,,ii #aadth ,,congress #b;d ,session ,s4 #biif ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bf1 #bjaf,mr4 ,schatz 7for himself1 ,mr4 ,whitehouse1 ,mrs4 ,feinstein1 ,mr4 ,merkley1 ,ms4 ,warren1 and ,mr4 ,markey7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to phase out tax preferences for fossil fuels on the same schedule as the phase out of the tax credits for wind facilities4 #a4 ,short title ,this ,act may be cited as the ,fossil ,aid is ,inefficient and ,regressive ,energy ,policy ,act or the ,,fair ,energy ,policy ,act4 #b4 ,phase out of tax preferences for fossil fuels 7a7 ,findings ,congress finds the following3 7#a7 ,united ,states tax policy has provided tax preferences1 such as special deductions1 special tax rates1 tax credits1 and grants in lieu of tax credits1 for oil and gas production for #ajj years4 7#b7 ,united ,states tax policy has provided tax preferences for coal production for over #hj years4 7#c7 ,in order to ensure that all sources of energy compete on an equal footing1 as tax credits for renewable energy are phased out over the next #d years1 fossil fuel tax preferences should be phased out on the same schedule4 7b7 ,expensing of intangible drilling costs ,section #bfc of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subsection 7c71 by striking subsection 7i7 and inserting subsections 7i7 and 7j71 and 7#b7 by adding at the end the following new subsection3 7j7 ,phase out of deduction for intangible drilling costs ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 for any intangible drilling and development costs paid or incurred with respect to an oil or gas well1 the amount of such costs allowed as a deduction under subsection 7c7 shall be reduced by-- 7#a7 in the case of any costs paid or incurred after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7#b7 in the case of any costs paid or incurred after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7#c7 in the case of any costs paid or incurred after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7#d7 in the case of any costs paid or incurred after ,december #ca1 #bjai1 #ajj percent4 4 7c7 ,percentage depletion for oil and natural gas wells ,section #fac;,a7d7 of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,phase out of percentage depletion for oil and natural gas wells ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the amount allowed as a deduction for the taxable year which is attributable to the application of subsection 7c7 7determined after the application of paragraphs 7#a7 through 7#e7 of this subsection and without regard to this paragraph7 shall be reduced by-- 7,a7 in the case of any crude oil or natural gas produced after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7,b7 in the case of any crude oil or natural gas produced after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7,c7 in the case of any crude oil or natural gas produced after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7,d7 in the case of any crude oil or natural gas produced after ,december #ca1 #bjai1 #ajj percent4 4 7d7 ,domestic manufacturing deduction for fossil fuels ,section #aii7;d77#i7 of such ,code is amended by adding at the end the following new subparagraph3 7,d7 ,phase out of deduction for oil related qualified production activities income ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the amount allowable as a deduction under subsection 7a7 7determined after the application of subparagraph 7,a7 and without regard to this subparagraph7 shall be reduced by-- 7i7 in the case of any oil related qualified production activities income received or accrued after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7ii7 in the case of any oil related qualified production activities income received or accrued after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7iii7 in the case of any oil related qualified production activities income received or accrued after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7iv7 in the case of any oil related qualified production activities income received or accrued after ,december #ca1 #bjai1 #ajj percent4 4 7e7 ,amortization of geological and geophysical expenditures ,section #afg7;h7 of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,phase out of amortization of geological and geophysical expenditures ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the amount of geological and geophysical expenses paid or incurred by a taxpayer which are allowed as a deduction under this subsection 7without regard to this paragraph7 shall be reduced by-- 7,a7 in the case of any such expenses paid or incurred after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7,b7 in the case of any such expenses paid or incurred after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7,c7 in the case of any such expenses paid or incurred after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7,d7 in the case of any such expenses paid or incurred after ,december #ca1 #bjai1 #ajj percent4 4 7f7 ,percentage depletion for oil shale ,section #fac of such ,code is amended by adding at the end the following new subsection3 7f7 ,phase out of percentage depletion for oil shale ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the allowance for depletion for oil shale determined under this section 7without regard to this subsection7 shall be reduced by-- 7#a7 in the case of any income received or accrued from the property after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7#b7 in the case of any income received or accrued from the property after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7#c7 in the case of any income received or accrued from the property after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7#d7 in the case of any income received or accrued from the property after ,december #ca1 #bjai1 #ajj percent4 4 7g7 ,expensing of exploration and development costs for oil shale ,section #fag of such ,code is amended-- 7#a7 by redesignating subsection 7i7 as subsection 7j71 and 7#b7 by inserting after subsection 7h7 the following new subsection3 7i7 ,phase out of expensing of exploration and development costs for oil shale ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the amount of expenditures related to oil shale which are allowed as a deduction under subsection 7a7 shall be reduced by-- 7#a7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7#b7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7#c7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7#d7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjai1 #ajj percent4 4 7h7 ,capital gains treatment for royalties of coal ,section #fca of such ,code is amended by adding at the end the following new subsection3 7d7 ,phase out of capital gains treatment for royalties of coal ,in the case of coal 7including lignite71 the amount of gain or loss on the sale of such coal to which subsection 7c7 applies shall be reduced by-- 7#a7 in the case of any such gain or loss after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7#b7 in the case of any such gain or loss after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7#c7 in the case of any such gain or loss after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7#d7 in the case of any such gain or loss after ,december #ca1 #bjai1 #ajj percent4 4 7i7 ,deduction for tertiary injectants ,section #aic of such ,code is amended by adding at the end the following new subsection3 7d7 ,phase out of deduction for tertiary injectants ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the amount of qualified tertiary injectant expenses allowable as a deduction under subsection 7a7 shall be reduced by-- 7#a7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7#b7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7#c7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7#d7 in the case of any such expenditures paid or incurred after ,december #ca1 #bjai1 #ajj percent4 4 7j7 ,exception to passive loss limitation for working interests in oil and natural gas properties ,section #dfi7;c7 of such ,code is amended by adding at the end the following new paragraph3 7#h7 ,phase out of exception to passive loss limitation for working interests in oil and natural gas properties ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 for any loss from a working interest in any oil or gas property1 the amount of such loss to which paragraph 7#c7 applies shall be reduced by-- 7,a7 in the case of any such loss after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7,b7 in the case of any such loss after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7,c7 in the case of any such loss after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7,d7 in the case of any such loss after ,december #ca1 #bjai1 #ajj percent4 4 7k7 ,marginal wells credit ,section #de;,i7d7 of such ,code is amended by adding at the end the following new paragraph3 7#d7 ,phase out of marginal wells credit ,in the case of a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the amount of the credit determined under subsection 7a7 shall be reduced by-- 7,a7 in the case of any qualified crude oil production or qualified natural gas production after ,december #ca1 #bjaf1 and before ,january #a1 #bjah1 #bj percent1 7,b7 in the case of any qualified crude oil production or qualified natural gas production after ,december #ca1 #bjag1 and before ,january #a1 #bjai1 #dj percent1 7,c7 in the case of any qualified crude oil production or qualified natural gas production after ,december #ca1 #bjah1 and before ,january #a1 #bjbj1 #fj percent1 and 7,d7 in the case of any qualified crude oil production or qualified natural gas production after ,december #ca1 #bjai1 #ajj percent4 4