[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6804 Introduced in House (IH)]







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).
    ``(b) Income Limitation.--
            ``(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--
            ``(1) gasoline,
            ``(2) diesel fuel,
            ``(3) heating oil,
            ``(4) propane, and
            ``(5) natural gas.
    ``(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''.
    (e) Effective Date.--
            (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).''.
                                 <all>