Congress offers $350 annual utility credit to ease household energy costs
H.R. 615 — To amend the Internal Revenue Code of 1986 to establish a refundable tax credit for individuals for amounts paid for gas and electricity for primary residences. · Filed by Josh Gottheimer (D-NJ) · Introduced Jan 22, 2025 · Referred to committee
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What it does
This bill creates a new federal tax credit of up to $350 per year for individuals who pay for gas and electricity at their primary residence. The credit phases out for higher earners (above $200,000 for single filers, $400,000 for joint filers) and cannot be claimed by dependents or combined with other energy-related tax benefits.
Why we flagged it
The bill's sole function is to provide a direct, refundable tax credit to households for utility expenses. It is a straightforward consumer subsidy with no hidden riders or complex carve-outs.
What the text implies
- The $350 annual cap may incentivize some households to claim the credit even if they do not itemize deductions, potentially increasing tax-filing complexity for lower-income filers who might otherwise use the standard deduction.
- Renters who pay utilities separately from rent are eligible, but renters whose utilities are bundled into rent depend on landlord reporting (via January 31 receipt requirement); non-compliance by landlords could silently exclude eligible renters.
The full analysis lists 4 implications of this text.
Who stands to gain
households with utility expenses; renters paying utilities separately