Middle Class Energy Initiative Act of 2005

Middle Class Energy Initiative Act of 2005 - Amends the Internal Revenue Code to allow individuals a $500 tax credit for: (1) gasoline and diesel fuel expenses; and (2) home energy consumption expenses. Denies the credit for taxpayers whose adjusted gross income is twice the state median adjusted gross income.

Limits the amortization of geological and geophysical expenses to 90 percent of such expenses.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4026 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4026

   To amend the Internal Revenue Code of 1986 to allow nonrefundable 
credits against income tax for certain gasoline, diesel fuel, and home 
          energy consumption expenses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 2005

   Mr. Crowley (for himself, Mr. Israel, Mr. Grijalva, Ms. Wasserman 
  Schultz, and Mr. Davis of Illinois) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow nonrefundable 
credits against income tax for certain gasoline, diesel fuel, and home 
          energy consumption expenses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Middle Class Energy Initiative Act 
of 2005''.

SEC. 2. CREDITS FOR CERTAIN GASOLINE, DIESEL FUEL, NATURAL GAS, 
              KEROSENE, AND OIL EXPENSES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by adding after section 25D the following 
new sections:

``SEC. 25E. CREDIT FOR QUALIFIED GASOLINE AND DIESEL FUEL EXPENSES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the aggregate qualified 
gasoline and diesel fuel expenses paid or incurred by the individual 
during such taxable year.
    ``(b) Limitations.--
            ``(1) Dollar amount.--The credit allowed under subsection 
        (a) for a taxable year shall not exceed $500.
            ``(2) Adjusted gross income.--If the adjusted gross income 
        of the individual exceeds the amount that is twice the median 
        adjusted gross income of taxpayers residing in the State in 
        which such individual resides, the credit allowed under 
        subsection (a) for a taxable year shall be zero.
            ``(3) Average gasoline price.--In the case of a taxable 
        year in which the average price of a gallon of gasoline, as 
        determined under the U.S. Regular All Formulations Retail 
        Gasoline Prices by the Energy Information Administration of the 
        Department of Energy, is not greater than $1.75 per gallon, the 
        credit allowed under subsection (a) for such taxable year shall 
        be zero.
    ``(c) Qualified Gasoline and Diesel Fuel Expenses.--For purposes of 
this section, the term `qualified gasoline and diesel fuel expenses' 
means amounts paid or incurred by the individual for gasoline (as 
defined by section 4083(a)(2)) and diesel fuel (as defined by section 
4083(a)(3)).

``SEC. 25F. CREDIT FOR QUALIFIED HOME ENERGY CONSUMPTION EXPENSES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the aggregate qualified home 
energy consumption expenses paid or incurred by the individual during 
such taxable year.
    ``(b) Limitations.--
            ``(1) Dollar amount.--The credit allowed under subsection 
        (a) for a taxable year shall not exceed $500.
            ``(2) Adjusted gross income.--If the adjusted gross income 
        of the individual exceeds the amount that is twice the median 
        adjusted gross income of taxpayers residing in the State in 
        which such individual resides, the credit allowed under 
        subsection (a) for a taxable year shall be zero.
    ``(c) Qualified Home Energy Consumption Expenses.--For purposes of 
this section, the term `qualified home energy consumption expenses' 
means amounts paid or incurred by an individual for natural gas, 
kerosene, and oil for home energy consumption.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
such part IV is amended by inserting after the item relating to section 
25D the following new items:

``Sec. 25E. Credit for qualified gasoline and diesel fuel expenses.
``Sec. 25F. Credit for qualified home energy consumption expenses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 3. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.

    (a) In General.--Paragraph (1) of section 167(h) of the Internal 
Revenue Code of 1986 (as amended by section 1329 of the Energy Tax 
Incentives Act of 2005) is amended by striking ``Any geological and 
geophysical expenses'' and inserting ``An amount equal to 90 percent of 
any geological and geophysical expenses''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2005.
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