[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4449 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4449

   To amend the Internal Revenue Code of 1986 to impose a temporary 
  windfall profit tax on crude oil, to allow a credit against tax for 
qualified fuel-efficient vehicles placed in service during the taxable 
  year, to establish the Energy Assistance Trust Fund, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2005

 Mr. Pallone 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 the Workforce, 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 impose a temporary 
  windfall profit tax on crude oil, to allow a credit against tax for 
qualified fuel-efficient vehicles placed in service during the taxable 
  year, to establish the Energy Assistance Trust Fund, 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 Consumer Energy Assistance and 
Fairness Act of 2005.

SEC. 2. WINDFALL PROFITS TAX.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end the following new chapter:

               ``CHAPTER 56--WINDFALL PROFIT ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; removal price; adjusted base price; 
                            qualified investment.
``Sec. 5898. Special rules and definitions.

``SEC. 5896. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed on any integrated oil company (as 
defined in section 291(b)(4)) an excise tax equal to the excess of--
            ``(1) the amount equal to 50 percent of the windfall profit 
        from all barrels of taxable crude oil removed from the property 
        during each taxable year, over
            ``(2) the amount of qualified investment by such company 
        during such taxable year.
    ``(b) Fractional Part of Barrel.--In the case of a fraction of a 
barrel, the tax imposed by subsection (a) shall be the same fraction of 
the amount of such tax imposed on the whole barrel.
    ``(c) Tax Paid by Producer.--The tax imposed by this section shall 
be paid by the producer of the taxable crude oil.

``SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; ADJUSTED BASE PRICE; 
              QUALIFIED INVESTMENT.

    ``(a) General Rule.--For purposes of this chapter, the term 
`windfall profit' means the excess of the removal price of the barrel 
of taxable crude oil over the adjusted base price of such barrel.
    ``(b) Removal Price.--For purposes of this chapter--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `removal price' means the amount for which 
        the barrel of taxable crude oil is sold.
            ``(2) Sales between related persons.--In the case of a sale 
        between related persons, the removal price shall not be less 
        than the constructive sales price for purposes of determining 
        gross income from the property under section 613.
            ``(3) Oil removed from property before sale.--If crude oil 
        is removed from the property before it is sold, the removal 
        price shall be the constructive sales price for purposes of 
        determining gross income from the property under section 613.
            ``(4) Refining begun on property.--If the manufacture or 
        conversion of crude oil into refined products begins before 
        such oil is removed from the property--
                    ``(A) such oil shall be treated as removed on the 
                day such manufacture or conversion begins, and
                    ``(B) the removal price shall be the constructive 
                sales price for purposes of determining gross income 
                from the property under section 613.
            ``(5) Property.--The term `property' has the meaning given 
        such term by section 614.
    ``(c) Adjusted Base Price Defined.--
            ``(1) In general.--For purposes of this chapter, the term 
        `adjusted base price' means $40 for each barrel of taxable 
        crude oil plus an amount equal to--
                    ``(A) such base price, multiplied by
                    ``(B) the inflation adjustment for the calendar 
                year in which the taxable crude oil is removed from the 
                property.
        The amount determined under the preceding sentence shall be 
        rounded to the nearest cent.
            ``(2) Inflation adjustment.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the inflation adjustment for any calendar year after 
                2006 is the percentage by which--
                            ``(i) the implicit price deflator for the 
                        gross national product for the preceding 
                        calendar year, exceeds
                            ``(ii) such deflator for the calendar year 
                        ending December 31, 2005.
                    ``(B) First revision of price deflator used.--For 
                purposes of subparagraph (A), the first revision of the 
                price deflator shall be used.
    ``(d) Qualified Investment.--For purposes of this chapter--
            ``(1) In general.--The term `qualified investment' means 
        any amount paid or incurred with respect to--
                    ``(A) section 263(c) costs,
                    ``(B) qualified refinery property (as defined in 
                section 179C(c) and determined without regard to any 
                termination date),
                    ``(C) any qualified facility described in paragraph 
                (1), (2), (3), or (4) of section 45(d) (determined 
                without regard to any placed in service date), or
                    ``(D) any facility for the production of alcohol 
                used as a fuel (within the meaning of section 40) or 
                biodiesel or agri-biodiesel used as a fuel (within the 
                meaning of section 40A).
            ``(2) Section 263(c) costs.--For purposes of this 
        subsection, the term `section 263(c) costs' means intangible 
        drilling and development costs incurred by the taxpayer which 
        (by reason of an election under section 263(c)) may be deducted 
        as expenses for purposes of this title (other than this 
        paragraph). Such term shall not include costs incurred in 
        drilling a nonproductive well.

