Home Energy Affordability Tax Relief Act of 2014

“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 means the amount paid or incurred by the taxpayer during the taxable year—

“(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 has the meaning given to such term by section 121; except that no ownership requirement shall be imposed.

“(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 means October, November, December, January, February, and March.

“(4) Qualified fuel—The term qualified fuel includes propane, heating oil, kerosene, wood, and wood pellets.

“(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.”