I 
109TH CONGRESS 
1ST SESSION H. R. 4026 
To amend the Internal Revenue Code of 1986 to allow nonrefundable credits 
against income tax for certain gasoline, diesel fuel, and home energy 
consumption expenses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2005 
Mr. CROWLEY (for himself, Mr. ISRAEL, Mr. GRIJALVA, Ms. WASSERMAN 
SCHULTZ, and Mr. DAVIS of Illinois) 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 allow non-
refundable credits against income tax for certain gaso-
line, diesel fuel, and home energy consumption expenses, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Middle Class Energy 
Initiative Act of 2005’’.
SEC. 2. CREDITS FOR CERTAIN GASOLINE, DIESEL FUEL, 
NATURAL GAS, KEROSENE, AND OIL EX-
PENSES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by adding after section 25D the following new 
sections: 
‘‘SEC. 25E. CREDIT FOR QUALIFIED GASOLINE AND DIESEL 
FUEL EXPENSES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the aggregate qualified gasoline and diesel fuel 
expenses paid or incurred by the individual during such 
taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR
AMOUNT.—The credit allowed 
under subsection (a) for a taxable year shall not ex-
ceed $500. 
‘‘(2) ADJUSTED
GROSS
INCOME.—If the ad-
justed gross income of the individual exceeds the 
amount that is twice the median adjusted gross in-
come of taxpayers residing in the State in which 
such individual resides, the credit allowed under sub-
section (a) for a taxable year shall be zero.
‘‘(3) AVERAGE GASOLINE PRICE.—In the case 
of a taxable year in which the average price of a gal-
lon of gasoline, as determined under the U.S. Reg-
ular All Formulations Retail Gasoline Prices by the 
Energy Information Administration of the Depart-
ment of Energy, is not greater than $1.75 per gal-
lon, the credit allowed under subsection (a) for such 
taxable year shall be zero. 
‘‘(c) QUALIFIED GASOLINE AND DIESEL FUEL EX-
PENSES.—For purposes of this section, the term ‘qualified 
gasoline and diesel fuel expenses’ means amounts paid or 
incurred by the individual for gasoline (as defined by sec-
tion 4083(a)(2)) and diesel fuel (as defined by section 
4083(a)(3)). 
‘‘SEC. 25F. CREDIT FOR QUALIFIED HOME ENERGY CON-
SUMPTION EXPENSES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the aggregate qualified home energy consumption 
expenses paid or incurred by the individual during such 
taxable year. 
‘‘(b) LIMITATIONS.—
‘‘(1) DOLLAR
AMOUNT.—The credit allowed 
under subsection (a) for a taxable year shall not ex-
ceed $500. 
‘‘(2) ADJUSTED
GROSS
INCOME.—If the ad-
justed gross income of the individual exceeds the 
amount that is twice the median adjusted gross in-
come of taxpayers residing in the State in which 
such individual resides, the credit allowed under sub-
section (a) for a taxable year shall be zero. 
‘‘(c) QUALIFIED HOME ENERGY CONSUMPTION EX-
PENSES.—For purposes of this section, the term ‘qualified 
home energy consumption expenses’ means amounts paid 
or incurred by an individual for natural gas, kerosene, and 
oil for home energy consumption.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of such part IV is amended by inserting 
after the item relating to section 25D the following new 
items: 
‘‘Sec. 25E. Credit for qualified gasoline and diesel fuel expenses. 
‘‘Sec. 25F. Credit for qualified home energy consumption expenses.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005.
SEC. 
3. 
AMORTIZATION 
OF 
GEOLOGICAL 
AND 
GEO-
PHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Paragraph (1) of section 167(h) 
of the Internal Revenue Code of 1986 (as amended by sec-
tion 1329 of the Energy Tax Incentives Act of 2005) is 
amended by striking ‘‘Any geological and geophysical ex-
penses’’ and inserting ‘‘An amount equal to 90 percent 
of any geological and geophysical expenses’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
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