``SEC. 5898. SPECIAL RULES AND DEFINITIONS.

    ``(a) Withholding and Deposit of Tax.--The Secretary shall provide 
such rules as are necessary for the withholding and deposit of the tax 
imposed under section 5896 on any taxable crude oil.
    ``(b) Records and Information.--Each taxpayer liable for tax under 
section 5896 shall keep such records, make such returns, and furnish 
such information (to the Secretary and to other persons having an 
interest in the taxable crude oil) with respect to such oil as the 
Secretary may by regulations prescribe.
    ``(c) Return of Windfall Profit Tax.--The Secretary shall provide 
for the filing and the time of such filing of the return of the tax 
imposed under section 5896.
    ``(d) Definitions.--For purposes of this chapter--
            ``(1) Producer.--The term `producer' means the holder of 
        the economic interest with respect to the crude oil.
            ``(2) Crude oil.--
                    ``(A) In general.--The term `crude oil' includes 
                crude oil condensates and natural gasoline.
                    ``(B) Exclusion of newly discovered oil.--Such term 
                shall not include any oil produced from a well drilled 
                after the date of the enactment of the Windfall Profits 
                Rebate Act of 2005, except with respect to any oil 
                produced from a well drilled after such date on any 
                proven oil or gas property (within the meaning of 
                section 613A(c)(9)(A)).
            ``(3) Barrel.--The term `barrel' means 42 United States 
        gallons.
    ``(e) Adjustment of Removal Price.--In determining the removal 
price of oil from a property in the case of any transaction, the 
Secretary may adjust the removal price to reflect clearly the fair 
market value of oil removed.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
chapter.
    ``(g) Termination.--This section shall not apply to taxable crude 
oil removed after the date which is 3 years after the date of the 
enactment of this section.''.
    (b) Clerical Amendment.--The table of chapters for subtitle E of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

             ``Chapter 56. Windfall profit on crude oil''.

    (c) Deductibility of Windfall Profit Tax.--The first sentence of 
section 164(a) of the Internal Revenue Code of 1986 (relating to 
deduction for taxes) is amended by inserting after paragraph (5) the 
following new paragraph:
            ``(6) The windfall profit tax imposed by section 5896.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to crude oil removed after December 31, 2005, in taxable years 
beginning after such date.

SEC. 3. FUEL-EFFICIENT VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to other credits) is 
amended by inserting after section 30C the following new section:

``SEC. 30D. FUEL-EFFICIENT VEHICLE CREDIT.

    ``(a) Allowance of Credit.--At the election of the taxpayer, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to $1,000 for any qualified fuel-
efficient vehicle placed in service by the taxpayer during the taxable 
year.
    ``(b) Qualified Fuel-Efficient Vehicle.--For purposes of this 
section, the term `qualified fuel-efficient vehicle' means a motor 
vehicle (as defined in section 30(c)(2))--
            ``(1) in which the fuel economy (determined in accordance 
        with section 4064) of such vehicle is rated at not less than 30 
        miles per gallon, and
            ``(2) which is--
                    ``(A) an automobile (as defined in section 
                4064(b)), or
                    ``(B) a truck or van with an unloaded gross vehicle 
                weight rating not greater than 7,500 pounds.
    ``(c) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(2) Recapture.--The Secretary shall, by regulations, 
        provide for recapturing the benefit of any credit allowable 
        under subsection (a) with respect to any property which ceases 
        to be property eligible for such credit.
            ``(3) Property used outside united states, etc. not 
        qualified.--No credit shall be allowed under subsection (a) 
        with respect to any property referred to in section 50(b) or 
        with respect to the portion of the cost of any property taken 
        into account under section 30, 179, or 179A.
    ``(d) Carryforward of Unused Credits.--If the credit allowable 
under subsection (a) for any taxable year exceeds--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and this part 
        (other than this section), over
            ``(2) the tentative minimum tax for the taxable year,
such excess shall be carried to the succeeding taxable year and added 
to the credit allowable under subsection (a) for such taxable year.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2008.''.
    (b) Clerical Amendment.--The table of sections for such subpart B 
is amended by inserting after the item relating to section 30C the 
following new item:

``Sec. 30D. Fuel-efficient vehicle credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 4. ENERGY ASSISTANCE TRUST FUND.

