H.R.2599 - Preventing Outages With Electricity Reinforcement Act of 2025; POWER Act of 2025 (119th Congress)
Summary
H.R.2599, also known as the POWER Act of 2025, proposes an amendment to the Internal Revenue Code of 1986 to establish an emergency generator tax credit. This credit aims to assist qualified individuals in purchasing emergency generators for their principal residences. The bill targets individuals residing in areas affected by multiple major disasters.
Expected Effects
The bill, if enacted, would provide a tax credit of up to $500 for the purchase of an emergency generator. This credit is available to individuals living in areas with two or more major disaster declarations within a five-year period and who have received individual assistance under the Stafford Act. The credit is subject to income limitations, phasing out for higher-income taxpayers.
Potential Benefits
- Provides financial relief to individuals affected by major disasters.
- Encourages preparedness for future power outages.
- Targets assistance to those in areas with repeated disaster declarations.
- Could reduce strain on emergency services during disasters.
- May improve the resilience of communities vulnerable to power outages.
Potential Disadvantages
- The credit is capped at $500, which may not cover the full cost of a generator.
- Income limitations may exclude some disaster-affected individuals.
- The credit is temporary, expiring two years after enactment.
- Potential for increased tax complexity.
- The bill does not address the environmental impact of increased generator use.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to lay and collect taxes to provide for the common defense and general welfare of the United States. Providing tax credits to individuals affected by disasters can be seen as promoting the general welfare. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).