APGA joined the American Public Power Association, the American Gas Association, and other utility and consumer advocacy groups on a letter to the Department of Treasury this week. The letter asked the department to issue guidance stating utility assistance provided through the use of COVID State and Local Fiscal Recovery Funds should not be taxable as income.Many households have been forced to rely on such assistance to pay their energy bills during the economic downturn caused by the pandemic. The current tax code suggests that disaster assistance is not considered income, but while the department has issued specific guidance stating that emergency rental assistance is not taxable, they have not done the same for utility assistance. That has created uncertainty for the households receiving such assistance, as well as the agencies and utilities administering it. The letter urges the department to provide guidance and certainty on this issue, keeping in mind that the agencies and utilities administering such assistance would need to report it as income to the Internal Revenue Service by February 1, 2022.
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