    (a) Creation of Trust Fund.--Subchapter A of chapter 98 of such 
Code is amended by inserting at the end the following new section:

``SEC. 9511. ENERGY ASSISTANCE TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Energy Assistance 
Trust Fund', consisting of such amounts as may be appropriated or 
credited to the Energy Assistance Trust Fund.
    ``(b) Transfer of Certain Taxes.--There are hereby appropriated to 
the Energy Assistance Trust Fund amounts equivalent to the taxes 
received in the Treasury under chapter 56.
    ``(c) Expenditures From Energy Assistance Trust Fund.--As provided 
by appropriation Acts, amounts in the Energy Assistance Trust Fund 
shall be available--
            ``(1) to make grants under the Low-Income Gasoline 
        Assistance Program Act, and
            ``(2) to carry out the Low-Income Home Energy Assistance 
        Act of 1981.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by inserting at the end the 
following new item:

``Sec. 9511. Energy assistance trust fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

SEC. 5. LOW-INCOME GASOLINE ASSISTANCE PROGRAM.

    (a) Short Title.--This section may be cited as the ``Low-Income 
Gasoline Assistance Program Act''.
    (b) Definitions.--For purposes of this section--
            (1) Covered activities.--The term ``covered activities'' 
        means--
                    (A) work activities;
                    (B) education directly related to employment; or
                    (C) activities related to necessary scheduled 
                medical treatment.
            (2) Gasoline.--The term ``gasoline'' has the meaning given 
        the term in section 4082 of the Internal Revenue Code of 1986.
            (3) Household.--The term ``household'' has the meaning 
        given the term in section 2603 of the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8622).
            (4) Poverty level; state median income.--The terms 
        ``poverty level'' and ``State median income'' have the meanings 
        given the terms in section 2603 of the Low-Income Home Energy 
        Assistance Act of 1981.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (6) State.--The term ``State'' means each of the several 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.
            (7) Work activities.--The term ``work activities'' has the 
        meaning given the term in section 407(d) of the Social Security 
        Act (42 U.S.C. 607(d)).
    (c) Emergency Assistance Programs.--The Secretary shall make grants 
to States, from allotments made under subsection (d), to enable the 
States to establish emergency assistance programs and to provide, 
through the programs, payments to eligible households to enable the 
households to purchase gasoline.
    (d) State Allotments.--From the funds appropriated under subsection 
(l) for a fiscal year and remaining after the reservation made in 
subsection (k), the Secretary shall allot to each State an amount that 
bears the same relation to such remainder as the amount the State 
receives under section 675B of the Community Services Block Grant Act 
(42 U.S.C. 9906) for that year bears to the amount all States receive 
under that section for that year.
    (e) State Applications.--
            (1) In general.--To be eligible to receive a grant under 
        this section, a State shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            (2) Contents.--At a minimum, the application shall 
        contain--
                    (A) information designating a State agency to carry 
                out the emergency assistance program in the State, 
                which shall be--
                            (i) the State agency specified in the State 
                        plan submitted under section 402 of the Social 
                        Security Act (42 U.S.C. 602); or
                            (ii) the State agency designated under 
                        section 676(a) of the Community Services Block 
                        Grant Act (42 U.S.C. 9908(a)); and
                    (B) information describing the emergency assistance 
                program to be carried out in the State.
    (f) Participation of Indian Tribes.--
            (1) Reservation.--If, with respect to a State, the 
        Secretary--
                    (A) receives a request from the governing body of 
                an Indian tribe or tribal organization in the State 
                that assistance under this section be made directly to 
                the tribe or organization; and
                    (B) determines that the members of the tribe or 
                organization would be better served by means of grants 
                made directly to provide benefits under this section,
        the Secretary shall reserve from amounts that would otherwise 
        be allotted to the State under subsection (d) for the fiscal 
        year the amount determined under paragraph (2).
            (2) Determination of reserved amount.--The Secretary shall 
        reserve from amounts that would otherwise be allotted to the 
        State not less than 100 percent of an amount that bears the 
        same ratio to the State allotment for the fiscal year involved 
        as the population of all eligible Indians for whom a 
        determination has been made under paragraph (1) bears to the 
        population of all individuals in the State who are eligible for 
        assistance through a grant made under this section.
