McHugh Backs Pair of Tax Credits to Help Energy Affordability, Conservation

McHUGH BACKS PAIR OF TAX CREDITS TO HELP ENERGY AFFORDABILITY, CONSERVATION

WASHINGTON, D.C. - As part of his ongoing commitment to improving America's energy independence and, in turn, reducing the energy cost burden, Rep. John M. McHugh (R-NY) is sponsoring two legislative remedies that would provide tax relief for Americans.

First, with the impact of high heating prices in mind, McHugh has joined 24 of his colleagues in the Northeast-Midwest Congressional Coalition to introduce the Home Energy Assistance Tax (HEAT) Credit Act. The legislation provides a refundable tax credit for 25 percent of home energy costs (natural gas, heating oil, propane, and electricity) for the months between October 2005 and March 2006. The credit would be capped at $200 for individual filers with an Adjusted Gross Income below $30,000 and $400 for joint filers with an Adjusted Gross Income below $60,000.

"Americans are facing significant increases in the cost of home heating fuels, which have come on top of last year's double-digit price jumps - far outpacing the rate of inflation," McHugh said. "Even though we have worked to increase the amount of federal assistance available through the Low Income Home Energy Assistance Program (LIHEAP), this is simply not enough. Residents in our coldest states where fuel prices are skyrocketing, such as the Northeast, need the added financial support that this tax credit will provide."

Estimates show that households are experiencing the following average increases in spending over last winter, depending on fuel sources: natural gas, $178 (24 percent); heating oil, $195 (16 percent); propane, $150 (14 percent); and electricity, $36 (5 percent).

"We must address more than just the impact that energy prices are having on the pocketbooks of hardworking Americans across our nation," McHugh noted. "An increased focus on fuel conservation is also necessary, not only to reduce this country's dependence on foreign sources of oil, but also to reduce the pollutants that have a negative impact on our environment."

McHugh is also backing bipartisan legislation, the Idle Reduction Tax Credit Act, that provides a 25 percent tax credit to trucking companies for the purchase of idling reduction devices - up to $1,000 for each commercial truck outfitted with this equipment.

It is estimated that one truck burns around eight gallons of diesel fuel while idling over a 10-hour rest period. Over the course of a year, this could amount to as many as 2,400 gallons of fuel used during idling - and thousands of dollars lost by trucking companies. Idling reduction devices save money, conserve energy, and reduce ozone, particulate and greenhouse gas emissions by 80 to 90 percent.

"It is critical that we work to find common-sense solutions to our nation's energy challenges," McHugh said. "They are necessary to ensure that Americans can afford the heating fuels they need in today's marketplace, and to also make certain that in the years to come, we are taking meaningful steps toward true energy independence."

http://mchugh.house.gov/pr2006/030306_taxcredits.html