[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2107 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 2107

  To provide additional appropriations for the Low-Income Home Energy 
 Assistance Act of 1981 for fiscal year 2006 and to amend the Internal 
Revenue Code of 1986 to provide a refundable tax credit for residential 
            energy cost assistance, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 15, 2005

  Mr. Baucus introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To provide additional appropriations for the Low-Income Home Energy 
 Assistance Act of 1981 for fiscal year 2006 and to amend the Internal 
Revenue Code of 1986 to provide a refundable tax credit for residential 
            energy cost assistance, 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 ``Household Energy and Taxpayer 
Assistance Act of 2005''.

SEC. 2. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

    In addition to any amounts otherwise appropriated for the program 
authorized under the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.) for fiscal year 2006, there is appropriated, out 
of any money in the Treasury of the United States not otherwise 
appropriated, an additional $2,917,000,000 for fiscal year 2006 for 
such program (other than the program authorized under section 2604(e) 
of such Act (42 U.S.C. 8623(e)).

SEC. 3. REFUNDABLE TAX CREDIT FOR RESIDENTIAL ENERGY COST ASSISTANCE.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. CREDIT FOR RESIDENTIAL ENERGY COST ASSISTANCE.

    ``(a) General Rule.--In the case of any individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for the 
taxable year an amount equal to 20 percent of the qualified residential 
energy costs of the taxpayer during such taxable year.
    ``(b) Lifetime Limitation.--The credit allowed under this section 
with respect to any taxpayer for any taxable year shall not exceed the 
excess (if any) of $200 ($300 in the case of a joint return) over the 
aggregate credits allowed under this section with respect to such 
taxpayer for all prior taxable years.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Residential energy costs.--The term `qualified 
        residential energy costs' means, with respect to any principal 
        residence of the taxpayer located in the United States, the 
        costs paid or incurred by the taxpayer for the period beginning 
        after September 31, 2005, and ending before October 1, 2006, 
        for any energy utility and home energy fuel.
            ``(2) Reduction for grants.--The amount of qualified 
        residential energy costs which may be taken into account with 
        respect to such period shall be reduced by any amount received 
        by the taxpayer during such period for any residential energy 
        cost under the Low-Income Home Energy Assistance program under 
        title XXVI of the Omnibus Budget Reconciliation Act of 1981 (42 
        U.S.C. 8621 et seq.).
            ``(3) Principal residence.--The term `principal residence' 
        has the same meaning as in section 121, except that--
                    ``(A) no ownership requirement shall be imposed, 
                and
                    ``(B) the principal residence must be used by the 
                taxpayer as the taxpayer's residence during the taxable 
                year.
            ``(4) Certain persons not eligible.--This section shall not 
        apply to 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 such individual's 
        taxable year begins.
            ``(5) Homeowners associations.--The application of this 
        section to homeowners associations (as defined in section 
        528(c)(1)) or members of such associations, and tenant-
        stockholders in cooperative housing corporations (as defined in 
        section 216), shall be allowed by allocation, apportionment, or 
        otherwise, to the individuals paying, directly or indirectly, 
        for the qualified residential energy cost so incurred.
    ``(d) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section.''.
    (b) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by striking ``or'' before ``enacted'' and by inserting 
        before the period at the end ``, or from section 36 of such 
        Code''.
            (2) 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 striking the item relating to section 35 and by 
        adding at the end the following new items:

        ``Sec. 36. Credit for residential energy cost assistance.
        ``Sec. 37. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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