To amend the Internal Revenue Code of 1986 to allow long-distance rural commuters a deduction during periods when the local price of gasoline exceeds $3 per gallon.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Commuters Relief Act of 
2007''.

SEC. 2. FINDINGS.

    The Congress hereby finds:
            (1) In 2007, the price of gasoline has risen to record 
        levels in many areas of the United States.
            (2) Rising gas prices present significant challenges to 
        commuters dependent on cars or other automobiles for 
        transportation to and from their places of employment.
            (3) Residents of rural areas are particularly affected by 
        increasing gasoline prices given their limited access to public 
        transportation and longer distances between homes and places of 
        employment.
            (4) The health of economies in many rural areas is 
        particularly susceptible to harm from the increasing price of 
        gasoline.
            (5) The documented incidence of poverty is higher outside 
        of metropolitan areas than within such areas.

SEC. 3. DEDUCTION FOR LONG-DISTANCE RURAL COMMUTERS DURING PERIODS OF 
              HIGH GASOLINE PRICES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. HIGH GASOLINE EXPENSES FOR LONG-DISTANCE RURAL COMMUTERS.

    ``(a) Allowance of Deduction.--In the case of an eligible 
individual, there shall be allowed as a deduction the sum of the 
amounts determined under subsection (b) for each high gasoline price 
month during the taxable year.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of credit determined under 
        this subsection for each high gasoline price month is $100.
            ``(2) Increased credit for carpooling.--The amount of 
        credit determined under paragraph (1) for each high gasoline 
        price month shall be increased by $100 if the eligible 
        individual car pools an average of 4 days per week during the 
        3-month period ending with such month.
            ``(3) Car pool.--An individual car pools on any trip if at 
        least one other individual is in the highway motor vehicle 
        during substantially all of the trip in connection with the 
        employment of such other individual.
    ``(c) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means, 
        with respect to any month, any individual if--
                    ``(A) throughout such month, the distance between 
                the individual's principal place of abode and primary 
                place of employment is more than 30 miles,
                    ``(B) on at least 4 days during each week of such 
                month, such individual commutes between such place of 
                abode and place of employment using a highway motor 
                vehicle--
                            ``(i) which is fueled gasoline or diesel 
                        fuel, and
                            ``(ii) which is registered to such 
                        individual or to another individual as part of 
                        a car pooling arrangement between such 
                        individuals,
                    ``(C) both such places are in rural areas, and
                    ``(D) the family income of the family which 
                includes the taxpayer does not exceed the median family 
                income for the United States.
            ``(2) Rural area.--The term `rural area' means any 
        nonmetropolitan area (as determined by the Office of Management 
        and Budget for census purposes) with a population of not more 
        than 30,000.
    ``(d) High Gasoline Price Month.--For purposes of this section--
            ``(1) In general.--The term `high gasoline price month' 
        means any calendar month during which the average weekly retail 
        price of regular grade gasoline (inclusive of taxes) for 
        applicable PAD District is at least $3 per gallon.
            ``(2) Applicable pad district.--For purposes of paragraph 
        (1), the applicable PAD district is the Petroleum 
        Administration for Defense District which includes most of the 
        distance between the individual's principal place of abode and 
        primary place of employment.
    ``(e) Separate Application to Individuals Filing Joint Returns.--
This section shall be applied separately to individuals filing a joint 
return.''.
    (b) Deduction Allowed Whether or Not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (21) the following new paragraph:
            ``(22) High gasoline expenses for long-distance rural 
        commuters.--The deduction allowed by section 224.''.
    (c) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 224 as inserting the following new items:

``Sec. 224. High gasoline expenses for long-distance rural commuters.
``Sec. 225. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to calendar months beginning after the date of the enactment of 
this Act and to taxable years ending after such date.

Summary: Rural Commuters Relief Act of 2007 - Amends the Internal Revenue Code to allow individual taxpayers who reside in a rural area of not more than 30,000 people a tax deduction for up to $100 of commuting costs in any month in which the cost of gasoline is at least $3 per gallon . Allows an additional $100 deduction amount for carpooling during a high gasoline price month. Allows individual taxpayers to claim such deduction whether or not they itemize their other deductions.