A bill to amend the Internal Revenue Code of 1986 to provide a refundable tax credit for residential energy cost assistance and for other purposes.

Summary: Low-Income Home Energy Security Tax Act - Amends the Internal Revenue Code to: (1) allow certain low-income individuals a refundable tax credit for residential energy costs; (2) provide for advance payments of such credit to providers of residential energy; and (3) require providers of residential energy to file informational returns for any advance tax credit payments received.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Low-Income Home Energy Security Tax 
Act''.

SEC. 2. 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 an individual, there shall be 
allowed as a credit against the tax imposed by this subtitle for the 
taxable year an amount equal to the lesser of--
            ``(1) 33 percent of the amount paid or incurred for 
        residential energy costs by the taxpayer for each month such 
        individual is an individual during such taxable year, or
            ``(2) $300.
    ``(b) Income Limitation.--
            ``(1) In general.--The amount allowable as a credit under 
        subsection (a) for any taxable year (determined without regard 
        to subsection (e)) shall be reduced (but not below zero) by an 
        amount which bears the same ratio to the amount so allowable 
        (determined without regard to this paragraph) as--
                    ``(A) the amount (if any) by which the taxpayer's 
                adjusted gross income exceeds $35,000 ($70,000 in the 
                case of a joint return), bears to
                    ``(B) $10,000.
            ``(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, with respect to any principal residence of 
        the taxpayer located in the United States for any month, the 
        sum of--
                    ``(A) the cost of any energy utility, plus
                    ``(B) the cost of the purchase of any home energy 
                fuel.
            ``(2) Reduction for grants.--The amount of residential 
        energy costs which may be taken into account with respect to 
        any month shall be reduced by any amount received by the 
        taxpayer for such month 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) 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 residential energy cost so incurred.
    ``(d) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2005, each of the dollar amounts contained in 
        subsections (a)(2) and (b)(1)(A) shall be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) in the case of--
                            ``(i) the dollar amount contained in 
                        subsection (a)(2), the fuel price inflation 
                        adjustment for the calendar year in which the 
                        taxable year begins, and
                            ``(ii) the dollar amounts contained in 
                        subsection (b)(1)(A), the cost-of-living 
                        adjustment determined under section 1(f)(3) for 
                        the calendar year in which the taxable year 
                        begins by substituting `calendar year 2004' for 
                        `calendar year 1992' in subparagraph (B) 
                        thereof.
            ``(2) Fuel price inflation adjustment.--For purposes of 
        paragraph (1)(B)(i)--
                    ``(A) In general.--The fuel price inflation 
                adjustment for any calendar year is the percentage (if 
                any) by which--
                            ``(i) the CPI fuel component for October of 
                        the preceding calendar year, exceeds
                            ``(ii) the CPI fuel component for October 
                        of 2004.
                    ``(B) CPI fuel component.--The term `CPI fuel 
                component' means the fuel component of the Consumer 
                Price Index for All Urban Consumers published by the 
                Department of Labor.
            ``(3) Rounding.--
                    ``(A) Credit amount.--If the dollar amount in 
                subsection (a)(2) (after being increased under 
                paragraph (1)), is not a multiple of $10, such dollar 
                amount shall be rounded to the nearest multiple of $10.
                    ``(B) Income threshold.--If any dollar amount in 
                subsection (b)(1)(A) (after being increased under 
                paragraph (1)), is not a multiple of $50, such dollar 
                amount shall be rounded to the next lowest multiple of 
                $50.
    ``(e) Coordination With Advance Payments of Credit.--With respect 
to any taxable year, the amount which would (but for this subsection) 
be allowed as a credit to the taxpayer under subsection (a) shall be 
reduced (but not below zero) by the aggregate amount paid on behalf of 
such taxpayer under section 7529 for months beginning in such taxable 
year.
    ``(f) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section, section 6050U, and section 7529.
    ``(g) Applicability of Section.--This section shall apply to 
residential energy costs paid or incurred after the date of the 
enactment of this section, in taxable years ending after such date and 
before January 1, 2008.''.
    (b) Advance Payment of Credit.--Chapter 77 of the Internal Revenue 
Code of 1986 (relating to miscellaneous provisions) is amended by 
adding at the end the following new section:

``SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR RESIDENTIAL ENERGY COSTS.

