S. 3605 allows businesses affected by federally declared disasters to transfer unused tax credits to help fund recovery efforts in disaster zones. Specifically, the bill lets qualifying businesses carry forward and transfer certain general business tax credits—particularly renewable energy and energy efficiency credits earned after 2023—to support operations in areas hit by major disasters declared by the President or by states after December 31, 2023. Businesses have up to two calendar years following a disaster declaration to use these transferred credits for eligible expenditures. The bill applies to tax years ending after its enactment and includes a temporary registration exemption to allow the Treasury Department time to update its tax credit tracking system. This measure aims to reduce the tax burden on disaster-affected businesses as they rebuild and invest in recovery and energy infrastructure.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.