II 110th CONGRESS 2d Session S. 3323 IN THE SENATE OF THE UNITED STATES July 24 (legislative day, July 23), 2008 Mr. Gregg (for himself and Mr. Sununu) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide weatherization and home heating assistance to low income households, and to provide a heating oil tax credit for middle income households.

1.

Short title

This Act may be cited as the Weatherization, Assistance, and Relief for Middle-Income Households Act of 2008 or the WARM Act of 2008.

2.

Low-income home energy assistance appropriations

In addition to any amounts appropriated under any other provision of Federal law, there is appropriated, out of any money in the Treasury not otherwise appropriated, for fiscal year 2008— (1)$1,265,000,000 (to remain available until expended) for making payments under subsections (a) through (d) of section 2604 of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623); and (2)$1,265,000,000 (to remain available until expended) for making payments under section 2604(e) of the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), notwithstanding the designation requirement of section 2602(e) of such Act (42 U.S.C. 8621(e)).

3.

Weatherization Assistance Program for Low-Income Persons

In addition to any amounts appropriated under any other provision of Federal law, there is appropriated, out of any money in the Treasury not otherwise appropriated, for fiscal year 2008 $523,000,000 to carry out the Weatherization Assistance Program for Low-Income Persons established under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.), to remain available until expended.

4.

Credit for home heating oil expenditures

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:

25E.

Home heating oil expenditures

(a)

Allowance of credit

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 50 percent of the qualified home heating oil expenditures made by the taxpayer during such taxable year. (b)

Limitations

(1)

Maximum credit

The credit allowed under subsection (a) for any taxable year shall not exceed $1,000 ($2,000 in the case of a joint return). (2)

Limitation based on adjusted gross income

The amount which would (but for this paragraph) be taken into account under subsection (a) for the taxable year shall be reduced (but not below zero) by 10 percent (20 percent in the case of a joint return) of so much of the taxpayer's adjusted gross income as exceeds $60,000 ($90,000 in the case of a joint return). (c)

Qualified home heating oil expenditures

For purposes of this section, the term qualified home heating oil expenditures means any expenditures for the purchase of heating oil that— (1)are made for the purpose of heating a dwelling unit or heating water for use in a dwelling unit located in the United States and used as a residence by the taxpayer, and (2)are made on or after June 1, 2008, and before January 1, 2009.

. (b)

Conforming amendments

(1)Section 24(b)(3)(B) of the Internal Revenue Code of 1986 is amended by striking and 25B and inserting , 25B, and 25E. (2)Section 25(e)(1)(C)(ii) of such Code is amended by inserting 25E, after 25D,. (3)Section 25B(g)(2) of such Code is amended by striking section 23 and inserting sections 23 and 25E. (4)Section 25D(c)(2) of such Code is amended by striking and 25B and inserting 25B, and 25E. (5)Section 26(a)(1) of such Code is amended by striking and 25B and inserting 25B, and 25E. (6)Section 904(i) of such Code is amended by striking and 25B and inserting 25B, and 25E. (7)Section 1400C(d)(2) of such Code is amended by striking and 25D and inserting 25D, and 25E. (c)

Clerical amendment

The table of sections for subpart A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Home heating oil expenditures. .

5.

Denial of deduction for major integrated oil companies for income attributable to domestic production of oil, gas, or primary products thereof

(a)

In general

Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 (relating to exceptions) is amended by striking or at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , or, and by inserting after clause (iii) the following new clause: (iv)in the case of any major integrated oil company (as defined in section 167(h)(5)(B)), the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof during any taxable year described in section 167(h)(5)(B). . (b)

Primary product

Section 199(c)(4)(B) of such Code is amended by adding at the end the following flush sentence: For purposes of clause (iv), the term primary product has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

6.

Clarification of determination of foreign oil and gas extraction income

(a)

In general

Paragraph (1) of section 907(c) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (B) as subparagraph (C), by striking or at the end of subparagraph (A), and by inserting after subparagraph (A) the following new subparagraph: (B)so much of any transportation of such minerals as occurs before the fair market value event, or . (b)

Fair market value event

Subsection (c) of section 907 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (6)

Fair market value event

For purposes of this section, the term fair market value event means, with respect to any mineral, the first point in time at which such mineral— (A)has a fair market value which can be determined on the basis of a transfer, which is an arm’s length transaction, of such mineral from the taxpayer to a person who is not related (within the meaning of section 482) to such taxpayer, or (B)is at a location at which the fair market value is readily ascertainable by reason of transactions among unrelated third parties with respect to the same mineral (taking into account source, location, quality, and chemical composition). . (c)

Special rule for certain petroleum taxes

Subsection (c) of section 907 of the Internal Revenue Code of 1986, as amended by subsection (b), is amended by adding at the end the following new paragraph: (7)

Oil and gas taxes

In the case of any tax imposed by a foreign country which is limited in its application to taxpayers engaged in oil or gas activities— (A)the term oil and gas extraction taxes shall include such tax, (B)the term foreign oil and gas extraction income shall include any taxable income which is taken into account in determining such tax (or is directly attributable to the activity to which such tax relates), and (C)the term foreign oil related income shall not include any taxable income which is treated as foreign oil and gas extraction income under subparagraph (B). . (d)

Conforming amendments

(1)Subparagraph (C) of section 907(c)(1) of the Internal Revenue Code of 1986, as redesignated by this section, is amended by inserting or used by the taxpayer in the activity described in subparagraph (B) before the period at the end. (2)Subparagraph (B) of section 907(c)(2) of such Code is amended to read as follows: (B)so much of the transportation of such minerals or primary products as is not taken into account under paragraph (1)(B), . (e)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.