    ``(a) General Rule.--The Secretary shall establish a program for 
making payments on behalf of certified individuals to providers of 
residential energy (within the meaning of section 36(c)(1)) for such 
individuals.
    ``(b) Limitation on Advance Payments During Any Taxable Year.--The 
Secretary may make payments under subsection (a) only to the extent 
that the total amount of such payments made on behalf of any individual 
during the taxable year does not exceed the amount of the credit 
allowable to such individual under section 36 for the taxable year.
    ``(c) Certified Individual.--For purposes of this section, the term 
`certified individual' means any individual for whom a qualified 
residential energy costs credit eligibility certificate is in effect.
    ``(d) Qualified Residential Energy Costs Credit Eligibility 
Certificate.--For purposes of this section, the term `qualified 
residential energy costs credit eligibility certificate' means any 
written statement if such statement provides such information as the 
Secretary may require for purposes of this section and is certified by 
the Low-Income Home Energy Assistance program official of the State in 
which such individual resides.''.
    (c) Information Returns.--Subpart B of part III of subchapter A of 
chapter 61 of the Internal Revenue Code of 1986 (relating to 
information concerning transactions with other persons) is amended by 
adding at the end the following new section:

``SEC. 6050U. RETURNS RELATING TO CREDIT FOR RESIDENTIAL ENERGY COSTS.

    ``(a) Requirement of Reporting.--Every person who is entitled to 
receive payments for any month of any calendar year under section 7529 
(relating to advance payment of credit for residential energy costs) 
with respect to any certified individual (as defined in section 
7529(c)) shall, at such time as the Secretary may prescribe, make the 
return described in subsection (b) with respect to each such 
individual.
    ``(b) Form and Manner of Returns.--A return is described in this 
subsection if such return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains--
                    ``(A) the name, address, and TIN of each individual 
                referred to in subsection (a),
                    ``(B) the number of months for which amounts were 
                entitled to be received with respect to such individual 
                under section 7529 (relating to advance payment of 
                credit for residential energy costs),
            ``(3) the amount entitled to be received for each such 
        month, and
            ``(4) such other information as the Secretary may 
        prescribe.
    ``(c) Statements to Be Furnished to Individuals With Respect to 
Whom Information Is Required.--Every person required to make a return 
under subsection (a) shall furnish to each individual whose name is 
required to be set forth in such return a written statement showing--
            ``(1) the name and address of the person required to make 
        such return and the phone number of the information contact for 
        such person, and
            ``(2) the information required to be shown on the return 
        with respect to such individual.
The written statement required under the preceding sentence shall be 
furnished on or before January 31 of the year following the calendar 
year for which the return under subsection (a) is required to be 
made.''.
    (d) 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) Section 6103(l) of the Internal Revenue Code of 1986 is 
        amended by adding at the end the following new paragraph:
            ``(21) Disclosure of return information for purposes of 
        carrying out a program for advance payment of credit for 
        residential energy costs.--The Secretary may disclose to 
        providers of residential energy for any certified individual 
        (as defined in section 7529(c)) return information with respect 
        to such certified individual only to the extent necessary to 
        carry out the program established by section 7529 (relating to 
        advance payment of credit for residential energy costs).''.
    (e) Clerical Amendments.--
            (1) 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.''.
            (2) The table of sections for chapter 77 of such Code is 
        amended by adding at the end the following new item:

        ``Sec. 7529. Advance payment of credit for residential energy 
                            costs.''.
            (3) The table of sections for subpart B of part III of 
        subchapter A of chapter 61 of such Code is amended by adding at 
        the end the following new item:

        ``Sec. 6050U. Returns relating to credit for residential energy 
                            costs.''.