Disaster Zone Energy Affordability and Investment Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7450 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7450

   To amend the Internal Revenue Code of 1986 to allow a portion of
  general business credit carryforwards to be transferred by certain
taxpayers affected by federally declared disasters and other incidents.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 9, 2026

  Mr. Steube (for himself, Mr. Murphy, Mr. Buchanan, Ms. DelBene, Ms.
   Sewell, Mr. Hudson, Mr. Edwards, Mr. Soto, Mr. Moskowitz, and Mr.
  Harrigan) introduced the following bill; which was referred to the
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

   To amend the Internal Revenue Code of 1986 to allow a portion of
  general business credit carryforwards to be transferred by certain
taxpayers affected by federally declared disasters and other incidents.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Zone Energy Affordability
and Investment Act''.

SEC. 2. CERTAIN CARRYFORWARDS OF GENERAL BUSINESS CREDIT TREATED AS
              TRANSFERRABLE CREDITS FOR TAXPAYERS AFFECTED BY CERTAIN
              DISASTERS.

    (a) In General.--Section 6418(f)(1)(A) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new clause:
                            ``(xiii) so much of the amount of the
                        applicable general business credit
                        carryforwards as does not exceed the eligible
                        expenditures made by the taxpayer during the
                        taxable year.''.
    (b) Applicable General Business Credit Carryforwards.--Section
6418(f) of such Code is amended by adding at the end the following new
paragraph:
            ``(3) Definitions and rules related to applicable general
        business credit carryforwards.--For purposes of paragraph
        (1)(A)(xiii)--
                    ``(A) In general.--The term `applicable general
                business credit carryforwards' means, with respect to
                any taxable year, the sum of the amounts described in
                section 38(a)(1) which--
                            ``(i) are carried to any taxable year
                        beginning after December 31, 2023, and
                            ``(ii) attributable to any credit described
                        in clauses (ii) and (ix) of subparagraph (A).
                    ``(B) Eligible expenditures.--
                            ``(i) In general.--The term `eligible
                        expenditures' means amounts paid or incurred by
                        the taxpayer--
                                    ``(I) for the purpose of carrying
                                out a trade or business in a qualified
                                disaster area, and
                                    ``(II) on or before the last day of
                                the second calendar year following the
                                calendar year in which the declaration
                                or determination described in clause
                                (ii) with respect to such qualified
                                disaster area was made.
                            ``(ii) Qualified disaster area.--The term
                        `qualified disaster area' means--
                                    ``(I) any area with respect to
                                which a major disaster was declared
                                after December 31, 2023, by the
                                President under section 401 of the
                                Robert T. Stafford Disaster Relief and
                                Emergency Assistance Act, or
                                    ``(II) any area which is determined
                                by the Governor of a State to be an
                                area affected by a State declared
                                disaster (as defined in section
                                165(h)(5)(C) of the Internal Revenue
                                Code of 1986 (as added by Public Law
                                119-21)) if the incident giving rise to
                                the State declared disaster occurred
                                after December 31, 2023.
                    ``(C) Application to consolidated groups.--All
                members of an affiliated group filing a consolidated
                return shall be treated as one taxpayer.''.
    (c) Conforming Amendment.--Section 6418(f)(1)(C) of such Code is
amended by striking ``The term'' and inserting ``Except as provided in
paragraph (1)(A)(xiii), the term''.
    (d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
    (e) Special Rule.--Notwithstanding section 6418(g)(1) of the
Internal Revenue Code of 1986, the Secretary of the Treasury (or the
Secretary's delegate) shall not require registration with respect to
the portion of any applicable general business credit carryforwards (as
defined in section 6418(f)(3) of such Code, as added by this section)
which relates to a taxable year beginning with or before the taxable
year that the online registration tool for such registration has been
updated to account for the provisions of this section.
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