POWER Act of 2025

This bill creates a small tax break to help people buy an emergency generator for their main home. If you qualify, you could get up to $500 back at tax time based on what you spent on a generator during the year.

You must live in an area that had two or more federally declared major disasters in the last five years, and you must have received individual federal disaster aid during that time. Public health emergencies do not count toward this rule.

• Who is affected: People whose main home is in a place hit by two or more major disasters in the past five years and who received individual disaster assistance.
• What changes: A tax credit up to $500 for buying an emergency generator for your home, taken for the year you buy it.
• Income limits: The credit shrinks by $100 for every $25,000 your income is over $300,000 for joint filers or $150,000 for others.
• When: Only generators bought within two years after the law takes effect qualify.