S. 3605

119 S3605 IS: Disaster Zone Energy Affordability and Investment Act
 U.S. Senate
 2026-01-08
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS
  2d Session  S. 3605  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.
1.
Short title
This Act may be cited as the   Disaster Zone Energy Affordability and Investment Act  .
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.