[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5691 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5691

 To amend the Internal Revenue Code of 1986 to allow an above-the-line 
    deduction for State and local real property taxes on principal 
residences of taxpayers who elect not to deduct State and local income 
and general sales taxes, a refundable credit for the increased cost in 
    2008 of heating oil used to heat the principal residence of the 
    taxpayer, and to increase and make permanent the deduction for 
                qualified tuition and related expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2008

 Ms. Shea-Porter introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow an above-the-line 
    deduction for State and local real property taxes on principal 
residences of taxpayers who elect not to deduct State and local income 
and general sales taxes, a refundable credit for the increased cost in 
    2008 of heating oil used to heat the principal residence of the 
    taxpayer, and to increase and make permanent the deduction for 
                qualified tuition and related expenses.

    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 ``Middle Class Assistance Act of 
2008''.

SEC. 2. ABOVE-THE-LINE DEDUCTION FOR STATE AND LOCAL REAL PROPERTY 
              TAXES ON PRINCIPAL RESIDENCES OF TAXPAYERS WHO ELECT NOT 
              TO DEDUCT STATE AND LOCAL INCOME AND GENERAL SALES TAXES.

    (a) In General.--Subsection (a) of section 62 of the Internal 
Revenue Code of 1986 (defining adjusted gross income) is amended by 
inserting after paragraph (21) the following new paragraph:
            ``(22) Deduction for state and local real property taxes on 
        principal residences of taxpayers who do not deduct state and 
        local income and general sales taxes.--
                    ``(A) In general.--In the case of an eligible 
                individual, the deduction allowed by section 164 for 
                State and local real property taxes to the extent such 
                taxes are attributable to--
                            ``(i) property located in the United 
                        States, and
                            ``(ii) for a period that such individual 
                        (or such individual's spouse) owned and used 
                        the property as their principal residence 
                        (within the meaning of section 121).
                    ``(B) Eligible individual.--For purposes of 
                subparagraph (A), the term `eligible individual' means 
                any taxpayer who elects for the taxable year to apply 
                section 164 without regard to--
                            ``(i) the reference to State and local 
                        income taxes in section 164(a), and
                            ``(ii) the election under section 164(b)(5) 
                        (relating to election to deduct State and local 
                        sales taxes in lieu of State and local income 
                        taxes).''.
    (b) No Affect on Amt.--Subparagraph (A) of section 56(b)(1) of such 
Code is amended by adding at the end the following new sentence: 
``Section 62(a)(22) shall not apply for purposes of the preceding 
sentence.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 3. REFUNDABLE CREDIT FOR INCREASED 2008 HOME HEATING OIL COSTS.

