To amend the Internal Revenue Code of 1986 to allow individuals a credit against income tax of at least $500 to offset the cost of high 2005 gasoline and diesel fuel prices.

September 20, 2005

Mr. CHABOT introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow individuals a credit against income tax of at least $500 to offset the cost of high 2005 gasoline and diesel fuel prices.

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 `Gasoline Price Relief Act of 2005'.

SEC. 2. CREDIT AGAINST INCOME TAX TO OFFSET COST OF HIGH 2005 GASOLINE AND DIESEL FUEL PRICES.

(a) In General- Subchapter B of chapter 65 of the Internal Revenue Code of 1986 (relating to abatements, credits, and refunds) is amended by adding at the end the following new section:

`SEC. 6431. NONREFUNDABLE CREDIT TO OFFSET COST OF HIGH 2005 GASOLINE AND DIESEL FUEL PRICES.

`(a) Allowance of Credit- In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by chapter 1 for the taxpayer's last taxable year ending in 2005 the amount of $500 ($1,000 in the case of a joint return).

`(b) Definitions- For purposes of this section--

`(1) ELIGIBLE INDIVIDUAL-

`(A) IN GENERAL- The term `eligible individual' means any individual to whom is registered under State law any qualified highway vehicle.

`(B) EXCEPTIONS- Such term shall not include--

`(i) any estate or trust,

`(ii) any nonresident alien individual, and

`(iii) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins.

`(2) QUALIFIED HIGHWAY VEHICLE-

`(A) IN GENERAL- The term `qualified highway vehicle' means any highway vehicle fueled in whole or in part by gasoline or diesel fuel.

`(B) EXCEPTION FOR BUSINESS VEHICLES- Such term shall not include any vehicle all of the use of which is in any trade or business.

`(c) Credit Treated as Nonrefundable Personal Credit- For purposes of this title, the credit allowed under this section shall be treated as a credit allowable under subpart A of part IV of subchapter A of chapter 1.'.

(b) Clerical Amendment- The table of sections for such subchapter B is amended by adding at the end the following new item:

`Sec. 6431. Nonrefundable credit to offset cost of high 2005 gasoline and diesel fuel prices.'.

(c) Effective Date- The amendments made by this section shall apply to taxable years ending during 2005.

END