# The POWER Act of 2025: Emergency Generator Tax Credit

This bill creates a new tax credit that gives people money back on their taxes if they buy an emergency generator for their home. Specifically, if you purchase a generator, you can claim up to $500 off your federal income taxes. This is a direct reduction in what you owe—not just a deduction—so it's actual money back in your pocket.

However, this credit isn't available to everyone. You can only claim it if you live in an area that has experienced multiple disasters in the past five years and you've already received federal disaster assistance. More specifically, your home must be in a location where at least two major disasters were officially declared during the five-year period ending when you file your taxes, and you must have received individual assistance from the federal government under the Stafford Disaster Relief Act for one of those disasters. This means the credit is targeted at people in disaster-prone areas who have already been through the federal disaster assistance process.

There's also an income limit that reduces the credit for higher earners. If you're married filing jointly and your income exceeds $300,000, the credit starts to phase out—you lose $100 in credit for every $25,000 over that threshold. For single filers, the limit is $150,000. This means wealthier individuals get less benefit from the credit or none at all.

The credit is temporary and only applies to generators purchased within two years of when this law is enacted. After that two-year window closes, you won't be able to claim this credit anymore, even if you buy a generator later.