Plain English
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Critical Businesses Preparedness Act This bill establishes a new tax credit, as part of the general business tax credit, for a percentage of the costs for certain businesses that are critical in the aftermath of a flood or hurricane to purchase and install an electric generator. Specifically, under the bill, hospitals, nursing homes, grocery stores, gas stations, and other businesses determined to be critical in the aftermath of a flood or hurricane are allowed a tax credit for 30% of the costs paid (or incurred) to purchase and install an electric generator in an area at high risk of flooding or hurricanes. The bill requires taxpayers to reduce the basis (cost for federal tax purposes) of an electric generator by the amount for which the tax credit is claimed. Further, taxpayers may not claim other federal tax benefits in addition to the tax credit for the same electric generator expenses.
Market Impact Map
Action Timeline
2025-05-21
Referred to the House Committee on Ways and Means.
2025-05-21
Introduced in House
2025-05-21
Introduced in House
Full Bill Text
119 HR 3549 IH: Critical Businesses Preparedness Act U.S. House of Representatives 2025-05-21 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. I 119th CONGRESS 1st Session H. R. 3549 IN THE HOUSE OF REPRESENTATIVES May 21, 2025 Mr. Luttrell introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide critical businesses with a tax credit for electric generators placed in service in certain high risk disaster areas. 1. Short title This Act may be cited as the Critical Businesses Preparedness Act . 2. Credit for electric generators placed in service by critical businesses in high risk disaster areas (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45BB. Credit for electric generators placed in service by critical businesses in high risk disaster areas (a) In general For purposes of section 38, in the case of a specified taxpayer, the qualified disaster preparedness electric generator expenses credit for any taxable year is an amount equal to 30 percent of the qualified disaster preparedness electric generator expenses paid or incurred by the taxpayer during such taxable year. (b) Specified taxpayer For purposes of this section, the term specified taxpayer means any person engaged in a trade or business that is determined by the Secretary, after consultation with the Administrator of the Federal Emergency Management Agency, as being a trade or business that is critical in the aftermath of a flood or hurricane. Such trades or businesses shall not fail to include hospitals, nursing homes, grocery stores, and gas stations. (c) Qualified disaster preparedness electric generator expenses For purposes of this section— (1) In general The term qualified disaster preparedness electric generator expenses means, with respect to any specified taxpayer, any amount paid or incurred by such taxpayer for an electric generator (including costs of installation) placed in service in a high risk disaster area and used in a trade or business referred to in subsection (b). (2) High risk disaster area The term high risk disaster area means any area determined by the Secretary, after consultation with the Administrator of the Federal Emergency Management Agency, as being an area that is at high risk of flooding or hurricanes. (d) Denial of double benefit In the case of any qualified disaster preparedness electric generator expenses with respect to which credit is allowed under subsection (a)— (1) no deduction or credit shall be allowed for, or by reason of, any such expense to the extent of the amount of such credit, and (2) the basis of any property shall be reduced by the amount of such credit to the extent that such expenses were taken into account in determining such basis. . (b) Credit To be part of general business credit Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus , and by adding at the end the following new paragraph: (42) in the case of a specified taxpayer (as defined in section 45BB(b)), the qualified disaster preparedness electric generator expenses credit determined under section 45BB(a). . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45BB. Credit for electric generators placed in service by critical businesses in high risk disaster areas. . (d) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.
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