,,ii  #aad? ,,congress  #b;d ,session   
,s4 #biif  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bf1 #bjaf,mr4    
,s*atz 7= himself1 ,mr4 ,:iteh\se1 ,mrs4
 ,fe9/e91 ,mr4 ,m]kley1 ,ms4 ,w>r51 &   
,mr4 ,m>key7 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 phase out tax pref]5ces = fossil fuels 
on ! same s*$ule z ! phase out ( ! tax  
cr$its = w9d facilities4  #a4 ,%ort     
title ,?is ,act may be cit$ z ! ,fossil 
,aid is ,ineffici5t & ,regressive ,en]gy
 ,policy ,act or ! ,,fair ,en]gy ,policy
 ,act4  #b4 ,phase out ( tax pref]5ces =
 fossil fuels  7a7 ,f9d+s ,congress f9ds
 ! foll[+3  7#a7 ,unit$ ,/ates tax      
policy has provid$ tax pref]5ces1 su* z 
special d$uctions1 special tax rates1   
tax cr$its1 & grants 9 lieu ( tax       
cr$its1 = oil & gas production = #ajj   
ye>s4  7#b7 ,unit$ ,/ates tax policy has
 provid$ tax pref]5ces = coal production
 = ov] #hj ye>s4  7#c7 ,9 ord] to ensure

 t all s\rces ( en]gy compete on an     
equal foot+1 z tax cr$its = r5ewable    
en]gy are phas$ out ov] ! next #d ye>s1 
fossil fuel tax pref]5ces %\ld be phas$ 
out on ! same s*$ule4  7b7 ,exp5s+ (    
intangible drill+ co/s ,section #bfc ( !
 ,int]nal ,rev5ue ,code ( #aihf is      
am5d$-- 7#a7 9 subsection 7c71 by /rik+ 
subsection 7i7 & ins]t+ subsections 7i7 
& 7j71 &  7#b7 by add+ at ! end ! foll[+
 new subsection3  7j7 ,phase out (      
d$uction = intangible drill+ co/s ,9 !  
case ( a dual capacity taxpay] :i* is a 
major integrat$ oil company 7)9 ! mean+ 
( section #afg7;h77#e771 = any          
intangible drill+ & developm5t co/s paid
 or incurr$ ) respect to an oil or gas  
well1 ! am\nt ( su* co/s all[$ z a      
d$uction "u subsection 7c7 %all be r$uc$
 by--  7#a7 9 ! case ( any co/s paid or 
incurr$ aft] ,decemb] #ca1 #bjaf1 & be=e
 ,janu>y #a1 #bjah1 #bj p]c5t1  7#b7 9 !
 case ( any co/s paid or incurr$ aft]   
,decemb] #ca1 #bjag1 & be=e ,janu>y #a1 
#bjai1 #dj p]c5t1  7#c7 9 ! case ( any  

co/s paid or incurr$ aft] ,decemb] #ca1 
#bjah1 & be=e ,janu>y #a1 #bjbj1 #fj    
p]c5t1 &  7#d7 9 ! case ( any co/s paid 
or incurr$ aft] ,decemb] #ca1 #bjai1    
#ajj p]c5t4  4  7c7 ,p]c5tage depletion 
= oil & natural gas wells ,section      
#fac;,a7d7 ( su* ,code is am5d$ by add+ 
at ! end ! foll[+ new p>agraph3  7#f7   
,phase out ( p]c5tage depletion = oil & 
natural gas wells ,9 ! case ( a dual    
capacity taxpay] :i* is a major         
integrat$ oil company 7)9 ! mean+ (     
section #afg7;h77#e771 ! am\nt all[$ z a
 d$uction = ! taxable ye> :i* is        
attributable to ! application (         
subsection 7c7 7det]m9$ aft] !          
application ( p>agraphs 7#a7 ?r\gh 7#e7 
( ?is subsection & )\t reg>d to ?is     
p>agraph7 %all be r$uc$ by--  7,a7 9 !  
case ( any crude oil or natural gas     
produc$ aft] ,decemb] #ca1 #bjaf1 & be=e
 ,janu>y #a1 #bjah1 #bj p]c5t1  7,b7 9 !
 case ( any crude oil or natural gas    
produc$ aft] ,decemb] #ca1 #bjag1 & be=e
 ,janu>y #a1 #bjai1 #dj p]c5t1  7,c7 9 !