            (3) Awards.--The sums reserved by the Secretary on the 
        basis of a determination made under paragraph (1) shall be made 
        available by grant to the Indian tribe or tribal organization 
        serving the individuals for whom such a determination has been 
        made.
            (4) Plan.--In order for an Indian tribe or tribal 
        organization to be eligible for a grant award for a fiscal year 
        under this section, the tribe or organization shall submit to 
        the Secretary a plan for the fiscal year that meets such 
        criteria as the Secretary may prescribe by regulation.
            (5) Definitions.--For purposes of this subsection--
                    (A) Indian tribe; tribal organization.--The terms 
                ``Indian tribe'' and ``tribal organization'' mean a 
                tribe, band, or other organized group recognized in the 
                State in which the tribe, band, or group resides, or 
                considered by the Secretary of the Interior, to be an 
                Indian tribe or an Indian organization for any purpose.
                    (B) Indian.--The term ``Indian'' means a member of 
                an Indian tribe or of a tribal organization.
    (g) Eligible Households.--
            (1) In general.--To be eligible to receive a payment from a 
        State under this section, a household shall submit an 
        application to the State at such time, in such manner, and 
        containing such information as the State may require.
            (2) Contents.--The applicant shall include in the 
        application information demonstrating that--
                    (A) in the case of a household that is not located 
                in Hawaii, 1 or more individuals in the applicant's 
                household individually drive not less than 30 miles per 
                day, or not less than 150 miles per week, to or from 
                covered activities; and
                    (B)(i) the household meets the eligibility 
                requirements of section 2605(b)(2)(A) of the Low-Income 
                Home Energy Assistance Act of 1981 (42 U.S.C. 
                8624(b)(2)(A)), other than clause (i) of that section; 
                or
                    (ii) the household income for the household does 
                not exceed the greater of--
                            (I) an amount equal to 150 percent of the 
                        poverty level for the State involved; or
                            (II) an amount equal to 60 percent of the 
                        State median income.
            (3) Rule.--For purposes of paragraph (2)(B)(ii), a State--
                    (A) may not exclude a household from eligibility 
                for a fiscal year solely on the basis of household 
                income if such income is less than 110 percent of the 
                poverty level for such State; but
                    (B) may give priority to those households with the 
                highest gasoline costs or needs in relation to 
                household income.
    (h) Program Requirements.--
            (1) Determination of trigger amount.--
                    (A) Determination of gasoline.--The Secretary of 
                Health and Human Services, in consultation with the 
                Secretary of Energy, shall determine a grade of 
                gasoline for which price determinations will be made 
                under this subsection, which shall be a type of 
                gasoline that has a specified octane rating or other 
                specified characteristic.
                    (B) Determination of calculation.--The Secretary of 
                Health and Human Services, in consultation with the 
                Secretary of Energy, shall determine a method for 
                calculating the average per gallon price of the covered 
                grade of gasoline in each State.
                    (C) Baseline.--The Secretary of Health and Human 
                Services, in consultation with the Secretary of Energy, 
                shall calculate, in accordance with subparagraph (B), 
                the average per gallon price of the covered grade of 
                gasoline in each State for January 2005.
                    (D) Trigger and release prices.--The Secretary of 
                Health and Human Services, in consultation with the 
                Secretary of Energy, shall calculate--
                            (i) the trigger price for each State by 
                        multiplying the price calculated under 
                        subparagraph (C) by 115 percent; and
                            (ii) the release price for each State by 
                        multiplying the price calculated under 
                        subparagraph (C) by 110 percent.
            (2) Payments.--
                    (A) Availability.--
                            (i) Monthly price calculation.--The 
                        Secretary of Health and Human Services, in 
                        consultation with the Secretary of Energy, 
                        shall calculate, in accordance with paragraph 
                        (1)(B), the average per gallon price of the 
                        covered grade of gasoline in each State for 
                        each month.
                            (ii) Determination.--If the Secretary of 
