Amends the Internal Revenue Code to allow individuals an income tax credit equal to 25 percent of the total cost of heating oil purchased by such individuals for use in a residence for residential purposes. Limits the dollar amount of such credit to $200 for the taxable year. Reduces the amount of such credit by one percent of the amount by which the taxpayer's adjusted gross income exceeds $15,000. Provides for the termination of the credit for taxable years ending after December 31, 1983.