The POWER Act of 2025 creates a federal tax credit to help homeowners in disaster-prone areas purchase emergency generators. Specifically, it allows a tax credit of up to $500 for individuals whose primary residence is located in an area that experienced two or more major federally-declared disasters within the past five years and who received federal disaster assistance for one of those events. The credit phases out for higher-income households, reducing by $100 for every $25,000 of income above $150,000 (or $300,000 for joint filers). The credit is temporary and expires two years after the bill becomes law, meaning generators must be purchased within that window to qualify. This legislation targets homeowners in disaster-prone regions across the country, helping them afford backup power to maintain electricity during outages caused by severe weather or other disasters.
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