II 

110TH CONGRESS 

2D SESSION S. 3323 

To provide weatherization and home heating assistance to low income households, and to provide a heating oil tax credit for middle income households. 

IN THE SENATE OF THE UNITED STATES 

JULY 24 (legislative day, JULY 23), 2008 

Mr. GREGG (for himself and Mr. SUNUNU) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

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. 

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 ‘‘Weatherization, Assist5 ance, and Relief for Middle-Income Households Act of 

6 2008’’ or the ‘‘WARM Act of 2008’’. 


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1 SEC. 2. LOW-INCOME HOME ENERGY ASSISTANCE APPRO2 PRIATIONS. 

3 In addition to any amounts appropriated under any 

4 other provision of Federal law, there is appropriated, out 

5 of any money in the Treasury not otherwise appropriated, 

6 for fiscal year 2008— 

7 (1) $1,265,000,000 (to remain available until 

8 expended) for making payments under subsections 

9 (a) through (d) of section 2604 of the Low-Income 

10 Home Energy Assistance Act of 1981 (42 U.S.C. 

11 8623); and 

12 (2) $1,265,000,000 (to remain available until 

13 expended) for making payments under section 

14 2604(e) of the Low-Income Home Energy Assist15 ance Act of 1981 (42 U.S.C. 8623(e)), notwith16 standing the designation requirement of section 

17 2602(e) of such Act (42 U.S.C. 8621(e)). 

18 SEC. 3. WEATHERIZATION ASSISTANCE PROGRAM FOR 

19 LOW-INCOME PERSONS. 

20 In addition to any amounts appropriated under any 

21 other provision of Federal law, there is appropriated, out 

22 of any money in the Treasury not otherwise appropriated, 

23 for fiscal year 2008 $523,000,000 to carry out the Weath24 erization Assistance Program for Low-Income Persons es25 tablished under part A of title IV of the Energy ConservaVerDate Aug 31 2005 20:40 Jul 25, 2008 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3323.IS S3323

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1 tion and Production Act (42 U.S.C. 6861 et seq.), to re2 main available until expended. 

3 SEC. 4. CREDIT FOR HOME HEATING OIL EXPENDITURES. 

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 inserting after section 25D the following new 

8 section: 

9 ‘‘SEC. 25E. HOME HEATING OIL EXPENDITURES. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in11 dividual, there shall be allowed as a credit against the tax 

12 imposed by this chapter for the taxable year an amount 

13 equal to 50 percent of the qualified home heating oil ex14 penditures made by the taxpayer during such taxable year. 

15 ‘‘(b) LIMITATIONS.— 

16 ‘‘(1) MAXIMUM CREDIT.—The credit allowed 

17 under subsection (a) for any taxable year shall not 

18 exceed $1,000 ($2,000 in the case of a joint return). 

19 ‘‘(2) LIMITATION BASED ON ADJUSTED GROSS

20 INCOME.—The amount which would (but for this 

21 paragraph) be taken into account under subsection 

22 (a) for the taxable year shall be reduced (but not 

23 below zero) by 10 percent (20 percent in the case of 

24 a joint return) of so much of the taxpayer’s adjusted 


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1 gross income as exceeds $60,000 ($90,000 in the 

2 case of a joint return). 

3 ‘‘(c) QUALIFIED HOME HEATING OIL EXPENDI4 TURES.—For purposes of this section, the term ‘qualified 

5 home heating oil expenditures’ means any expenditures for 

6 the purchase of heating oil that— 

7 ‘‘(1) are made for the purpose of heating a 

8 dwelling unit or heating water for use in a dwelling 

9 unit located in the United States and used as a resi10 dence by the taxpayer, and 

11 ‘‘(2) are made on or after June 1, 2008, and 

12 before January 1, 2009.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 24(b)(3)(B) of the Internal Revenue 

15 Code of 1986 is amended by striking ‘‘and 25B’’ 

16 and inserting ‘‘, 25B, and 25E’’. 

17 (2) Section 25(e)(1)(C)(ii) of such Code is 

18 amended by inserting ‘‘25E,’’ after ‘‘25D,’’. 

19 (3) Section 25B(g)(2) of such Code is amended 

20 by striking ‘‘section 23’’ and inserting ‘‘sections 23 

21 and 25E’’. 

22 (4) Section 25D(c)(2) of such Code is amended 

23 by striking ‘‘and 25B’’ and inserting ‘‘25B, and 

24 25E’’. 


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1 (5) Section 26(a)(1) of such Code is amended 

2 by striking ‘‘and 25B’’ and inserting ‘‘25B, and 

3 25E’’. 

4 (6) Section 904(i) of such Code is amended by 

5 striking ‘‘and 25B’’ and inserting ‘‘25B, and 25E’’. 

6 (7) Section 1400C(d)(2) of such Code is 

7 amended by striking ‘‘and 25D’’ and inserting 

8 ‘‘25D, and 25E’’. 

