Summary
Lets people subtract the cost of taxes and state-required extra fees found on their gas and electric bills from their yearly income taxes.
What problem does this solve?
Many people pay extra taxes and state-mandated fees on their gas and electric bills, which increases their cost of living. This bill allows people to deduct those specific costs, potentially lowering their overall tax payment.
Who does this affect?
- Taxpayers
- Utility customers
What does this bill do?
Reference
Text:
Section:
Sec. 2(a)
Header:
Deduction for taxes and state-mandated surcharges included on gas or electric...
New deduction for utility bill taxes and fees
Creates a new tax deduction for all taxes and state-required extra fees that appear on a person's gas or electric utility bills.
Amends the Internal Revenue Code
Adds the new deduction to the list of taxes that can be subtracted from income by changing Section 164(a) of the Internal Revenue Code of 1986.
What is the real world impact?
•
Provides financial relief for households
Offers a new tax deduction to help lower the financial burden of high energy costs for individuals and families by making the taxes and fees on utility bills deductible.
•
Reduces federal tax revenue
Creates a new tax deduction, which means the government will collect less tax money. This reduction in revenue could impact the national budget and funding for other government programs.
When does this start?
The changes would apply to tax years that begin after the bill becomes law.