RESILIENCE Act of 2025 Repair Expenditures Support Infrastructure, Labor Investment, Energy Needs, and Creates Equity Act of 2025
If enacted, HB 2872 will specifically modify the treatment of repair and maintenance expenses in financial statements. By allowing public utility companies to reduce their adjusted financial statement income by applicable repair and maintenance deductions, the bill aims to promote investment in essential infrastructure. This could lead to improved efficiency and service quality in public utility sectors, which are vital components of the economy.
House Bill 2872, known as the 'Repair Expenditures Support Infrastructure, Labor Investment, Energy Needs, and Creates Equity Act of 2025' or the 'RESILIENCE Act of 2025', aims to amend the Internal Revenue Code of 1986. The primary goal of the bill is to require that adjusted financial statement income be reduced by the amount of certain deductions related to the repair and maintenance of public utility property. This intends to provide financial relief to utility companies that incur costs in maintaining and repairing their infrastructure, thereby supporting the overall stability and reliability of utility services.
Notably, the bill may face scrutiny regarding its implications for federal tax revenue. Opponents may argue that substantial deductions for specific industries could lead to a decrease in overall tax income, raising concerns about equity and fairness within the tax system. Additionally, there may be broader discussions on whether such tax incentives adequately address the underlying needs for infrastructure improvements, or if they disproportionately benefit utility companies at the expense of public resources.