A bill to amend the Internal Revenue Code of 1954 to provide individuals a refundable credit against income tax for amounts paid or incurred for fuel oil and natural gas for principal residences in excess of the average cost of fuel oil and gas in 1978.

Amends the Internal Revenue Code to permit taxpayers to elect a refundable income tax credit for the cost of fuel oil and natural gas for heating principal residences in excess of the average cost of fuel oil and gas in 1978. Requires a percentage reduction in the amount of such credit for taxpayers whose adjusted gross income exceeds certain specified levels.