UPLIFT Act

Tax credit for home energy bills

This bill would create a federal tax credit for amounts you pay for electricity, natural gas, or propane at your main U.S. home. The credit would cover your qualifying energy spending up to $1,200 if you file single, or $2,400 if you file jointly or as head of household. The credit would apply only in years when a PCE inflation test is met (the 12-month PCE ending Dec 31 exceeds 102% of the prior 12-month average). The credit would be phased down for higher incomes: it would phase out between $75,000 and $100,000 MAGI for singles and between $150,000 and $200,000 for joint filers and heads of household. The bill treats the credit as a nonrefundable income tax credit and would apply to tax years beginning after Dec 31, 2025. Energy costs reimbursed by federal, state, local, or Tribal assistance would still count, and any refund from this credit would not be treated as income or a resource for federal means-tested programs for the month received and the following month.