Disaster Zone Energy Affordability and Investment Act

Under section 2(a), adding section 6418(f)(1)(A)(xiii) to the Internal Revenue Code, taxpayers can transfer a portion of their applicable general business credit carryforwards that do not exceed eligible expenditures made during the taxable year. This could benefit businesses by allowing them to transfer credits when they have incurred eligible expenses in a qualified disaster area.

Under section 2(b), adding section 6418(f)(3)(B) to the Internal Revenue Code, eligible expenditures are defined as amounts paid or incurred to carry out a trade or business in a qualified disaster area on or before the last day of the second calendar year following the disaster declaration. This provides a clear timeframe for businesses operating in areas affected by major presidential disasters or State-declared disasters after December 31, 2023, to utilize their expenditures.

Under section 2(e), the Secretary of the Treasury is not required to enforce registration for certain applicable general business credit carryforwards relating to a taxable year beginning with or before the taxable year that the online registration tool has been updated. This spares taxpayers from facing registration barriers while administrative updates are being made.