,,ii #aac? ,,congress #a/ ,session ,s4 #cjg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #ac1 #bjac ,mr4 ,m55dez 7= himself1 ,mr4 ,laut5b]g1 ,mr4 ,durb91 ,mr4 ,s*um]1 ,ms4 ,/ab5[1 ,mr4 ,c>d91 ,mrs4 ,mc,caskill1 ,mrs4 ,gillibr&1 ,mr4 ,:iteh\se1 ,mrs4 ,%ahe51 ,mr4 ,frank51 ,mr4 ,re$1 ,mr4 ,nelson1 ,ms4 ,klobu*>1 ,mr4 ,br[n1 ,mr4 ,leahy1 & ,mr4 ,m]kley7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to r$uce ! ,f$]al budget deficit by clos+ big oil tax loopholes1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,close ,big ,oil ,tax ,loopholes ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,,title ,i--,close big oil tax loopholes ,sec4 #aja4 ,modifications ( =eign tax cr$it rules applicable to major integrat$ oil companies :i* are dual capacity taxpay]s4 ,sec4 #ajb4 ,limitation on section #aii d$uction attributable to oil1 natural gas1 or prim>y products !re(4 ,sec4 #ajc4 ,limitation on d$uction = intangible drill+ & developm5t co/s2 amortization ( disall[$ am\nts4 ,sec4 #ajd4 ,limitation on p]c5tage depletion all[ance = oil & gas wells4 ,sec4 #aje4 ,limitation on d$uction = t]ti>y injectants4 ,sec4 #ajf4 ,modification ( def9ition ( major integrat$ oil company4 ,,title ,,ii--,out] ,cont95tal ,%elf oil & natural gas ,sec4 #bja4 ,repeal ( out] ,cont95tal ,%elf deep wat] & deep gas royalty relief4 ,,title ,,iii--,miscellane\s ,sec4 #cja4 ,deficit r$uction4 ,sec4 #cjb4 ,budget>y effects4 ,i ,close big oil tax loopholes #aja4 ,modifications ( =eign tax cr$it rules applicable to major integrat$ oil companies :i* are dual capacity taxpay]s 7a7 ,9 g5]al ,section #ija ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7n7 z subsection 7o7 & by ins]t+ aft] subsection 7m7 ! foll[+ new subsection3 7n7 ,special rules relat+ to major integrat$ oil companies :i* are dual capacity taxpay]s 7#a7 ,g5]al rule ,not)/&+ any o!r provision ( ?is *apt]1 any am\nt paid or accru$ by a dual capacity taxpay] :i* is a major integrat$ oil company 7)9 ! mean+ ( section #afg7;h77#e77 to a =eign c\ntry or possession ( ! ,unit$ ,/ates = any p]iod %all n be consid]$ a tax-- 7,a7 if1 = su* p]iod1 ! =eign c\ntry or possession does n impose a g5]ally applicable income tax1 or 7,b7 to ! ext5t su* am\nt exce$s ! am\nt 7det]m9$ 9 accordance ) regulations7 :i*-- 7i7 is paid by su* dual capacity taxpay] pursuant to ! g5]ally applicable income tax impos$ by ! c\ntry or possession1 or 7ii7 w\ld be paid if ! g5]ally applicable income tax impos$ by ! c\ntry or possession 7 applicable to su* dual capacity taxpay]4 ,no?+ 9 ?is p>agraph %all be con/ru$ to imply ! prop] treatm5t ( any su* am\nt n 9 excess ( ! am\nt det]m9$ "u subp>agraph 7,b74 7#b7 ,dual capacity taxpay] ,= purposes ( ?is subsection1 ! t]m dual capacity taxpay] means1 ) respect to any =eign c\ntry or possession ( ! ,unit$ ,/ates1 a p]son :o-- 7,a7 is subject to a levy ( su* c\ntry or possession1 & 7,b7 receives 7or w receive7 directly or indirectly a specific economic b5efit 7z det]m9$ 9 accordance ) regulations7 f su* c\ntry or possession4 7#c7 ,g5]ally applicable income tax ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m g5]ally applicable income tax means an income tax 7or a s]ies ( income taxes7 :i* is g5]ally impos$ "u ! laws ( a =eign