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.

Summary: Weatherization, Assistance, and Relief for Middle-Income Households Act of 2008 or the WARM Act of 2008 - Makes additional appropriations in FY2008 for the Low-Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program for Low-Income Persons.

Amends the Internal Revenue Code to: (1) allow a income-based tax credit for 50% of home heating oil expenditures made on or after June 1, 2008, and before January 1, 2009, up to $1,000 ($2,000 for joint returns); (2) deny major integrated oil companies a tax deduction for income attributable to domestic production, refining, processing, transportation, or distribution of oil, gas, or primary products thereof; and (3) establish a fair market value standard for determining foreign oil and gas extraction income.

SECTION 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''.

SEC. 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)).

SEC. 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.

SEC. 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:

``SEC. 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.''.

SEC. 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.

SEC. 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.