II
109th CONGRESS
1st Session
S. 2107
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.
Short title
This Act may be cited as the
Household Energy and Taxpayer
Assistance Act of 2005
.
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)).
Refundable tax credit for residential energy cost assistance
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:
Credit for residential energy cost assistance
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.
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.
Definitions and special rules
For purposes of this section—
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.
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.).
Principal residence
The term principal residence has the same meaning as in section 121, except that—
no ownership requirement shall be imposed, and
the principal residence must be used by the taxpayer as the taxpayer’s residence during the taxable year.
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.
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.
Regulations
The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section.
.
Conforming amendments
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
.
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.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2004.