Sponsors
The bill increases resilience of critical facilities in flood- and hurricane-prone areas by subsidizing generator installations, improving public safety and reducing local emergency burdens, but does so at the cost of federal revenue, with some tax-treatment limits for claimants and potential administrative uncertainty.
Hospitals, nursing homes, grocery stores, and gas stations in high-risk flood or hurricane areas are more likely to maintain power during disasters because the bill provides a 30% tax credit for installing backup generators.
Hospitals, nursing homes, grocery stores, and gas stations receive a 30% tax credit for generator installations, lowering their net installation costs and making resilience investments more affordable.
Local governments and rural communities will face reduced emergency-response and recovery burdens because the credit encourages private-sector investment in community resilience.
Taxpayers will effectively subsidize private businesses' generator purchases because the 30% tax credit reduces federal revenue and increases budgetary costs.
Small businesses and hospitals claiming the credit cannot also deduct the same generator expenses and must reduce their property basis, which can limit other tax benefits over time.
Small businesses and hospitals may face uncertainty or delays in accessing the credit because Treasury (with FEMA consultation) controls area and critical-business designations, complicating planning.
Based on analysis of 2 sections of legislative text.
Creates a 30% federal tax credit for qualified disaster-preparedness generator expenses for designated critical businesses in Treasury/FEMA-designated high-risk flood/hurricane areas.
Introduced May 21, 2025 by Morgan Luttrell · Last progress May 21, 2025
Creates a 30% federal tax credit for certain businesses that buy and install electric generators for disaster preparedness in areas the Treasury Secretary (after consulting FEMA) designates as high risk for flooding or hurricanes. The credit applies to ‘‘specified taxpayers’’ deemed critical after floods or hurricanes, explicitly including hospitals, nursing homes, grocery stores, and gas stations. The credit reduces any duplicate tax benefit for the same expense (no double-dipping), requires a reduction in asset basis by the credit amount, is included in the general business credit, and applies to amounts paid or incurred after enactment.