H.R.615 - 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. (119th Congress)
Summary
H.R. 615 proposes a refundable tax credit for individuals to offset the costs of gas and electricity for their primary residences. The credit is capped at $350 per taxable year and is subject to income limitations, phasing out completely for individuals with modified adjusted gross income exceeding $200,000 ($400,000 for joint returns). The bill also includes provisions for reporting requirements for landlords who include utility costs in rent.
Expected Effects
If enacted, this bill would provide direct financial relief to eligible individuals and families to help offset energy costs. It could also incentivize energy consumption, although the income limitations aim to target the credit towards lower and middle-income households. Landlords would also need to provide additional reporting.
Potential Benefits
- Provides direct financial assistance to individuals and families for essential utility costs.
- Targets assistance to lower and middle-income households through income limitations.
- Could reduce financial strain on vulnerable populations, particularly during periods of high energy prices.
- Increases disposable income for eligible individuals, potentially stimulating local economies.
- The reporting requirements for landlords could increase transparency in rental costs.
Potential Disadvantages
- Increases government spending and could contribute to budget deficits.
- The income limitations may exclude some individuals who still struggle with energy costs.
- The credit amount may be insufficient to significantly offset energy costs for some households.
- Potential for increased complexity in tax filing, especially for those claiming the credit.
- The credit could incentivize energy consumption, potentially offsetting environmental benefits from energy conservation efforts.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause (Article I, Section 8) of the Constitution, which grants Congress the power to lay and collect taxes to provide for the general welfare of the United States. The establishment of a tax credit falls under Congress's power to tax and spend for the benefit of the population. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
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).