Disaster Zone Energy Affordability and Investment Act

This bill amends the Internal Revenue Code to allow certain taxpayers affected by federally declared disasters or state declared disasters after December 31, 2023, to transfer a portion of their general business credit carryforwards to other taxpayers, up to the amount of eligible expenditures made in a qualified disaster area.

Sec. 2, Certain carryforwards of general business credit treated as transferable credits for taxpayers affected by certain disasters: The bill adds a new clause to the existing tax code section on transferable credits, allowing taxpayers to treat as transferable so much of their applicable general business credit carryforwards as does not exceed their eligible expenditures made during the taxable year. Applicable general business credit carryforwards are amounts carried to any taxable year beginning after December 31, 2023, that are attributable to certain specified credits. Eligible expenditures are amounts paid or incurred for carrying out a trade or business in a qualified disaster area, on or before the last day of the second calendar year following the year of the disaster declaration. A qualified disaster area is an area with a major disaster declared by the President after December 31, 2023, under the Stafford Act, or an area determined by a state governor to be affected by a state declared disaster (as defined in the tax code) if the incident occurred after December 31, 2023. Members of an affiliated group filing a consolidated return are treated as one taxpayer. The amendments apply to taxable years ending after the date of enactment. The Treasury Secretary is not required to require registration for the portion of carryforwards relating to a taxable year beginning with or before the taxable year that the online registration tool has been updated for this section.