                        Health and Human Services, in consultation with 
                        the Secretary of Energy, determines that the 
                        price in a State calculated under paragraph 
                        (1)(B) for a month--
                                    (I) is more than the trigger price 
                                for the State, the State shall provide 
                                payments in accordance with this 
                                subsection for the following month; and
                                    (II) is less than the release price 
                                for the State, the State shall suspend 
                                provision of the payments, not earlier 
                                than 30 days after the date of the 
                                determination, for the following month.
                    (B) General authority.--Except as provided in 
                paragraph (3), the State shall use funds received 
                through a grant made under subsection (c)(including a 
                grant increased pursuant to subsection (j)) and any 
                funds made available to the State under section 
                404(d)(4) of the Social Security Act (42 U.S.C. 
                604(d)(4)) to make payments under this Act to eligible 
                households.
                    (C) Period.--An eligible household with an 
                application approved under subsection (e) may receive 
                payments under this Act for not more than 3 months. The 
                household may submit additional applications under 
                subsection (e), and may receive payments under this Act 
                for not more than 3 months for each such application 
                approved by the State.
                    (D) Amount.--The State shall make the payments in 
                amounts of not less than $25, and not more than $75, 
                per month. The State may determine the amount of the 
                payments on a sliding scale, taking into consideration 
                the household income of the eligible households.
            (3) State administration.--The State may use not more than 
        10 percent of the funds described in paragraph (2)(B) to pay 
        for the cost of administering this Act.
            (4) Definitions.--For purposes of this subsection:
                    (A) Covered grade.--The term ``covered grade'' 
                means the grade of gasoline determined under paragraph 
                (1)(A).
                    (B) Release price.--The term ``release price'' 
                means the release price calculated under paragraph 
                (1)(D)(ii).
                    (C) Trigger price.--The term ``trigger price'' 
                means the trigger price calculated under paragraph 
                (1)(D)(i).
    (i) Treatment of Benefits.--
            (1) Income or resources.--Notwithstanding any other law, 
        the value of any payment provided under this section shall not 
        be treated as income or resources for purposes of--
                    (A) any other Federal or federally assisted program 
                that bases eligibility, or the amount of benefits, on 
                need; or
                    (B) the Internal Revenue Code of 1986.
            (2) TANF assistance.--For purposes of part A of title IV of 
        the Social Security Act (42 U.S.C. 601 et seq.), a payment 
        provided under this section shall not be considered to be 
        assistance provided by a State under that part, regardless of 
        whether the State uses funds made available under section 
        404(d)(4) of the Social Security Act (42 U.S.C. 604(d)(4)) to 
        make payments under this Act. The period for which such 
        payments are provided under this section shall not be 
        considered to be part of the 60-month period described in 
        section 408(a)(7) of the Social Security Act (42 U.S.C. 
        608(a)(7)).
    (j) Authority to Use Funds for Temporary Assistance for Needy 
Families.--Section 404(d) of the Social Security Act (42 U.S.C. 604(d)) 
is amended--
            (1) in paragraph (3)(A), by striking ``paragraph (1)'' and 
        inserting ``paragraph (1) or (4)''; and
            (2) by adding at the end the following:
            ``(4) Other state programs.--A State may use funds from any 
        grant made to the State under section 403(a) for a fiscal year 
        to carry out a State program pursuant to the Low-Income 
        Gasoline Assistance Program Act.''.
    (k) Discretionary Activities by the Secretary.--The Secretary of 
Health and Human Services may reserve not more than 5 percent of the 
funds appropriated under subsection (l) for a fiscal year--
            (1) to pay for the cost of administering this section; and
            (2) to increase the cost of a grant made to a State under 
        subsection (c), in any case in which the Secretary determines 
        that emergency conditions relating to gasoline prices exist in 
        that State.
    (l) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out this section $500,000,000 for fiscal year 2006 and 
        each subsequent fiscal year.
            (2) Availability.--Any sums appropriated under paragraph 
        (1) for a fiscal year shall remain available until the end of 
        the succeeding fiscal year.
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