Disaster Zone Energy Affordability and Investment Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3605 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 3605

   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 SENATE OF THE UNITED STATES

              January 8 (legislative day, January 7), 2026

  Mr. Graham (for himself and Ms. Cantwell) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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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