Budget & Taxes (Tax Incentives)

This bill modifies tax code to help businesses in disaster-affected areas use unused tax credits. It allows businesses operating in qualified disaster zones (federally declared after 2023 or state-recognized under specific criteria) to treat certain carried-over tax credits as transferrable credits for eligible expenses. Eligible expenses include costs for business operations in these areas within two years of the disaster declaration. The change applies to tax years ending after the bill's enactment, making it easier for affected businesses to access credit benefits they previously couldn't utilize.

The Nurse Corps Tax Parity Act of 2025 ensures that certain payments and scholarships for nurses in the National Health Service Corps (NHSC) are excluded from federal income tax, matching the tax treatment of similar benefits under existing programs. It updates two key tax code provisions to include the Nurse Corps scholarship program (under section 846 of the Public Health Service Act) in the list of qualifying programs for tax exemption. This directly affects nurses and students receiving NHSC payments or scholarships as part of their service commitments. The bill creates tax parity by removing a potential tax burden for participants, aligning their benefits with other healthcare workforce programs.

The Health Investment Zones Act of 2026 creates a program to designate areas with significant health disparities as "Health Investment Zones" to improve health outcomes. The bill provides tax incentives including a new 30% tax credit for wages paid to qualified Health Investment Zone workers and incentive payments for Medicare services provided in these zones. It also establishes a grant program for community organizations to fund health care improvements and a student loan repayment program for health care practitioners working in designated zones. Areas must meet specific criteria related to income levels, health outcomes, and documented health disparities to qualify for designation, with zones designated for 10 years.

The Broadband Grant Tax Treatment Act (S 674) excludes specific federal and state broadband grants from being counted as taxable income for recipients. It applies to grants from programs like the Broadband Equity, Access, and Deployment Program (under the Infrastructure Investment and Jobs Act) and similar state/local initiatives funded by federal broadband grants. The law prevents double tax benefits by disallowing deductions for expenses covered by the excluded grant and reducing the property’s cost basis by the grant amount. This directly affects broadband providers and local governments receiving these grants, making the funds tax-free without allowing additional tax deductions for the same spending.

HR 3142, the Secure U.S. Leadership in Space Act of 2025, amends the federal tax code to provide spaceports with financial treatment similar to airports. It specifically allows spaceports to qualify for tax-exempt bonds used for infrastructure development and creates special rules for government leases of spaceport land. The bill defines "spaceport" broadly to include facilities for spacecraft manufacturing, launch services, reentry operations, and cargo transport. These changes directly benefit spaceport developers and operators seeking tax advantages for building and operating commercial space infrastructure. The policy change modifies existing tax code sections (142, 146, 149) to exclude spaceport bonds from certain state tax limits and federal guarantee restrictions.