A bill to amend the Internal Revenue Code of 1954 to allow a credit for amounts which are paid for natural gas used for farming purposes and which are attributable to the recent increase in rates for natural gas established by the Federal Power Commission.

Allows an income tax credit, not to exceed $500, for the amount paid for natural gas used on a farm for farming purposes which is solely attributable to the increase in the national sales rate ordered by the Federal Power Commission which was published in the Federal Register on August 9, 1976. Applies such provisions to taxable years beginning after December 31, 1975.