I 

113TH CONGRESS 

2D SESSION H. R. 4326 

To amend the Internal Revenue Code of 1986 to provide a refundable credit 

against income tax to assist individuals with high residential energy costs. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 27, 2014 

Mr. SEAN PATRICK MALONEY of New York 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 provide 

a refundable credit against income tax to assist individuals with high residential energy costs. 

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 ‘‘Home Energy Afford5 ability Tax Relief Act of 2014’’ or the ‘‘HEATR Act of 

6 2014’’. 

7 SEC. 2. REFUNDABLE CREDIT FOR RESIDENTIAL ENERGY 

8 COSTS. 

9 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

10 Internal Revenue Code of 1986 (relating to rules of special 


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1 application) is amended by adding at the end the following 

2 new section: 

3 ‘‘SEC. 6433. REFUNDABLE CREDIT FOR RESIDENTIAL EN4 ERGY COSTS. 

5 ‘‘(a) GENERAL RULE.—In the case of an individual, 

6 there shall be allowed as a credit against the tax imposed 

7 by this subtitle for the taxable year an amount equal to 

8 the lesser of— 

9 ‘‘(1) 33 percent of the amount of the taxpayer’s 

10 residential energy costs for such taxable year, or 

11 ‘‘(2) $500. 

12 ‘‘(b) INCOME LIMITATION.— 

13 ‘‘(1) IN GENERAL.—The amount allowable as a 

14 credit under subsection (a) for any taxable year shall 

15 be reduced (but not below zero) by an amount which 

16 bears the same ratio to the amount so allowable (de17 termined without regard to this paragraph) as— 

18 ‘‘(A) the amount (if any) by which the tax19 payer’s adjusted gross income exceeds $50,000 

20 (twice such amount in the case of a joint re21 turn), bears to 

22 ‘‘(B) $10,000. 

23 ‘‘(2) DETERMINATION OF ADJUSTED GROSS IN24 COME.—For purposes of paragraph (1), adjusted 


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1 gross income shall be determined without regard to 

2 sections 911, 931, and 933. 

3 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur4 poses of this section— 

5 ‘‘(1) RESIDENTIAL ENERGY COSTS.—The term 

6 ‘residential energy costs’ means the amount paid or 

7 incurred by the taxpayer during the taxable year— 

8 ‘‘(A) to any utility for electricity or natural 

9 gas used in the principal residence of the tax10 payer during the heating season, and 

11 ‘‘(B) for any qualified fuel for use in the 

12 principal residence of the taxpayer but only if 

13 such fuel is the primary fuel for heating such 

14 residence. 

15 ‘‘(2) PRINCIPAL RESIDENCE.— 

16 ‘‘(A) IN GENERAL.—The term ‘principal 

17 residence’ has the meaning given to such term 

18 by section 121; except that no ownership re19 quirement shall be imposed. 

20 ‘‘(B) SPECIAL RULES.—Such term shall 

21 not include— 

22 ‘‘(i) any residence located outside the 

23 United States, and 


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1 ‘‘(ii) any residence not used as the 

2 taxpayer’s principal place of abode 

3 throughout the heating season. 

4 ‘‘(3) HEATING SEASON.—The term ‘heating 

5 season’ means October, November, December, Janu6 ary, February, and March. 

7 ‘‘(4) QUALIFIED FUEL.—The term ‘qualified 

8 fuel’ includes propane, heating oil, kerosene, wood, 

9 and wood pellets. 

10 ‘‘(d) OTHER SPECIAL RULES.— 

11 ‘‘(1) INDIVIDUALS PAYING ON LEVEL PAYMENT

12 BASIS.—Amounts paid for natural gas under a level 

13 payment plan for any period shall be treated as paid 

14 for natural gas used during the portion (if any) of 

15 the heating season during such period to the extent 

16 of the amount charged for natural gas used during 

17 such portion of the heating season. A similar rule 

18 shall apply to electricity and any qualified fuel. 

19 ‘‘(2) HOMEOWNERS ASSOCIATIONS, ETC.—The 

20 application of this section to homeowners associa21 tions (as defined in section 528(c)(1)) or members 

22 of such associations, and tenant-stockholders in co23 operative housing corporations (as defined in section 

24 216), shall be allowed by allocation, apportionment, 


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1 or otherwise, to the individuals paying, directly or 

2 indirectly, for the residential energy cost so incurred. 

3 ‘‘(3) DOLLAR AMOUNT IN CASE OF JOINT OCCU4 PANCY.—In the case of a dwelling unit which is the 

5 principal residence by 2 or more individuals, the dol6 lar limitation under subsection (a)(2) shall be allo7 cated among such individuals under regulations pre8 scribed by the Secretary. 

9 ‘‘(4) TREATMENT AS REFUNDABLE CREDIT.— 

10 For purposes of this title, the credit allowed by this 

11 section shall be treated as a credit allowed under 

12 subpart C of part IV of subchapter A of chapter 1 

13 (relating to refundable credits). 

14 ‘‘(e) APPLICATION OF SECTION.—This section shall 

15 apply to residential energy costs paid or incurred after the 

16 date of the enactment of this section and before April 1, 

17 2016.’’. 

18 (b) CONFORMING AMENDMENTS.— 

19 (1) Paragraph (2) of section 1324(b) of title 

20 31, United States Code, is amended by striking ‘‘or 

21 6428 or’’ and inserting ‘‘, 6428, 6433, or’’. 

22 (2) The table of sections for subchapter B of 

23 chapter 65 of such Code is amended by adding at 

24 the end the following new item: 

‘‘Sec. 6433. Refundable credit for residential energy costs.’’. 


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

2 this section shall apply to taxable years ending after the 

3 date of the enactment of this Act. 

Æ 


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