HR 6804
110th CONGRESS
2d Session
H. R. 6804
To amend the Internal Revenue Code of 1986 to allow individuals a
temporary refundable credit for the cost of natural gas, home heating oil,
and propane, to allow small businesses, farmers, and fishermen a credit for
motor and other fuel costs, and to increase the credit for nonbusiness energy
property and make it permanent, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
August 1, 2008
Mr. COURTNEY (for himself and Mr. MURPHY of Connecticut) introduced the following
bill; which was referred to the Committee on Ways and Means, and in addition
to the Committees on Energy and Commerce and Education and Labor, for a period
to be subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to allow individuals a
temporary refundable credit for the cost of natural gas, home heating oil,
and propane, to allow small businesses, farmers, and fishermen a credit for
motor and other fuel costs, and to increase the credit for nonbusiness energy
property and make it permanent, 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 `Families and Small Business Energy Tax Relief
Act of 2008'.
SEC. 2. TEMPORARY REFUNDABLE CREDIT AGAINST INCOME TAX FOR NATURAL GAS,
HEATING OIL, AND PROPANE COSTS OF INDIVIDUALS.
(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. TEMPORARY REFUNDABLE CREDIT AGAINST INCOME TAX FOR NATURAL GAS,
HEATING OIL, AND PROPANE COSTS OF INDIVIDUALS.
`(a) General Rule- In the case of an individual, there shall be allowed as
a credit against the tax imposed by subtitle A for the taxable year an amount
equal to the lesser of--
`(1) 50 percent of the amount of the taxpayer's residential energy costs
for such taxable year, or
`(2) $750 ($1,500 in the case of a joint return).
`(1) IN GENERAL- The amount allowable as a credit under subsection (a) for
any taxable year (without regard to this subsection) shall be reduced (but
not below zero) by an amount which bears the same ratio to the amount so
allowable as--
`(A) the excess (if any) of the taxpayer's adjusted gross income over
$75,000 ($150,000 in the case of a joint return), bears to
`(B) $10,000 ($20,000 in the case of a joint return).
`(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 natural gas used in the principal residence of
the taxpayer during the heating season, and
`(B) for heating oil or propane for use in the principal residence of
the taxpayer.
`(2) PRINCIPAL RESIDENCE- The term `principal residence' has the meaning
given to such term by section 121.
`(3) HEATING SEASON- The term `heating season' means September, October,
November, December, January, February, and March.
`(4) SPECIAL RULES- This section shall not apply to fuel used in--
`(A) any residence located outside the United States, or
`(B) any residence which is not the taxpayer's principal place of abode
throughout the heating season.
`(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.
`(2) HOMEOWNERS ASSOCIATIONS, ETC- This section shall apply to homeowners
associations (as defined in section 528(c)(1)), members of such associations,
and tenant-stockholders in cooperative housing corporations (as defined
in section 216) under regulations prescribed by the Secretary.
`(3) 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) Application of Section- This section shall apply to amounts paid or incurred
during 2008 or 2009.'.
(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. Temporary refundable credit against income tax for natural gas,
heating oil, and propane costs of individuals.'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years ending after December 31, 2007.
SEC. 3. TEMPORARY CREDIT AGAINST INCOME TAX FOR SMALL BUSINESSES, FARMERS,
AND FISHERMEN TO OFFSET HIGH FUEL COSTS.
(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to business-related credits) is amended by
inserting after section 45P the following new section:
`SEC. 45Q. TEMPORARY CREDIT FOR SMALL BUSINESSES, FARMERS, AND FISHERMEN
TO OFFSET HIGH FUEL COSTS.
`(a) Allowance of Credit- For purposes of section 38, the fuel cost credit
determined under this section is an amount equal to 15 percent of the amount
paid or incurred by the taxpayer during the taxable year for any creditable
fuel used in any trade or business of the taxpayer if--
`(1) such trade or business is--
`(A) a farming business (as defined by section 263A(e)(4)), or
`(B) commercial fishing (as defined in section 3 of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1802)), or
`(2) such taxpayer is a small business.
`(b) Small Business- For purposes of this section, the term `small business'
means a corporation or partnership which meets the gross receipts test of
section 448(c) for the taxable year (or, in the case of a sole proprietorship,
which would meet such test if such proprietorship were a corporation), except
that such section shall be applied by substituting `$20,000,000' for `$5,000,000'
in each place it appears.
`(c) Creditable Fuel- The term `creditable fuel' means--
`(d) Application of Section- This section shall apply to amounts paid or incurred
during 2008 or 2009.'.
(b) Conforming Amendments-
(1) Section 38(b) of such Code is amended by striking `plus' at the end
of paragraph (32), by striking the period at the end of paragraph (33) and
inserting `, plus', and by adding at the end the following:
`(34) the fuel cost credit determined under section 45Q(a).'.
(2) The table of sections for subpart D of part IV of subchapter A of chapter
1 of such Code is amended by inserting after the item relating to section
45P the following new item:
`Sec. 45Q. Temporary credit for small businesses, farmers, and fishermen
to offset high fuel costs.'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years ending after December 31, 2007.
SEC. 4. MODIFICATIONS OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) Credit Made Permanent- Section 25C of the Internal Revenue Code of 1986
(relating to nonbusiness energy property) is amended by striking subsection
(g).
(b) Increased Credit for Qualified Oil Furnaces; Increase in Lifetime Limitation-
(1) QUALIFIED OIL FURNACES- Paragraph (3) of section 25C(b) of such Code
is amended by redesignating subparagraph (C) as subparagraph (D) and by
striking subparagraph (B) and inserting the following new subparagraphs:
`(B) $150 for any qualified natural gas or propane furnace or hot water
boiler,
`(C) $1,500 for any qualified oil furnace, and'.
(2) LIFETIME LIMITATION- Paragraph (1) of section 25C(b) of such Code is
amended by striking `$500' and inserting `$4,000'.
(c) Increased Credit for Energy-Efficient Building Property- Subparagraph
(D) of section 25C(b)(3) of such Code, as redesigned by subsection (b), is
amended by striking `$300' and inserting `$500'.
(d) Increased in Credit Percentage for Building Envelope Components- Paragraph
(1) of section 25C(a) of such Code is amended by striking `10 percent' and
inserting `25 percent'.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to property placed in service after the date
of the enactment of this Act.
(2) SUBSECTION (a)- The amendment made by subsection (a) shall apply to
property placed in service after December 31, 2007.
SEC. 5. OUTREACH AND WEATHERIZATION ASSISTANCE.
Section 2605 of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8624) is amended by adding at the end the following new subsection:
`(m)(1) There are authorized to be appropriated to the Secretary, in addition
to amounts authorized under section 2602, for each fiscal year--
`(A) $204,000,000 for outreach activities described in subsection (b)(3);
and
`(B) $766,000,000 for weatherization and repair activities described in
subsection (k).
`(2) In any fiscal year for which amounts are appropriated pursuant to this
subsection, no amounts appropriated for carrying out this title other than
such amounts appropriated pursuant to this subsection may be used for the
activities described in paragraph (1)(A) and (B).'.
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