I 

111TH CONGRESS 

2D SESSION H. R. 4706 

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 

FEBRUARY 25, 2010 

Mr. OWENS 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 2010’’ or the ‘‘HEATR Act of 

6 2010’’. 

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) INFLATION ADJUSTMENT.— 

15 ‘‘(1) IN GENERAL.—In the case of any taxable 

16 year beginning in 2011, each of the dollar amounts 

17 contained in subsections (a)(2) and (b)(1)(A) shall 

18 be increased by an amount equal to— 

19 ‘‘(A) such dollar amount, multiplied by 

20 ‘‘(B) in the case of— 

21 ‘‘(i) the dollar amount contained in 

22 subsection (a)(2), the fuel price inflation 

23 adjustment for 2011, and 

24 ‘‘(ii) the dollar amount contained in 

25 subsection (b)(1)(A), the cost-of-living adVerDate Nov 24 2008 01:08 Feb 27, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4706.IH H4706

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1 justment determined under section 1(f)(3) 

2 for 2011 by substituting ‘calendar year 

3 2009’ for ‘calendar year 1992’ in subpara4 graph (B) thereof. 

5 ‘‘(2) FUEL PRICE INFLATION ADJUSTMENT.— 

6 For purposes of paragraph (1)(B)(i)— 

7 ‘‘(A) IN GENERAL.—The fuel price infla8 tion adjustment for 2011 is the percentage (if 

9 any) by which— 

10 ‘‘(i) the CPI fuel component for Octo11 ber of 2010, exceeds 

12 ‘‘(ii) the CPI fuel component for Oc13 tober of 2009. 

14 ‘‘(B) CPI FUEL COMPONENT.—The term 

15 ‘CPI fuel component’ means the fuel component 

16 of the Consumer Price Index for All Urban 

17 Consumers published by the Department of 

18 Labor. 

19 ‘‘(3) ROUNDING.— 

20 ‘‘(A) CREDIT AMOUNT.— 

21 ‘‘(i) CREDIT AMOUNT.—If the dollar 

22 amount in subsection (a)(2) (after being 

23 increased under paragraph (1)), is not a 

24 multiple of $10, such dollar amount shall 

25 be rounded to the nearest multiple of $10. 


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1 ‘‘(ii) INCOME THRESHOLD.—If the 

2 dollar amount in subsection (b)(1)(A) 

3 (after being increased under paragraph 

4 (1)), is not a multiple of $50, such dollar 

5 amount shall be rounded to the next lowest 

6 multiple of $50. 

7 ‘‘(f) APPLICATION OF SECTION.—This section shall 

8 apply to residential energy costs paid or incurred after the 

9 date of the enactment of this section, in taxable years end10 ing after such date, and before January 1, 2012.’’. 

11 (b) CONFORMING AMENDMENTS.— 

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

13 31, United States Code, is amended by striking ‘‘or 

14 6428 or’’ and inserting ‘‘, 6428, 6433, or’’. 

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

16 chapter 65 of such Code is amended by adding at 

17 the end the following new item: 

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

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

19 this section shall apply to taxable years ending after the 

20 date of the enactment of this Act. 

Æ 


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