I 

109TH CONGRESS 

1ST SESSION H. R. 2893 

To amend the Internal Revenue Code of 1986 to allow a nonrefundable 

credit against income tax liability for gasoline and diesel fuel used in 

highway vehicles for nonbusiness purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 14, 2005 

Mr. HASTINGS of Florida (for himself, Mr. HINCHEY, and Mr. MOORE of 

Kansas) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow a 

nonrefundable credit against income tax liability for gasoline and diesel fuel used in highway vehicles for nonbusiness purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Working Families Gas 

5 Tax Credit Act of 2005’’. 
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1 SEC. 2. CREDIT FOR GASOLINE AND DIESEL FUEL USED IN 

2 HIGHWAY VEHICLES FOR NONBUSINESS PUR3 POSES. 

4 (a) IN GENERAL.—Subpart A of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to nonrefundable personal credits) is 

7 amended by adding after section 25B the following new 

8 section: 

9 ‘‘SEC. 25C. CREDIT FOR GASOLINE AND DIESEL FUEL USED 

10 IN HIGHWAY VEHICLES FOR NONBUSINESS 

11 PURPOSES. 

12 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in13 dividual, there shall be allowed as a credit against the tax 

14 imposed by this chapter for the taxable year an amount 

15 equal to the aggregate qualified taxable fuel expenditures 

16 made by the taxpayer during such year. 

17 ‘‘(b) LIMITATION.—The credit allowed under sub18 section (a) for a taxable year shall not exceed $250 ($500 

19 in the case of a joint return). 

20 ‘‘(c) QUALIFIED TAXABLE FUEL EXPENDITURES.— 

21 For purposes of this section— 

22 ‘‘(1) IN GENERAL.—The term ‘qualified taxable 

23 fuel expenditures’ means amounts paid for a taxable 

24 fuel (as defined by section 4083(a) (without regard 

25 to paragraph (1)(C) thereof) for a nonbusiness use 

26 in a highway vehicle. 
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1 ‘‘(2) EXCEPTION.—Such term does not include 

2 amounts paid for any fuel with respect to which a 

3 credit is allowed under section 34 or a refund al4 lowed under section 6420, 6421, or 6427. 

5 ‘‘(d) LIMITATION BASED ON MODIFIED ADJUSTED

6 GROSS INCOME.— 

7 ‘‘(1) IN GENERAL.—The amount which would 

8 (but for this subsection) be taken into account under 

9 subsection (a) for the taxable year shall be reduced 

10 (but not below zero) by the amount determined 

11 under paragraph (2). 

12 ‘‘(2) AMOUNT OF REDUCTION.—The amount 

13 determined under this paragraph is the amount 

14 which bears the same ratio to the amount which 

15 would be so taken into account as— 

16 ‘‘(A) the excess of— 

17 ‘‘(i) the taxpayer’s modified adjusted 

18 gross income for such taxable year, over 

19 ‘‘(ii) $25,000 ($50,000 in the case of 

20 a joint return), bears to 

21 ‘‘(B) $2,500 ($5,000 in the case of a joint 

22 return). 

23 ‘‘(3) MODIFIED ADJUSTED GROSS INCOME.— 

24 The term ‘modified adjusted gross income’ means 

25 the adjusted gross income of the taxpayer for the 
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1 taxable year increased by any amount excluded from 

2 gross income under section 911, 931, or 933. 

3 ‘‘(e) RATE OF INCREASE IN PRICE OF A GALLON OF

4 GASOLINE MUST EXCEED RATE OF INFLATION BY NOT

5 LESS THAN 200 PERCENT.— 

6 ‘‘(1) GENERAL RULE.—Subsection (a) shall not 

7 apply for any taxable year unless the Secretary de8 termines that the percentage change in the price of 

9 a gallon of gasoline for the taxable year is not less 

10 than 200 percent of the change in the inflation rate 

11 for such taxable year. 

12 ‘‘(2) PERCENTAGE CHANGE IN THE PRICE OF A

13 GALLON OF GASOLINE.—For purposes of paragraph 

14 (1), the percentage change in the price of a gallon 

15 of gasoline for a taxable year is the percentage (if 

16 any) by which— 

17 ‘‘(A) the average price of a gallon of gaso18 line as of the close of the taxable year, exceeds 

19 ‘‘(B) the average price of a gallon gasoline 

20 as of the beginning of the taxable year. 

21 ‘‘(3) INFLATION RATE.—For purposes of para22 graph (1), the inflation rate for the determination 

23 period is the percentage (if any) by which— 
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1 ‘‘(A) the average of the Consumer Price 

2 Index as of the close of the taxable year, ex3 ceeds 

4 ‘‘(B) the average of the Consumer Price 

5 Index as of the beginning of the taxable year. 

6 ‘‘(4) PRICE OF A GALLON OF GASOLINE.—For 

7 purposes of this subsection, the price of a gallon of 

8 gasoline shall be as determined under the U.S. Reg9 ular All Formulations Retail Gasoline Prices by the 

10 Energy Information Administration of the Depart11 ment of Energy. 

12 ‘‘(5) CONSUMER PRICE INDEX.—For the pur13 poses of this subsection, the term ‘Consumer Price 

14 Index’ means the last Consumer Price Index for all15 urban consumers published by the Department of 

16 Labor. For purposes of the preceding sentence, the 

17 revision of the Consumer Price Index which is most 

18 consistent with the Consumer Price Index for cal19 endar year 1986 shall be used. 

20 ‘‘(f) ADJUSTMENTS FOR INFLATION.—In the case of 

21 a taxable year beginning after December 31, 2005, each 

22 of the dollar amounts in subsection (b) and subsection 

23 (d)(2)(A)(ii) shall be increased by an amount equal to— 

24 ‘‘(1) such dollar amount, multiplied by 
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1 ‘‘(2) the cost-of-living adjustment determined 

2 under section 1(f)(3) for the calendar year in which 

3 the taxable year begins, determined by substituting 

4 ‘calendar year 2004’ for ‘calendar year 1992’ in sub5 paragraph (B) thereof. If any amount as increased 

6 under the preceding sentence is not a multiple of 

7 $50, such amount shall be rounded to the nearest 

8 multiple of $50. 

9 If, in the case of any amount in subsection (b) as in10 creased under the preceding sentence, is not a multiple 

11 of $10, such amount shall be rounded to the nearest mul12 tiple of $10, and if, in the case of any amount in sub13 section (d) as increased under the preceding sentence, is 

14 not a multiple of $100, such amount shall be rounded to 

15 the nearest multiple of $100. 

16 ‘‘(g) GUIDANCE.—Not later than January 31 of each 

17 year, the Secretary shall promulgate such guidance as may 

18 be necessary or appropriate to carry out the provisions of 

19 this section with respect to the preceding taxable year.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for subpart A of such part IV is amended by inserting 

22 after the item relating to section 25B the following new 

23 item: 

‘‘Sec. 25C. Credit for gasoline and diesel fuel used in highway vehicles for nonbusiness purposes.’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2004. 

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