II 

111TH CONGRESS 

1ST SESSION S. 2894 

To amend the Internal Revenue Code to provide for a refundable tax credit 

for heating fuels and to create a grant program for States to provide 

individuals with loans to weatherize their homes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 16, 2009 

Mrs. GILLIBRAND introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code to provide for a refundable tax credit for heating fuels and to create a grant 

program for States to provide individuals with loans to 

weatherize their homes. 

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 Heating Fuels 

5 Cost Relief Act of 2009’’. 


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1 SEC. 2. REFUNDABLE CREDIT FOR CERTAIN INDIVIDUALS 

2 USING HOME HEATING FUELS. 

3 (a) IN GENERAL.—Subpart C of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to refundable credits) is amended by insert6 ing before section 37 the following new section: 

7 ‘‘SEC. 36B. USE OF HOME HEATING FUELS IN HOMES. 

8 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli9 gible individual, there shall be allowed as a credit against 

10 the tax imposed by this subtitle for the taxable year an 

11 amount equal to the amounts paid or incurred by the tax12 payer during the taxable year for heating oil, natural gas, 

13 and propane used to heat the principal place of abode of 

14 the taxpayer. 

15 ‘‘(b) LIMITATIONS.— 

16 ‘‘(1) LIMITATION BASED ON DOLLAR

17 AMOUNT.—The amount allowed as a credit under 

18 subsection (a) for any taxable year shall not exceed 

19 $1,000 ($2,000 in the case of a joint return). 

20 ‘‘(2) LIMITATION BASED ON ADJUSTED GROSS

21 INCOME.—No amount shall be allowed as a credit 

22 under subsection (a) for a taxable year in the case 

23 of a taxpayer whose adjusted gross income exceeds 

24 $100,000 ($200,000 in the case of a joint return). 

25 ‘‘(c) ELIGIBLE INDIVIDUAL.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, the term ‘eligible individual’ means any indi3 vidual whose principal place of abode is in the 

4 United States. 

5 ‘‘(2) EXCEPTION.—Except as provided in para6 graph (3), such term shall not include any indi7 vidual— 

8 ‘‘(A) who is not a citizen or lawful perma9 nent resident of the United States, or 

10 ‘‘(B) with respect to whom a deduction 

11 under section 151 is allowed to another tax12 payer for a taxable year beginning in the cal13 endar year in which such individual’s taxable 

14 year begins. 

15 ‘‘(3) SPECIAL RULE FOR MARRIED INDIVID16 UALS.—In the case of persons married to each 

17 other, if one spouse is an eligible individual, the 

18 other spouse shall be treated as an eligible individual 

19 for purposes of this subsection. 

20 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No other cred21 it or deduction shall be allowed under this chapter for any 

22 expense for which a credit is allowed under subsection (a). 

23 ‘‘(e) TERMINATION.—This section shall not apply to 

24 any taxable year beginning after December 31, 2010.’’. 


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1 (b) CONFORMING AMENDMENT.—Paragraph (2) of 

2 section 1324(b) of title 31, United States Code, is amend3 ed by inserting ‘‘36B,’’ after ‘‘36A,’’. 

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

5 for subpart C of part IV of subchapter A of chapter 1 

6 of the Internal Revenue Code of 1986 is amended by in7 serting before the item relating to section 37 the following 

8 new item: 

‘‘Sec. 36B. Use of home heating fuels in homes.’’. 

9 (d) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2008. 

12 SEC. 3. GRANTS TO STATES TO CREATE HOME WEATHER13 IZATION LOAN PROGRAMS. 

14 (a) DEFINITIONS.—In this section: 

15 (1) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible 

16 individual’’ means an individual— 

17 (A) with a principal place of residence in 

18 the United States; 

19 (B) who is a citizen or lawful permanent 

20 resident of the United States; and 

21 (C) with respect to whom a deduction 

22 under section 151 of the Internal Revenue Code 

23 of 1986 is not allowed to another taxpayer for 

24 a taxable year beginning in the calendar year in 

25 which the taxable year of the individual begins. 


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1 (2) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of the Treasury. 

3 (3) STATE.—The term ‘‘State’’ means— 

4 (A) a State; 

5 (B) the District of Columbia; 

6 (C) the Commonwealth of Puerto Rico; 

7 and 

8 (D) any other territory or possession of the 

9 United States. 

10 (4) STATE LOAN FUND.—The term ‘‘State loan 

11 fund’’ means a weatherization revolving loan fund of 

12 a State established under subsection (c). 

