Home Energy Affordability Tax Relief Act of 2008 or the HEATR Act of 2008 - Amends the Internal Revenue Code to allow individual taxpayers an income-based refundable tax credit for residential energy costs. Limits such credit to the lesser of 33% of such costs or $500.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 6321 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6321
To amend the Internal Revenue Code of 1986 to provide a refundable
credit against income tax to assist individuals with high residential
energy costs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2008
Mr. McHugh 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 provide a refundable
credit against income tax to assist individuals with high residential
energy costs.
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 ``Home Energy Affordability Tax Relief
Act of 2008'' or the ``HEATR Act of 2008''.
SEC. 2. REFUNDABLE CREDIT FOR RESIDENTIAL ENERGY COSTS.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 (relating to rules of special application) is amended by
adding at the end the following new section:
``SEC. 6431. REFUNDABLE CREDIT FOR RESIDENTIAL ENERGY COSTS.
``(a) General Rule.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this subtitle for the
taxable year an amount equal to the lesser of--
``(1) 33 percent of the amount of the taxpayer's
residential energy costs for such taxable year, or
``(2) $500.
``(b) Income Limitation.--
``(1) In general.--The amount allowable as a credit under
subsection (a) for any taxable year shall be reduced (but not
below zero) by an amount which bears the same ratio to the
amount so allowable (determined without regard to this
paragraph) as--
``(A) the amount (if any) by which the taxpayer's
adjusted gross income exceeds $50,000 (twice such
amount in the case of a joint return), bears to
``(B) $10,000.
``(2) Determination of adjusted gross income.--For purposes
of paragraph (1), adjusted gross income shall be determined
without regard to sections 911, 931, and 933.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Residential energy costs.--The term `residential
energy costs' means the amount paid or incurred by the taxpayer
during the taxable year--
``(A) to any utility for electricity or natural gas
used in the principal residence of the taxpayer during
the heating season, and
``(B) for any qualified fuel for use in the
principal residence of the taxpayer but only if such
fuel is the primary fuel for heating such residence.
``(2) Principal residence.--
``(A) In general.--The term `principal residence'
has the meaning given to such term by section 121;
except that no ownership requirement shall be imposed.
``(B) Special rules.--Such term shall not include--
``(i) any residence located outside the
United States, and
``(ii) any residence not used as the
taxpayer's principal place of abode throughout
the heating season.
``(3) Heating season.--The term `heating season' means
October, November, December, January, February, and March.
``(4) Qualified fuel.--The term `qualified fuel' includes
propane, heating oil, kerosene, wood, and wood pellets.
``(d) Other Special Rules.--
``(1) Individuals paying on level payment basis.--Amounts
paid for natural gas under a level payment plan for any period
shall be treated as paid for natural gas used during the
portion (if any) of the heating season during such period to
the extent of the amount charged for natural gas used during
such portion of the heating season. A similar rule shall apply
to electricity and any qualified fuel.
``(2) Homeowners associations, etc.--The application of
this section to homeowners associations (as defined in section
528(c)(1)) or members of such associations, and tenant-
stockholders in cooperative housing corporations (as defined in
section 216), shall be allowed by allocation, apportionment, or
otherwise, to the individuals paying, directly or indirectly,
for the residential energy cost so incurred.
``(3) Dollar amount in case of joint occupancy.--In the
case of a dwelling unit which is the principal residence by 2
or more individuals, the dollar limitation under subsection
(a)(2) shall be allocated among such individuals under
regulations prescribed by the Secretary.
``(4) Treatment as refundable credit.--For purposes of this
title, the credit allowed by this section shall be treated as a
credit allowed under subpart C of part IV of subchapter A of
chapter 1 (relating to refundable credits).
``(e) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning in 2009, each of the dollar amounts contained in
subsections (a)(2) and (b)(1)(A) shall be increased by an
amount equal to--
``(A) such dollar amount, multiplied by
``(B) in the case of--
``(i) the dollar amount contained in
subsection (a)(2), the fuel price inflation
adjustment for 2009, and
``(ii) the dollar amount contained in
subsection (b)(1)(A), the cost-of-living
adjustment determined under section 1(f)(3) for
2009 by substituting `calendar year 2007' for
`calendar year 1992' in subparagraph (B)
thereof.
``(2) Fuel price inflation adjustment.--For purposes of
paragraph (1)(B)(i)--
``(A) In general.--The fuel price inflation
adjustment for 2009 is the percentage (if any) by
which--
``(i) the CPI fuel component for October of
2008, exceeds
``(ii) the CPI fuel component for October
of 2007.
``(B) CPI fuel component.--The term `CPI fuel
component' means the fuel component of the Consumer
Price Index for All Urban Consumers published by the
Department of Labor.
``(3) Rounding.--
``(A) Credit amount.--
``(i) Credit amount.--If the dollar amount
in subsection (a)(2) (after being increased
under paragraph (1)), is not a multiple of $10,
such dollar amount shall be rounded to the
nearest multiple of $10.
``(ii) Income threshold.--If the dollar
amount in subsection (b)(1)(A) (after being
increased under paragraph (1)), is not a
multiple of $50, such dollar amount shall be
rounded to the next lowest multiple of $50.
``(f) Application of Section.--This section shall apply to
residential energy costs paid or incurred after the date of the
enactment of this section, in taxable years ending after such date, and
before January 1, 2010.''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by striking ``or 6428 or'' and
inserting ``, 6428, 6431, or''.
(2) The table of sections for subchapter B of chapter 65 of
such Code is amended by adding at the end the following new
item:
``Sec. 6431. Refundable credit for residential energy costs.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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