It has been shown recently by Kapustin and Tomasiello that the mathematical notion of Hamiltonian actions on twisted generalized Kahler manifolds is in perfect agreement with the physical notion of general (2, 2) gauged sigma models with three-form fluxes. In this article, we study the twisted equivariant cohomology theory of Hamiltonian actions on H-twisted generalized complex manifolds. If the manifold satisfies the partial derivative partial derivative-lemma, we establish the equivariant formality theorem. If in addition, the manifold satisfies the generalized Kahler condition, we prove the Kirwan injectivity in this setting. We then consider the Hamiltonian action of a torus on an H-twisted generalized Calabi-Yau manifold and extend to this case the Duistermaat-Heckman theorem for the push-forward measure. As a side result, we show in this paper that the generalized Kahler quotient of a generalized Kahler vector space can never have a (cohomologically) non-trivial twisting. This gives a negative answer to a question asked by physicists whether one can construct (2, 2) gauged linear sigma models with non-trivial fluxes.