Utility Companies Get New Tax Break for Repairs Starting 2025: What it Means for Your Electric Bill

The RESILIENCE Act of 2025 is tackling corporate tax rules, specifically for public utility companies. Starting with the 2025 tax year, Section 2 of this bill creates a new way for utilities to lower their taxable income by deducting the costs of repairing and maintaining their infrastructure. Essentially, when these companies calculate their “adjusted financial statement income”—a key number for corporate taxes—they can now reduce it by the money spent on “applicable public utility repair and maintenance,” on top of their standard depreciation deductions (SEC. 2).

The Fine Print on Utility Maintenance

Think of this as tax accounting getting a tune-up. Right now, utilities already deduct depreciation (the decline in value of assets over time) from their income. This bill adds repair and maintenance costs to that list of deductions, provided those costs are for property covered under specific utility property rules (Section 168(i)(10)). The catch is that the deduction has to match how the expense was treated on the company’s official financial statement, meaning they can’t just make up a number—it has to be documented depreciation on the books. The Treasury Secretary is tasked with writing the rules to make sure this new process aligns perfectly with existing tax law, which suggests things are about to get complicated (SEC. 2).

Who Benefits and Why It Matters to You

This change is a clear win for public utility companies, like those providing your electricity, water, or gas. By reducing their adjusted financial statement income, they reduce their tax burden. The big question for the rest of us is whether this tax break translates into better service or lower costs. The argument often made is that this incentive encourages utilities to perform crucial maintenance—like replacing aging power lines or fixing leaky pipes—since they get a tax benefit for doing so. For a busy homeowner in a suburban area, this could mean more reliable power and fewer outages during a storm.

However, there’s a flip side. When the federal government grants a tax break, it means less tax revenue coming into the Treasury. If the utility company pockets the savings without investing it or passing it along, then the consumer (you) and the federal budget bear the cost. Because the bill is somewhat vague on the exact definition of “applicable public utility repair and maintenance,” there is a slight risk of disputes or companies over-classifying expenses to maximize the deduction. Ultimately, while the bill aims to support infrastructure investment, the real-world impact on your monthly utility bill remains to be seen, depending entirely on how utility companies choose to utilize this new financial flexibility starting in 2025.