Summary

Allows taxpayers to deduct state and state‑mandated taxes and surcharges that appear on their gas or electric utility bills as an itemized deduction on their federal income tax returns. The change amends the Internal Revenue Code to add this deduction and applies to taxable years beginning after enactment. The provision affects taxpayers who pay utility taxes or surcharges and who itemize deductions; it does not appropriate new funds or impose requirements on state or local governments. The federal revenue impact depends on how many taxpayers claim the new deduction, but the measure is administratively simple: it clarifies that those specific utility charges are deductible.

• Creates an explicit itemized deduction for state taxes and state‑mandated surcharges shown on gas and electric utility bills.
• Amends Section 164(a) of the Internal Revenue Code to add the new deduction and a conforming insertion.
• Effective for taxable years beginning after the date of enactment.
• Only available to taxpayers who itemize deductions on their federal returns.
• No new federal spending or programs are authorized; the change operates through the tax code.
• Likely reduces federal revenues to the extent the deduction is claimed; the text provides no revenue estimate.
• Implementation and compliance are straightforward for taxpayers and preparers; no new reporting structures are mandated for states or utilities.