Energy Burden Tax Credit Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7044 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7044

  To amend the Internal Revenue Code of 1986 to establish the energy 
                             burden credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 13, 2026

Mr. Pappas (for himself and Mr. Lawler) 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 establish the energy 
                             burden credit.

    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 ``Energy Burden Tax Credit Act''.

SEC. 2. ENERGY BURDEN CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following new section:

``SEC. 36C. ENERGY BURDEN CREDIT.

    ``(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 75 percent of qualified energy 
expenses of such individual for such taxable year.
    ``(b) Qualified Energy Expenses.--For purposes of this section, the 
term `qualified energy expenses' means so much of the amounts paid or 
incurred by the taxpayer for fuel or electricity to heat or cool the 
taxpayer's principal residence (as such term is used in section 121) as 
exceeds 3 percent of the modified adjusted gross income of such 
taxpayer for the taxable year, determined without regard to any amount 
which is reimbursed or provided as a subsidy by any governmental 
program.
    ``(c) Limitations.--
            ``(1) Dollar limitation.--The credit allowed under 
        subsection (a) shall not exceed $1,500 ($3,000 in the case of a 
        joint return).
            ``(2) Income limitation.--No credit shall be allowed under 
        subsection (a) for the taxable year if the modified adjusted 
        gross income of the taxpayer for the taxable year exceeds 
        $75,000 ($150,000 in the case of a joint return).
    ``(d) Modified Adjusted Gross Income.--For purposes of this 
section, the term `modified adjusted gross income' means the adjusted 
gross income of the taxpayer for the taxable year determined without 
regard to sections 911, 931, and 933.
    ``(e) Termination.--No credit shall be allowed under subsection (a) 
for any taxable year beginning after December 31, 2027.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``, 36C'' after ``36B''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``, 36C'' after ``, 36B''.
            (3) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting after the item relating to section 36B 
        the following new item:

``Sec. 36C. Energy burden credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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