HEATR Act of 2014

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. Short title This Act may be cited as the Home Energy Affordability Tax Relief Act of 2014 HEATR Act of 2014 2. Refundable credit for residential energy costs (a) In general Subchapter B of chapter 65 6433. Refundable credit for residential energy costs (a) General rule In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— (1) 33 percent of the amount of the taxpayer’s residential energy costs for such taxable year, or (2) $500. (b) Income limitation (1) In general The amount allowable as a credit under subsection (a) for any taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount so allowable (determined without regard to this paragraph) as— (A) the amount (if any) by which the taxpayer's adjusted gross income exceeds $50,000 (twice such amount in the case of a joint return), bears to (B) $10,000. (2) Determination of adjusted gross income For purposes of paragraph (1), adjusted gross income shall be determined without regard to sections 911, 931, and 933. (c) Definitions and special rules For purposes of this section— (1) Residential energy costs The term residential energy costs (A) to any utility for electricity or natural gas used in the principal residence of the taxpayer during the heating season, and (B) for any qualified fuel for use in the principal residence of the taxpayer but only if such fuel is the primary fuel for heating such residence. (2) Principal residence (A) In general The term principal residence (B) Special rules Such term shall not include— (i) any residence located outside the United States, and (ii) any residence not used as the taxpayer’s principal place of abode throughout the heating season. (3) Heating season The term heating season (4) Qualified fuel The term qualified fuel (d) Other special rules (1) Individuals paying on level payment basis Amounts paid for natural gas under a level payment plan for any period shall be treated as paid for natural gas used during the portion (if any) of the heating season during such period to the extent of the amount charged for natural gas used during such portion of the heating season. A similar rule shall apply to electricity and any qualified fuel. (2) Homeowners associations, etc The application of this section to homeowners associations (as defined in section 528(c)(1)) or members of such associations, and tenant-stockholders in cooperative housing corporations (as defined in section 216), shall be allowed by allocation, apportionment, or otherwise, to the individuals paying, directly or indirectly, for the residential energy cost so incurred. (3) Dollar amount in case of joint occupancy In the case of a dwelling unit which is the principal residence by 2 or more individuals, the dollar limitation under subsection (a)(2) shall be allocated among such individuals under regulations prescribed by the Secretary. (4) Treatment as refundable credit For purposes of this title, the credit allowed by this section shall be treated as a credit allowed under subpart C of part IV of subchapter A of chapter 1 (relating to refundable credits). (e) Application of section This section shall apply to residential energy costs paid or incurred after the date of the enactment of this section and before April 1, 2016. . (b) Conforming amendments (1) Paragraph (2) of section 1324(b) or 6428 or , 6428, 6433, or (2) The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item: Sec. 6433. Refundable credit for residential energy costs. (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

Summary: Home Energy Affordability Tax Relief Act of 2014 or the HEATR Act of 2014 - Amends the Internal Revenue Code to allow an individual taxpayer an income-based refundable tax credit for energy costs for the taxpayer's principal residence. Limits such credit to the lesser of 33% of such costs or $500. Allow such credit for residential energy costs paid or incurred after the enactment of this Act and before April 1, 2016.