those who are facing financial hardship due to the high costs of these essential utilities. Overall, the Gas and Electricity Refund Act seeks to provide financial relief to individuals and families who are struggling to afford the basic necessities of gas and electricity. By offering a refundable tax credit, the government hopes to help alleviate some of the financial strain placed on individuals and families in need.
Congressional Summary of HR 615
This bill establishes a refundable tax credit of up to $350 for qualified energy costs, subject to limitations.
Under the bill, qualified energy costs are defined as amounts paid by an individual to (1) a utility for gas or electric service to a principal residence, or (2) a landlord for gas or electric service provided by a utility if such amounts are included in the rent for leased property used as the individual’s primary residence.
The bill requires a landlord to report the portion of rent attributable to gas and electric service to the Internal Revenue Service and the tenant by the end of January each year.
Under the bill, an individual with a modified adjusted gross income (MAGI) in excess of $200,000 (or $400,000 for a joint filer) may not claim the tax credit for qualified energy costs. Under the bill, MAGI is the taxpayer's adjusted gross income increased by amounts excluded from gross income for
- foreign housing costs;
- foreign earned income; and
- income sourced to or effectively connected with a trade or business in Puerto Rico, Guam, American Samoa, or the Northern Mariana Islands.
Finally, the tax credit for qualified energy costs may not be claimed by an individual who may be claimed as a dependent by someone else or if another tax credit or tax deduction is claimed for the same costs.
