(a) In general

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:

36D. Electricity and gas credit

(a) Allowance of credit

In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to so much of the qualified energy costs of such individual as do not exceed $350 for the taxable year.

(b) Qualified energy costs

(1) In general

For purposes of this section, the term qualified energy costs means amounts paid or incurred by the individual—

(A)

to a utility for gas and electric service at the principal residence of such individual, or

(B)

to a person from whom such individual leases such individual’s primary residence for gas and electric service from a utility if such costs are included in the rent of such individual.

(2) Utility

For purposes of this subsection, the term utility has the meaning given such term in section 48(a)(8)(D).

(c) Principal residence

For purposes of this section, the term principal residence has the same meaning as when used in section 121.

(d) Income limitation

(1) In general

In the case of any individual whose modified adjusted gross income for the taxable year exceeds the following amounts, the amount of the credit determined under subsection (a) shall be zero.

(A)

In the case of a joint return, $400,000.

(B)

In the case of any other individual, $200,000.

(2) Modified adjusted gross income

For purposes of paragraph (1), the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.

(e) Denial of double benefit

No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.

(f) Denial of credit to dependents

No credit shall be allowed under this section to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins.

(g) Reporting

In the case of any person who leases the principal residence of another individual to such individual and includes the cost of electricity or gas in rent paid under such lease, such person shall provide to the Secretary and to the individual, not later than January 31st of each calendar year, a receipt for the portion of the rent for the preceding calendar year properly attributable to such individual’s electric and gas service for such preceding calendar year.

(b) Conforming amendments

(c) Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.