Tax credit targets home energy costs for low-income households
H.R. 7044 — Energy Burden Tax Credit Act · Filed by Chris Pappas (D-NH) · 5 cosponsors · Introduced Jan 13, 2026 · Referred to committee
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What it does
This bill creates a temporary federal tax credit allowing individuals to deduct 75% of their home heating and cooling costs that exceed 3% of their income, capped at $1,500 per person ($3,000 for joint filers), for households earning under $75,000 ($150,000 joint). The credit expires after 2027 and applies retroactively to 2025 tax returns.
Why we flagged it
The bill's sole operative mechanism is a temporary, income-capped tax credit targeting households with high home energy costs. It is a direct consumer subsidy for energy affordability, not a regulatory or structural change.
What the text implies
- Credit expires after 2027, creating a cliff for households relying on it; no phase-out or transition mechanism is specified.
- Retroactive application to 2025 may create administrative burden for IRS processing amended returns and may delay refunds.
- Credit is not indexed to inflation; real value erodes over the three-year window, reducing benefit in 2026–2027.
- Excludes reimbursements from government programs (e.g., LIHEAP, utility assistance), which may create perverse incentives for households to forgo other aid to claim the credit.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Low- and moderate-income households facing high energy costs receive direct, refundable tax relief without means-testing beyond income caps. The 3% threshold targets genuine hardship (energy burden above normal), and the 75% credit rate meaningfully reduces out-of-pocket costs for qualifying households.
Who stands to gain
- low- and moderate-income households (under $75k/$150k income)
Named in the bill
Internal Revenue Service, U.S. Department of Treasury, IRC Section 36C (new), IRC Section 36B (Affordable Care Act premium credit), IRC Section 121 (principal residence exclusion)
Where it stands
5 cosponsors: 3 Democrats, 2 Republicans.
- Jan 13, 2026 — Introduced · Congress.gov: “Introduced in House”
- Jan 13, 2026 — 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.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (2,332 characters) on Jun 3, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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