c\ntry or possession on income d]iv$ f ! conduct ( a trade or bus9ess )9 su* c\ntry or possession4 7,b7 ,exceptions ,su* t]m %all n include a tax unless x has sub/antial application1 by its t]ms & 9 practice1 to-- 7i7 p]sons :o are n dual capacity taxpay]s1 & 7ii7 p]sons :o are citiz5s or resid5ts ( ! =eign c\ntry or possession4 4 7b7 ,effective ,date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to taxes paid or accru$ 9 taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 7#b7 ,contr>y treaty obligations upheld ,! am5dm5ts made by ?is section %all n apply to ! ext5t contr>y to any treaty obligation ( ! ,unit$ ,/ates4 #ajb4 ,limitation on section #aii d$uction attributable to oil1 natural gas1 or prim>y products !re( 7a7 ,d5ial ( d$uction ,p>agraph 7#d7 ( section #aii7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,special rule = c]ta9 oil & gas income ,9 ! case ( any taxpay] :o is a major integrat$ oil company 7)9 ! mean+ ( section #afg7;h77#e77 = ! taxable ye>1 ! t]m dome/ic production gross receipts %all n include gross receipts f ! production1 ref9+1 process+1 transportation1 or di/ribution ( oil1 gas1 or any prim>y product 7)9 ! mean+ ( subsection 7d77#i77 !re(4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #ajc4 ,limitation on d$uction = intangible drill+ & developm5t co/s2 amortization ( disall[$ am\nts 7a7 ,9 g5]al ,section #bfc7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7c7 ,intangible drill+ & developm5t co/s 9 ! case ( oil & gas wells & geo!rmal wells 7#a7 ,9 g5]al ,not)/&+ subsection 7a71 & except z provid$ 9 subsection 7i71 regulations %all be prescrib$ by ! ,secret>y "u ?is subtitle correspond+ to ! regulations :i* grant$ ! option to d$uct z exp5ses intangible drill+ & developm5t co/s 9 ! case ( oil & gas wells & :i* 7 recogniz$ & approv$ by ! ,congress 9 ,h\se ,concurr5t ,resolution #ej1 ,sev5ty-n9? ,congress4 ,su* regulations %all also grant ! option to d$uct z exp5ses intangible drill+ & developm5t co/s 9 ! case ( wells drill$ = any geo!rmal deposit 7z def9$ 9 section #fac7;e77#b77 to ! same ext5t & 9 ! same mann] z su* exp5ses are d$uctible 9 ! case ( oil & gas wells4 ,?is subsection %all n apply ) respect to any co/s to :i* any d$uction is all[$ "u section #ei7;e7 or #bia4 7#b7 ,exclusion 7,a7 ,9 g5]al ,?is subsection %all n apply to am\nts paid or incurr$ by a taxpay] 9 any taxable ye> 9 :i* su* taxpay] is a major integrat$ oil company 7)9 ! mean+ ( section #afg7;h77#e774 7,b7 ,amortization ( am\nts n all[able z d$uctions "u subp>agraph 7,a7 ,! am\nt n all[able z a d$uction = any taxable ye> by reason ( subp>agraph 7,a7 %all be all[able z a d$uction ratably ov] ! #fj-mon? p]iod beg9n+ ) ! mon? 9 :i* ! co/s are paid or incurr$4 ,= purposes ( section #abed1 any d$uction "u ?is subp>agraph %all be treat$ z a d$uction "u ?is subsection4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to am\nts paid or incurr$ 9 taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #ajd4 ,limitation on p]c5tage depletion all[ance = oil & gas wells 7a7 ,9 g5]al ,section #fac;,a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,application ) respect to major integrat$ oil companies ,9 ! case ( any taxable ye> 9 :i* ! taxpay] is a major integrat$ oil company 7)9 ! mean+ ( section #afg7;h77#e771 ! all[ance = p]c5tage depletion %all be z]o4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #aje4 ,limitation on d$uction = t]ti>y injectants 7a7 ,9 g5]al ,section #aic ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7d7 ,application ) respect to major integrat$ oil companies 7#a7 ,9 g5]al ,?is section %all n apply to am\nts paid or incurr$ by a taxpay] 9 any taxable ye> 9 :i* su* taxpay] is a major integrat$ oil company 7)9 ! mean+ ( section #afg7;h77#e774 7#b7 ,amortization ( am\nts n all[able z d$uctions "u p>agraph 7#a7 ,! am\nt n all[able z a d$uction = any taxable ye> by reason ( p>agraph 7#a7 %all be all[able z a d$uction ratably ov] ! #fj-mon? p]iod beg9n+ ) ! mon? 9 :i* ! co/s are paid or incurr$4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to am\nts paid or incurr$ 9 taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #ajf4 ,modification ( def9ition ( major integrat$ oil company 7a7 ,9 g5]al ,p>agraph 7#e7 ( section #afg7;h7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,c7 ,c]ta9 successors 9 int]e/ ,= purposes ( ?is p>agraph1 ! t]m major integrat$ oil company includes any successor 9 int]e/ ( a company t 0 describ$ 9 subp>agraph 7,b7 9 any taxable ye>1 if su* successor controls m ?an #ej p]c5t ( ! crude oil production or natural gas production ( su* company4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,9 g5]al ,subp>agraph 7,b7 ( section #afg7;h77#e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ except z provid$ 9 subp>agraph 7,c71 aft] ,= purposes ( ?is p>agraph14 7#b7 ,taxable ye>s te/$ ,clause 7iii7 ( section #afg7;h77#e77;,b7 ( su* ,code is am5d$-- 7,a7 by /rik+ does n apply by reason ( p>agraph 7#d7 ( section #fac;,a7d7 & ins]t+ did n apply by reason ( p>agraph 7#d7 ( section #fac;,a7d7 = any taxable ye> aft] #bjjd1 & 7,b7 by /rik+ does n apply 9 subclause 7,,ii7 & ins]t+ did n apply = ! taxable ye>4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 ,,ii ,out] ,cont95tal ,%elf oil & natural gas #bja4 ,repeal ( out] ,cont95tal ,%elf deep wat] & deep gas royalty relief 7a7 ,9 g5]al ,sections #cdd & #cde ( ! ,en]gy ,policy ,act ( #bjje 7#db ,u4,s4,c4 #aeijd1 #aeije7 are repeal$4 7b7 ,adm9i/ration ,! ,secret>y ( ! ,int]ior %all n be requir$ to provide = royalty relief 9 ! lease sale t]ms beg9n+ ) ! fir/ lease sale held on or aft] ! date ( enactm5t ( ?is ,act = :i* a f9al notice ( sale has n be5 publi%$4 ,,iii ,miscellane\s #cja4 ,deficit r$uction ,! net am\nt ( any sav+s realiz$ z a result ( ! enactm5t ( ?is ,act & ! am5dm5ts made by ?is ,act 7aft] any exp5ditures au?oriz$ by ?is ,act & ! am5dm5ts made by ?is ,act7 %all be deposit$ 9 ! ,treasury & us$ = ,f$]al budget deficit r$uction or1 if !re is no ,f$]al budget deficit1 = r$uc+ ! ,f$]al debt 9 su* mann] z ! ,secret>y ( ! ,treasury consid]s appropriate4 #cjb4 ,budget>y effects ,! budget>y effects ( ?is ,act1 = ! purpose ( comply+ ) ! ,/atutory ,pay-,z-,y-,g ,act ( #bjaj1 %all be det]m9$ by ref]5ce to ! late/ /atem5t titl$ ,budget>y ,effects ( ,,paygo ,legislation = ?is ,act1 submitt$ = pr9t+ 9 ! ,congressional ,record by ! ,*airman ( ! ,s5ate ,budget ,committee1 provid$ t su* /atem5t has be5 submitt$ prior to ! vote on passage4