13 (5) WEATHERIZATION MATERIALS.—The term 

14 ‘‘weatherization materials’’ means— 

15 (A) caulking and weatherstripping of doors 

16 and windows; 

17 (B) furnace efficiency modifications, in18 cluding— 

19 (i) replacement burners, furnaces, 

20 boilers, or any combination thereof; 

21 (ii) devices for minimizing energy loss 

22 through heating system, chimney, or vent23 ing devices; and 


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1 (iii) electrical or mechanical furnace 

2 ignition systems that replace standing gas 

3 pilot lights; 

4 (C) clock thermostats; 

5 (D) ceiling, attic, wall, floor, and duct in6 sulation; 

7 (E) water heater insulation; 

8 (F) storm windows and doors, multiglazed 

9 windows and doors, and heat-absorbing or heat10 reflective window and door materials; 

11 (G) cooling efficiency modifications, includ12 ing replacement air-conditioners, ventilation 

13 equipment, screening, window films, and shad14 ing devices; 

15 (H) solar thermal water heaters; 

16 (I) wood-heating appliances; and 

17 (J) such other insulating or energy con18 serving devices or technologies as are deter19 mined by the Secretary, after consultation with 

20 the Secretary of Housing and Urban Develop21 ment, the Secretary of Agriculture, and the Of22 fice of Community Services of the Department 

23 of Health and Human Services. 

24 (b) GRANTS.—The Secretary shall carry out a pro25 gram to make grants to States in accordance with this 


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1 section to create revolving loan funds to provide eligible 

2 individuals with loans to purchase weatherization mate3 rials for the purpose of weatherizing the principal place 

4 of residence of an individual. 

5 (c) ESTABLISHMENT OF FUND.—To be eligible to re6 ceive a grant under this section, a State shall agree— 

7 (1) to establish a weatherization revolving loan 

8 fund; 

9 (2) to deposit the grant in the State loan fund; 

10 and 

11 (3) to comply with the other requirements of 

12 this section. 

13 (d) APPLICATIONS.— 

14 (1) IN GENERAL.—A State that seeks to receive 

15 a grant under this section may submit to the Sec16 retary an application for the grant at such time, in 

17 such form, and containing such information as the 

18 Secretary may prescribe. 

19 (2) DETERMINATION OF GRANT AMOUNTS.—In 

20 determining the amount of the grant awarded to a 

21 State, the Secretary shall consider— 

22 (A) the incidence of extreme winter or 

23 summer temperatures within the State; 

24 (B) the average age of homes within the 

25 State; and 


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1 (C) such other factors as the Secretary de2 termines are appropriate. 

3 (e) LOANS.— 

4 (1) IN GENERAL.—Amounts deposited in a 

5 State loan fund (including loan repayments and in6 terest earned on the amounts) shall be used only for 

7 providing loans to eligible individuals to purchase 

8 weatherization materials for the purpose of 

9 weatherizing the principal place of residence of an 

10 individual. 

11 (2) LOAN AMOUNT LIMITATIONS.— 

12 (A) INDIVIDUALS.—Subject to subpara13 graph (B), the total amount of all loans made 

14 from a State loan fund to an eligible individual 

15 during a calendar year may not exceed $5,000. 

16 (B) DWELLING.—The combined amount of 

17 all loans made from the State loan fund to eli18 gible individuals living within a single dwelling 

19 during a calendar year may not exceed $10,000. 

20 (3) INTEREST RATES.—The annual interest 

21 rate for a loan made from a State loan fund shall 

22 be— 

23 (A) in the case of an eligible individual 

24 with an adjusted gross income for the previous 

25 taxable year of $100,000 or less, 1 percent; and 


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1 (B) in the case of an eligible individual 

2 with an adjusted gross income for the previous 

3 taxable year of more than $100,000 but not 

4 more than $200,000, 2 percent. 

5 (4) INCOME LIMITATION.—An eligible individual 

6 with an adjusted gross income of more than 

7 $200,000 shall not be eligible for a loan made from 

8 a State loan fund. 

9 (5) LOAN REPAYMENT.—In order to receive a 

10 loan from a State loan fund, an eligible individual 

11 shall enter into an agreement with the State to 

12 repay the full amount of the loan, plus interest, by 

13 a date that is not more than 2 years after the date 

14 on which the individual receives the loan funds. 

15 (f) ANNUAL REPORT.—Each State receiving a grant 

16 under this section shall submit an annual report to the 

17 Secretary describing the use of funds from the State loan 

18 fund. 

19 (g) REPORT TO CONGRESS.—The Secretary shall 

20 submit to Congress an annual report describing the dis21 tribution of grant funds under this section, including a 

22 copy of each report submitted to the Secretary pursuant 

23 to subsection (f). 


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1 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary to carry 

3 out this section such sums as are necessary. 

Æ 


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