    (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. REFUNDABLE CREDIT FOR INCREASED 2008 HOME HEATING OIL 
              COSTS.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by subtitle A for 
the first taxable year of the taxpayer ending on or after December 31, 
2008, an amount equal to the taxpayer's increased 2008 home heating oil 
costs.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by this section 
        for the taxable year shall not exceed $500.
            ``(2) Limitation based on adjusted gross income.--The 
        dollar amount applicable under paragraph (1) (determined after 
        the application of subsection (e)(2)) shall be reduced (but not 
        below zero) by the amount which bears the same ratio to such 
        applicable dollar amount (as so determined) as the excess of 
        the taxpayer's adjusted gross income over $200,000 bears to 
        $10,000.
    ``(c) Eligible Individual.--
            ``(1) In general.--For purposes of this section, the term 
        `eligible individual' means any individual whose principal 
        residence is located in the United States.
            ``(2) Exception.--Such term shall not include--
                    ``(A) any nonresident alien individual, and
                    ``(B) 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.
    ``(d) Increased 2008 Heating Oil Costs.--For purposes of this 
section--
            ``(1) In general.--The term `increased 2008 heating oil 
        costs' means the excess (if any) of--
                    ``(A) the amount paid by the taxpayer for heating 
                oil used to provide space heating for the principal 
                residence of the taxpayer during 2007, over
                    ``(B) the amount paid by the taxpayer for heating 
                oil used to provide space heating for such residence 
                during 2008.
            ``(2) Use as principal residence for less than entire 
        year.--If the principal residence of an individual is not the 
        same throughout 2007 and 2008, the limitation applicable to 
        such individual under subsection (b) shall be the amount equal 
        to--
                    ``(A) such limitation (determined without regard to 
                this paragraph), multiplied by
                    ``(B) the smaller of--
                            ``(i) the fraction of 2007 (determined on a 
                        daily basis) that such residence was the 
                        principal residence of the individual, or
                            ``(ii) the fraction of 2008 (as so 
                        determined) that such residence was the 
                        principal residence of the individual.
            ``(3) Renters.--In the case of an individual who occupies a 
        unit in a building as a tenant, such individual shall be 
        treated as paying the individual's allocable share (determined 
        as provided by the Secretary) of the heating oil used to 
        provide space heating for such building.
            ``(4) Heating oil not used throughout period.--If 
        substantially all of the space heating for a residence is not 
        provided by heating oil consumed at such residence throughout 
        2007 and 2008, the application of this section shall be 
        determined under regulations prescribed by the Secretary.
    ``(e) Special Rules.--
            ``(1) Denial of double benefit.--No deduction shall be 
        allowed for the amount described in subsection (d)(1)(B) 
        (otherwise allowable as a deduction for the taxable year) which 
        is equal to the amount of the credit determined for such 
        taxable year under this section.
            ``(2) Dollar amount in case of joint occupancy.--In the 
        case of a dwelling unit which is the principal residence by 2 
        or more individuals, the dollar limitation under subsection 
        (b)(1) shall be allocated among such individuals in proportion 
        to their respective payments of the 2008 heating oil costs.
            ``(3) Certain other rules to apply.--Rules similar to the 
        rules of paragraphs (5), (6), and (7) of section 25D(e) shall 
        apply for purposes of this section.
    ``(f) Principal Residence.--For purposes of this section, the term 
`principal residence' has the meaning given to such term by section 
121; except that no ownership requirement shall be imposed.
    ``(g) 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).''.
    (b) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or 6431'' after 
        ``section 35''.
            (2) The table of sections for chapter 65 of such Code is 
        amended by adding at the end the following new item:

``Sec. 6431. Refundable credit for increased 2008 home heating oil 
                            costs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 4. DEDUCTION FOR TUITION AND RELATED EXPENSES INCREASED AND MADE 
              PERMANENT.

    (a) Deduction Made Permanent.--Section 222 of the Internal Revenue 
Code of 1986 (relating to qualified tuition and related expenses) is 
amended by striking subsection (e).
    (b) Deduction Increased.--Subsection (b) section 222 of such Code 
is amended to read as follows:
    ``(b) Dollar Limitations.--
            ``(1) Joint returns.--The expenses of each student which 
        may be taken into account under this section for any taxable 
        year shall not exceed the applicable limit determined in 
        accordance with the following table:

                                                         The applicable
``If adjusted gross income--                                 limit is--
        Does not exceed $130,000.....................           $6,000 
        Exceeds $130,000 but does not exceed $160,000           $3,000 
        Exceeds $160,000 but does not exceed $200,000           $1,500 
        Exceeds $200,000.............................                0.
            ``(2) Other taxpayers.--In the case of taxpayers not filing 
        a joint return, the table contained in paragraph (1) shall be 
        applied by substituting amounts of adjusted gross income which 
        are \1/2\ of the amounts contained therein.
            ``(3) Adjusted gross income.--For purposes of this 
        subsection, adjusted gross income shall be determined--
                    ``(A) without regard to this section and sections 
                199, 911, 931, and 933, and
                    ``(B) after application of sections 86, 135, 137, 
                219, 221, and 469.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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