Energy Burden Tax Credit Act

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section:

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 75 percent of qualified energy expenses of such individual for such taxable year.

For purposes of this section, the term qualified energy expenses means so much of the amounts paid or incurred by the taxpayer for fuel or electricity to heat or cool the taxpayer's principal residence (as such term is used in section 121) as exceeds 3 percent of the modified adjusted gross income of such taxpayer for the taxable year, determined without regard to any amount which is reimbursed or provided as a subsidy by any governmental program.

The credit allowed under subsection (a) shall not exceed $1,500 ($3,000 in the case of a joint return).

No credit shall be allowed under subsection (a) for the taxable year if the modified adjusted gross income of the taxpayer for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).

For purposes of this section, the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year determined without regard to sections 911, 931, and 933.

No credit shall be allowed under subsection (a) for any taxable year beginning after December 31, 2027.

(1) Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting, 36C after 36B.

(2) Section 1324(b)(2) of title 31, United States Code, is amended by inserting, 36C after, 36B.

(3) The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.