I 
110TH CONGRESS 
2D SESSION 
H. R. 6804 
To amend the Internal Revenue Code of 1986 to allow individuals a temporary 
refundable credit for the cost of natural gas, home heating oil, and 
propane, to allow small businesses, farmers, and fishermen a credit 
for motor and other fuel costs, and to increase the credit for nonbusiness 
energy property and make it permanent, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2008 
Mr. COURTNEY (for himself and Mr. MURPHY of Connecticut) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Energy and Commerce and Edu-
cation and Labor, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to allow indi-
viduals a temporary refundable credit for the cost of 
natural gas, home heating oil, and propane, to allow 
small businesses, farmers, and fishermen a credit for 
motor and other fuel costs, and to increase the credit 
for nonbusiness energy property and make it permanent, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Families and Small 
Business Energy Tax Relief Act of 2008’’. 
SEC. 2. TEMPORARY REFUNDABLE CREDIT AGAINST IN-
COME TAX FOR NATURAL GAS, HEATING OIL, 
AND PROPANE COSTS OF INDIVIDUALS. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 (relating to rules of special 
application) is amended by adding at the end the following 
new section: 
‘‘SEC. 6431. TEMPORARY REFUNDABLE CREDIT AGAINST IN-
COME TAX FOR NATURAL GAS, HEATING OIL, 
AND PROPANE COSTS OF INDIVIDUALS. 
‘‘(a) GENERAL RULE.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by subtitle A for the taxable year an amount equal to the 
lesser of— 
‘‘(1) 50 percent of the amount of the taxpayer’s 
residential energy costs for such taxable year, or 
‘‘(2) $750 ($1,500 in the case of a joint re-
turn). 
‘‘(b) INCOME LIMITATION.— 
‘‘(1) IN GENERAL.—The amount allowable as a 
credit under subsection (a) for any taxable year 
(without regard to this subsection) shall be reduced 
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(but not below zero) by an amount which bears the 
same ratio to the amount so allowable as— 
‘‘(A) the excess (if any) of the taxpayer’s 
adjusted gross income over $75,000 ($150,000 
in the case of a joint return), bears to 
‘‘(B) $10,000 ($20,000 in the case of a 
joint return). 
‘‘(2) DETERMINATION OF ADJUSTED GROSS IN-
COME.—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 pur-
poses of this section— 
‘‘(1) RESIDENTIAL ENERGY COSTS.—The term 
‘residential energy costs’ means the amount paid or 
incurred by the taxpayer during the taxable year— 
‘‘(A) to any utility for natural gas used in 
the principal residence of the taxpayer during 
the heating season, and 
‘‘(B) for heating oil or propane for use in 
the principal residence of the taxpayer. 
‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the meaning given to such term 
by section 121. 
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‘‘(3) HEATING
SEASON.—The term ‘heating 
season’ means September, October, November, De-
cember, January, February, and March. 
‘‘(4) SPECIAL RULES.—This section shall not 
apply to fuel used in— 
‘‘(A) any residence located outside the 
United States, or 
‘‘(B) any residence which is not the tax-
payer’s principal place of abode throughout the 
heating season. 
‘‘(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. 
‘‘(2) HOMEOWNERS ASSOCIATIONS, ETC.—This 
section shall apply to homeowners associations (as 
defined in section 528(c)(1)), members of such asso-
ciations, and tenant-stockholders in cooperative 
housing corporations (as defined in section 216) 
under regulations prescribed by the Secretary. 
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‘‘(3) 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 amounts paid or incurred during 2008 or 2009.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by striking ‘‘or 
6428 or’’ and inserting ‘‘, 6428, 6431, 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. 6431. Temporary refundable credit against income tax for natural gas, 
heating oil, and propane costs of individuals.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2007. 
SEC. 3. TEMPORARY CREDIT AGAINST INCOME TAX FOR 
SMALL BUSINESSES, FARMERS, AND FISHER-
MEN TO OFFSET HIGH FUEL COSTS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
inserting after section 45P the following new section: 
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‘‘SEC. 45Q. TEMPORARY CREDIT FOR SMALL BUSINESSES, 
FARMERS, AND FISHERMEN TO OFFSET HIGH 
FUEL COSTS. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the fuel cost credit determined under this section 
is an amount equal to 15 percent of the amount paid or 
incurred by the taxpayer during the taxable year for any 
creditable fuel used in any trade or business of the tax-
payer if— 
‘‘(1) such trade or business is— 
‘‘(A) a farming business (as defined by 
section 263A(e)(4)), or 
‘‘(B) commercial fishing (as defined in sec-
tion 3 of the Magnuson-Stevens Fishery Con-
servation and Management Act (16 U.S.C. 
1802)), or 
‘‘(2) such taxpayer is a small business. 
‘‘(b) SMALL BUSINESS.—For purposes of this sec-
tion, the term ‘small business’ means a corporation or 
partnership which meets the gross receipts test of section 
448(c) for the taxable year (or, in the case of a sole propri-
etorship, which would meet such test if such proprietor-
ship were a corporation), except that such section shall 
be applied by substituting ‘$20,000,000’ for ‘$5,000,000’ 
in each place it appears. 
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‘‘(c) CREDITABLE FUEL.—The term ‘creditable fuel’ 
means— 
‘‘(1) gasoline, 
‘‘(2) diesel fuel, 
‘‘(3) heating oil, 
‘‘(4) propane, and 
‘‘(5) natural gas. 
‘‘(d) APPLICATION OF SECTION.—This section shall 
apply to amounts paid or incurred during 2008 or 2009.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (32), by 
striking the period at the end of paragraph (33) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing: 
‘‘(34) the fuel cost credit determined under sec-
tion 45Q(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 45P the following new item: 
‘‘Sec. 45Q. Temporary credit for small businesses, farmers, and fishermen to 
offset high fuel costs.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2007. 
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