(Washington, DC)  --  U.S. Rep. Steven C. LaTourette (R-OH) today introduced bipartisan legislation designed to help lower and middle income Americans defray the high cost of heating their homes this winter through a one-time refundable tax credit covering 25 percent of a family’s home energy costs.

 “Energy prices have soared this winter, and federal programs that provide assistance are leaving many low and middle income families out in the cold,” LaTourette said.  “Folks are being stung by heating bills that can be about 25 percent higher than they were just a year ago, and this bill will help ease the financial burden.”

 The Home Energy Assistance Tax Credit Act (HEAT Credit Act) was introduced by LaTourette and U.S. Rep. Martin Meehan (D-MA), co-chairs the Northeast Midwest Congressional Coalition.  The bill has several original co-sponsors.

 LaTourette said his bill will provide a one-time tax credit of up to $200 for single filers with an adjusted gross income up to $30,000, and $400 for joint filers with an adjusted gross income up to $60,000.  This credit gradually phases out for those with adjusted gross incomes between $30,000 and $40,000 for singles, and $60,000 to $80,000 for joint filers.

 “In crafting the bill we recognized that heating bills are a tremendous hardship on many lower and middle income families, and we tried to craft a bill that will help as many people as possible,” LaTourette said.  “The bill is especially targeted to help those who don’t qualify for or seek other types of heating assistance.”

 The HEAT Credit Act applies to up to 25 percent of home energy costs for the period between October 2005 and March 2006, and includes homes heated by natural gas, heating oil, propane, and electricity.  It doesn’t matter if you rent or own a home, LaTourette added.  The tax credit is offset dollar-for-dollar by any federal, state or local grants an individual or family receives for home heating.

 LaTourette said consumers can claim the refundable credit when filing their taxes next year, and will still receive the credit even if they do not owe taxes because it is a refundable tax credit.  (In other words, if you owe no taxes to the IRS you will get the tax credit as a payment from the IRS.)

 LaTourette said families weathered big increases in their heating bills last year, and this year has been even worse.  Prices have continued to rise as a result of increasing global demand, and supply is still down as a result of Hurricanes Katrina and Rita.

 The Energy Information Administration has issued the following short-term energy projections, and heating costs are expected to ease somewhat due to the warmer than usual January:

 • households heating primarily with natural gas can expect to spend $178 (24 percent) more for fuel this winter than last winter;

 • households heating primarily with heating oil can expect to pay, on average, $195 (16 percent) more this winter than last;

 • households heating primarily with propane can expect to pay, on average, $150 (14 percent) more this winter than last;

 • households heating primarily with electricity can expect to pay, on average, $36 (5 percent) more than last winter.