Graham Introduces Legislation to Provide Relief to South Carolinians Affected by Hurricane Helene, Other Natural Disasters

WASHINGTON - U.S. Senator Lindsey Graham (R-South Carolina) this week introduced the Disaster Zone Energy Affordability and Investment Act, which aims to provide relief to South Carolinians who have been affected by Hurricane Helene or other natural disasters in the past or future.

Amidst the destruction and loss of life in South Carolina, Hurricane Helene damaged power lines across the state, causing millions of homes to go without power.

The Disaster Zone Energy Affordability and Investment Act would allow energy companies to apply unused tax credits from prior years, using the savings to more quickly repair damaged energy infrastructure, lower the overall cost of these projects and pass these savings on to energy customers.

"When Hurricane Helene rolled through South Carolina, it decimated power lines, leaving families without power for days, and in some cases weeks. The road to recovery is costly and still ongoing more than a year later," said Graham. "I am pleased to introduce the Disaster Zone Energy Affordability and Investment Act, which incentivizes energy companies to support reconstruction efforts in communities hit hard by Helene and other natural disasters. By allowing energy companies to utilize unused tax credits, it will spur recovery and in time, pass savings onto the consumer. This legislation is a win-win for South Carolina."

Graham's legislation is supported by several energy companies, including Duke Energy, a major utility provider in South Carolina.

In addition to Graham, the legislation is cosponsored by U.S. Senator Maria Cantwell (D-Washington).

Background on the Disaster Zone Energy Affordability and Investment Act:

• In recent years, Congress has authorized the extension of certain energy tax credits in order to stimulate economic growth and speed up recovery after natural disasters.
• Under current law, businesses are permitted to transfer or sell these tax credits, yet the extent to which they may be used is heavily limited. For example, these energy tax credits are capped so that they can only be used to cover up to 75 percent of a company's tax liability, and they are unable to be applied to prior or future tax liabilities.
• This legislation would permit eligible, taxpaying companies to use energy tax credits - beyond current restrictions - to invest in areas designated as "disasters zones." In order to qualify as a "disaster zone," the area in question must be designated as such by either the President or a state governor.
• In order to receive the full benefit of the tax credits, investments must be used to support energy development projects that assist in the rebuilding of damaged energy infrastructure. By lowering the tax burden on companies contributing to reconstruction efforts, the total cost of these projects will be reduced and communities will be able to rebuild faster after disasters.

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