Section 1. Short title
This Act may be cited as the Preventing Outages With Electricity Reinforcement Act of 2025 or the POWER Act of 2025.
(a) In general
Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section:
(a) Allowance of credit
In the case of a qualified individual, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to so much of the amount paid or incurred by such qualified individual to purchase an emergency generator for use in the principal residence of such individual during the taxable year as does not exceed $500.
(1) In general
For purposes of this section, the term qualified individual means an individual—
(A) whose principal residence is located in an area with respect to which 2 or more covered major disasters were declared during the 5-year period ending on the last day of the taxable year, and
(B) who has received individual assistance under section 408 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act with respect to a covered major disaster described in subparagraph (A) during such 5-year period.
(1) In general
The amount of the credit allowed under subsection (a) shall be reduced by $100 for every $25,000 by which the taxpayer’s modified adjusted gross income exceeds—
(A) $300,000 in the case of a joint return, or
(B) $150,000 in the case of any other individual.
(2) Modified adjusted gross income
For purposes of this subsection, the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.
(d) Definitions
For purposes of this section—
(1) Covered major disaster
The term covered major disaster means a major disaster declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act that was not declared for the purpose of public health.
(2) Principal residence
The term principal residence has the same meaning as when used in section 121.
(e) Termination
No credit shall be allowed under subsection (a) with respect to any generator purchased after the date that is 2 years after the date of the enactment of this section.
(1) The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 25E the following new item:
(c) Effective date
The amendments made by this section shall apply to generators purchased after the date of the enactment of this Act.