Hospitals, nursing homes, grocery stores, gas stations, and other critical businesses in areas at high risk of hurricanes or flooding could claim a 30% tax credit for buying and installing backup generators. FEMA and the IRS would work together to define which businesses qualify as "critical" and which areas are considered high-risk. The credit is meant to help essential businesses keep the lights on during natural disasters when the power grid goes down.
Congressional Summary
Critical Businesses Preparedness ActThis bill establishes a new tax credit, as part of the general business tax credit, for a percentage of the costs for certain businesses that are critical in the aftermath of a flood or hurricane to purchase and install an electric generator. Specifically, under the bill, hospitals, nursing homes, grocery stores, gas stations, and other businesses determined to be critical in the aftermath of a flood or hurricane are allowed a tax credit for 30% of the costs paid (or incurred) to purchase and install an electric generator in an area at high risk of flooding or hurricanes.The bill requires taxpayers to reduce the basis (cost for federal tax purposes) of an electric generator by the amount for which the tax credit is claimed. Further, taxpayers may not claim other federal tax benefits in addition to the tax credit for the same electric generator expenses.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-05-21
- Date Added
- 2026-04-16