9 (c) CLERICAL AMENDMENT.—The table of sections 

10 for subpart A of chapter 1 of the Internal Revenue Code 

11 of 1986 is amended by inserting after the item relating 

12 to section 25D the following new item: 

‘‘Sec. 25E. Home heating oil expenditures.’’. 

13 SEC. 5. DENIAL OF DEDUCTION FOR MAJOR INTEGRATED 

14 OIL COMPANIES FOR INCOME ATTRIBUTABLE 

15 TO DOMESTIC PRODUCTION OF OIL, GAS, OR 

16 PRIMARY PRODUCTS THEREOF. 

17 (a) IN GENERAL.—Subparagraph (B) of section 

18 199(c)(4) of the Internal Revenue Code of 1986 (relating 

19 to exceptions) is amended by striking ‘‘or’’ at the end of 

20 clause (ii), by striking the period at the end of clause (iii) 

21 and inserting ‘‘, or’’, and by inserting after clause (iii) the 

22 following new clause: 

23 ‘‘(iv) in the case of any major inte24 grated oil company (as defined in section 

25 167(h)(5)(B)), the production, refining, 


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1 processing, transportation, or distribution 

2 of oil, gas, or any primary product thereof 

3 during any taxable year described in sec4 tion 167(h)(5)(B).’’. 

5 (b) PRIMARY PRODUCT.—Section 199(c)(4)(B) of 

6 such Code is amended by adding at the end the following 

7 flush sentence: 

8 ‘‘For purposes of clause (iv), the term ‘primary 

9 product’ has the same meaning as when used in 

10 section 927(a)(2)(C), as in effect before its re11 peal.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2008. 

15 SEC. 6. CLARIFICATION OF DETERMINATION OF FOREIGN 

16 OIL AND GAS EXTRACTION INCOME. 

17 (a) IN GENERAL.—Paragraph (1) of section 907(c) 

18 of the Internal Revenue Code of 1986 is amended by re19 designating subparagraph (B) as subparagraph (C), by 

20 striking ‘‘or’’ at the end of subparagraph (A), and by in21 serting after subparagraph (A) the following new subpara22 graph: 

23 ‘‘(B) so much of any transportation of 

24 such minerals as occurs before the fair market 

25 value event, or’’. 


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1 (b) FAIR MARKET VALUE EVENT.—Subsection (c) of 

2 section 907 of the Internal Revenue Code of 1986 is 

3 amended by adding at the end the following new para4 graph: 

5 ‘‘(6) FAIR MARKET VALUE EVENT.—For pur6 poses of this section, the term ‘fair market value 

7 event’ means, with respect to any mineral, the first 

8 point in time at which such mineral— 

9 ‘‘(A) has a fair market value which can be 

10 determined on the basis of a transfer, which is 

11 an arm’s length transaction, of such mineral 

12 from the taxpayer to a person who is not re13 lated (within the meaning of section 482) to 

14 such taxpayer, or 

15 ‘‘(B) is at a location at which the fair mar16 ket value is readily ascertainable by reason of 

17 transactions among unrelated third parties with 

18 respect to the same mineral (taking into ac19 count source, location, quality, and chemical 

20 composition).’’. 

21 (c) SPECIAL RULE FOR CERTAIN PETROLEUM

22 TAXES.—Subsection (c) of section 907 of the Internal 

23 Revenue Code of 1986, as amended by subsection (b), is 

24 amended by adding at the end the following new para25 graph: 


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1 ‘‘(7) OIL AND GAS TAXES.—In the case of any 

2 tax imposed by a foreign country which is limited in 

3 its application to taxpayers engaged in oil or gas ac4 tivities— 

5 ‘‘(A) the term ‘oil and gas extraction taxes’ 

6 shall include such tax, 

7 ‘‘(B) the term ‘foreign oil and gas extrac8 tion income’ shall include any taxable income 

9 which is taken into account in determining such 

10 tax (or is directly attributable to the activity to 

11 which such tax relates), and 

12 ‘‘(C) the term ‘foreign oil related income’ 

13 shall not include any taxable income which is 

14 treated as foreign oil and gas extraction income 

15 under subparagraph (B).’’. 

16 (d) CONFORMING AMENDMENTS.— 

17 (1) Subparagraph (C) of section 907(c)(1) of 

18 the Internal Revenue Code of 1986, as redesignated 

19 by this section, is amended by inserting ‘‘or used by 

20 the taxpayer in the activity described in subpara21 graph (B)’’ before the period at the end. 

22 (2) Subparagraph (B) of section 907(c)(2) of 

23 such Code is amended to read as follows: 


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1 ‘‘(B) so much of the transportation of such 

2 minerals or primary products as is not taken 

3 into account under paragraph (1)(B),’’. 

4 (e) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 the date of the enactment of this Act. 

Æ 


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