WASHINGTON, DC – Senator Hillary Rodham Clinton has introduced legislation to provide real relief to New Yorkers and people across the country that are struggling with the soaring costs of home heating. The Home Energy Affordability Tax Relief Act of 2008 (“HEATR Act”) would provide direct financial assistance in the form of a refundable tax credit for low-income and middle-class homeowners and renters. Senator Clinton’s bill is the Senate companion to legislation introduced in the House by Congressman John McHugh (R-NY). Senator Clinton also welcomed full funding for the Low Income Home Energy Assistance Program (LIHEAP) at $5.1 billion for FY 2009 in the Continuing Resolution now before Congress.

“We need to take action now to provide real relief to hardworking New Yorkers who are feeling the crush of growing financial and mortgage crises, and are now facing the prospects of skyrocketing home heating costs as winter fast approaches,” said Senator Clinton. “Without the additional assistance I have proposed, too many hardworking families will again face the unthinkable situation of paying for necessities like food and prescriptions, or paying their energy bills. My legislation will offer additional assistance to families facing these impossible decisions so that we not only help ease their financial burden, but also provide peace of mind during these difficult times.”

The HEATR Act would provide a $500 refundable tax credit for individuals and families who spend more than $1,500 on home heating costs during the coming winter season; those who spend below $1,500 would receive a credit equal to one third of their heating costs. The HEATR Act would apply to both homeowners and renters, providing relief for consumers across the board. Individual tax filers making under $50,000 would be eligible for the credit as well as joint filers making under $100,000; only one credit would be allowed per housing unit. Above those income levels, the credit would phase out at $60,000 and $110,000 respectively. Eligible heating fuels include, but are not limited to, electricity, natural gas, propane, heating oil, kerosene, wood, and wood pellets. Senator Clinton would pay for the legislation by closing tax loopholes for large oil companies. The five largest oil companies have recorded profits of more than $650 billion dollars since the beginning of 2001.

Senator Clinton also welcomed full funding for the LIHEAP Program in the FY 2009 Continuing Resolution, which passed the U.S. House of Representatives yesterday and is expected to come to the Senate for a vote later today. Funding at this level would increase federal heating assistance to New York to about $550 million, an increase of $250 million over last year’s funding levels.

Higher oil prices mean that New York families who rely on heating oil will see particularly big increases in heating costs this winter. New York State Energy Research and Development Authority (NYSERDA) has forecast that New Yorkers will pay an average of $4.58 for heating oil this winter, $2.00 higher than the $2.58 per gallon average contract price for heating oil last winter. This means that a typical New York family using about 600 gallons of heating oil per year would see their winter fuel bill rise by $1,200 to total of $2,750 at current prices. New data from NYSERDA shows that heating oil prices have already risen sharply across New York:

Senator Clinton has long fought to fully fund the LIHEAP program and provide relief to low-income families facing rising energy prices. Last month she spoke on the Senate Floor and voiced her strong support for the program. In April, Senator Clinton joined a bipartisan coalition of her colleagues in urging the Senate Appropriations Committee to fully fund LIHEAP at $5.1 billion in 2009.  Late last year, as part of her ongoing efforts to ensure working families receive the resources they need to combat rising heating and energy costs, Senator Clinton called on the President to immediately release all funding from the LIHEAP contingency fund, which is available at his discretion.

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