Energy Burden Tax Credit Act

This bill amends the Internal Revenue Code of 1986 to establish the Energy Burden Credit , designed to provide financial relief to individuals facing high energy costs. The credit allows taxpayers to claim 75 percent of their qualified energy expenses for heating or cooling their principal residence. Qualified energy expenses are defined as amounts paid for fuel or electricity that exceed 3 percent of the taxpayer's modified adjusted gross income, excluding any government reimbursements or subsidies. This threshold ensures that the credit targets those disproportionately affected by energy costs. The credit is subject to specific limitations, including a maximum credit amount of $1,500 for individuals and $3,000 for those filing a joint return. Additionally, an income limitation applies, disallowing the credit for taxpayers with a modified adjusted gross income exceeding $75,000 ($150,000 for joint filers). The amendments made by this section will apply to taxable years beginning after December 31, 2024. However, the credit is temporary, as no credit will be allowed for any taxable year beginning after December 31, 2027 .