Utilities get tax break with no strings attached—ratepayers won't see savings

What it does

This bill amends the tax code to allow utilities to deduct repair and maintenance costs of infrastructure property on their tax returns, provided those costs are also recorded as depreciation expenses on their financial statements. The bill targets public utilities that own infrastructure subject to federal depreciation rules, permitting them to reduce their adjusted financial statement income by the amount of these repair deductions, effective for tax years beginning after December 31, 2024.

Why we flagged it

The bill's operative mechanism is a targeted tax deduction for public utilities' repair and maintenance costs. While framed as infrastructure resilience, the actual function is narrowly beneficial tax relief for a specific industry sector.

What the text implies

• The deduction applies only to costs already recorded as depreciation on financial statements, creating a double-benefit structure: utilities deduct the same cost both as depreciation (reducing book income) and as repair/maintenance (reducing taxable income), potentially allowing accelerated cost recovery.
• The bill does not require utilities to pass savings to ratepayers or invest in resilience; the tax benefit flows directly to utility shareholders and parent companies, with no public-interest condition attached.
• By tying the deduction to 'applicable financial statement' treatment, the bill creates incentive for utilities to reclassify capital expenditures as repairs (expensed immediately) rather than capitalized assets, accelerating tax deductions without changing actual infrastructure spending.
• The effective date (January 1, 2025) is retroactive to the current tax year, allowing utilities to claim the deduction on 2025 returns filed in 2026, creating immediate revenue loss without public notice or debate.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill creates a tax deduction for a narrow class of entities (public utilities) without offsetting revenue or public benefit. Utilities pass infrastructure costs to ratepayers regardless; this deduction reduces federal tax revenue without lowering utility bills or improving service. The cost is borne by all other taxpayers and the general public through reduced federal revenue.

Who stands to gain

• publicly traded utilities (electric, gas, water)
• utility holding companies
• utility shareholders

Named in the bill

Internal Revenue Code Section 56A(c)(13), Section 167 (depreciation deductions), Section 168 (accelerated cost recovery system), Section 162 (ordinary business expenses), Section 168(i)(10) (public utility property), public utilities, utility infrastructure owners

Where it stands

11 cosponsors: 8 Democrats, 3 Republicans.

• Apr 10, 2025 — Introduced · Congress.gov: “Introduced in House”
• Apr 10, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

17 lobbying clients named this bill on 21 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $4,670,000 in lobbying spend. A filing names 20 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 96% of bills with at least one filing.

Carol Miller, the sponsor, reported $1,295,500 in PAC receipts in the 2026 cycle. $12,500 of that came from 4 PACs tied to these lobbying clients.

• Entergy Services LLC — $710,000 on 1 filing
• National Grid USA — $500,000 on 1 filing
• Exelon Business Services LLC — $420,000 on 1 filing
• Puget Sound Energy — $400,000 on 1 filing
• Cms Energy Corp — $370,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.