Definition

• The Home Energy Affordability Tax Relief Act (HEATR), formally known as H.R. 6321, is legislation proposed in June 2008 that would provide a tax credit for certain individuals with high home-heating costs.
  
  

Who Qualifies?

• The bill proposes tax credits for homeowners or renters in the United States on an income-based method.
  
  

Products/Season

• Qualifying purchases are for propane, heating oil, kerosene, wood and wood pellets purchased during the heating season of October through March.
  
  

Calculation

• Taxpayers would deduct 33 percent of their heating costs or $500 (whichever is lesser). Costs must be paid to a utility (electric or gas) or for a qualifying product.
  
  

Income Restrictions

• Proposed language indicates a $50,000 income cap per individual. Any adjusted gross income exceeding $50,000 is deducted from the allowable credit, quickly rendering the person ineligible.
  
  

Budget Plans

• Individuals paying on "budget plans" may consider the entire year for calculation purposes rather than just the heating season of October through March.