 case ( any crude oil or natural gas    
produc$ aft] ,decemb] #ca1 #bjah1 & be=e
 ,janu>y #a1 #bjbj1 #fj p]c5t1 &  7,d7 9
 ! case ( any crude oil or natural gas  
produc$ aft] ,decemb] #ca1 #bjai1 #ajj  
p]c5t4  4  7d7 ,dome/ic manufactur+     
d$uction = fossil fuels ,section        
#aii7;d77#i7 ( su* ,code is am5d$ by    
add+ at ! end ! foll[+ new subp>agraph3 
7,d7 ,phase out ( d$uction = oil relat$ 
qualifi$ production activities income ,9
 ! case ( a dual capacity taxpay] :i* is
 a major integrat$ oil company 7)9 !    
mean+ ( section #afg7;h77#e771 ! am\nt  
all[able z a d$uction "u subsection 7a7 
7det]m9$ aft] ! application (           
subp>agraph 7,a7 & )\t reg>d to ?is     
subp>agraph7 %all be r$uc$ by--  7i7 9 !
 case ( any oil relat$ qualifi$         
production activities income receiv$ or 
accru$ aft] ,decemb] #ca1 #bjaf1 & be=e 
,janu>y #a1 #bjah1 #bj p]c5t1  7ii7 9 ! 
case ( any oil relat$ qualifi$          
production activities income receiv$ or 
accru$ aft] ,decemb] #ca1 #bjag1 & be=e 

,janu>y #a1 #bjai1 #dj p]c5t1  7iii7 9 !
 case ( any oil relat$ qualifi$         
production activities income receiv$ or 
accru$ aft] ,decemb] #ca1 #bjah1 & be=e 
,janu>y #a1 #bjbj1 #fj p]c5t1 &  7iv7 9 
! case ( any oil relat$ qualifi$        
production activities income receiv$ or 
accru$ aft] ,decemb] #ca1 #bjai1 #ajj   
p]c5t4  4  7e7 ,amortization (          
geological & geophysical exp5ditures    
,section #afg7;h7 ( su* ,code is am5d$  
by add+ at ! end ! foll[+ new p>agraph3 
7#f7 ,phase out ( amortization (        
geological & geophysical exp5ditures ,9 
! case ( a dual capacity taxpay] :i* is 
a major integrat$ oil company 7)9 !     
mean+ ( section #afg7;h77#e771 ! am\nt (
 geological & geophysical exp5ses paid  
or incurr$ by a taxpay] :i* are all[$ z 
a d$uction "u ?is subsection 7)\t reg>d 
to ?is p>agraph7 %all be r$uc$ by--     
7,a7 9 ! case ( any su* exp5ses paid or 
incurr$ aft] ,decemb] #ca1 #bjaf1 & be=e
 ,janu>y #a1 #bjah1 #bj p]c5t1  7,b7 9 !
 case ( any su* exp5ses paid or incurr$ 

aft] ,decemb] #ca1 #bjag1 & be=e ,janu>y
 #a1 #bjai1 #dj p]c5t1  7,c7 9 ! case ( 
any su* exp5ses paid or incurr$ aft]    
,decemb] #ca1 #bjah1 & be=e ,janu>y #a1 
#bjbj1 #fj p]c5t1 &  7,d7 9 ! case ( any
 su* exp5ses paid or incurr$ aft]       
,decemb] #ca1 #bjai1 #ajj p]c5t4  4  7f7
 ,p]c5tage depletion = oil %ale ,section
 #fac ( su* ,code is am5d$ by add+ at ! 
end ! foll[+ new subsection3  7f7 ,phase
 out ( p]c5tage depletion = oil %ale ,9 
! case ( a dual capacity taxpay] :i* is 
a major integrat$ oil company 7)9 !     
mean+ ( section #afg7;h77#e771 !        
all[ance = depletion = oil %ale det]m9$ 
"u ?is section 7)\t reg>d to ?is        
subsection7 %all be r$uc$ by--  7#a7 9 !
 case ( any income receiv$ or accru$ f !
 prop]ty aft] ,decemb] #ca1 #bjaf1 &    
be=e ,janu>y #a1 #bjah1 #bj p]c5t1  7#b7
 9 ! case ( any income receiv$ or accru$
 f ! prop]ty aft] ,decemb] #ca1 #bjag1 &
 be=e ,janu>y #a1 #bjai1 #dj p]c5t1     
7#c7 9 ! case ( any income receiv$ or   
accru$ f ! prop]ty aft] ,decemb] #ca1   

#bjah1 & be=e ,janu>y #a1 #bjbj1 #fj    
p]c5t1 &  7#d7 9 ! case ( any income    
receiv$ or accru$ f ! prop]ty aft]      
,decemb] #ca1 #bjai1 #ajj p]c5t4  4  7g7
 ,exp5s+ ( exploration & developm5t co/s
 = oil %ale ,section #fag ( su* ,code is
 am5d$-- 7#a7 by r$esignat+ subsection  
7i7 z subsection 7j71 &  7#b7 by ins]t+ 
aft] subsection 7h7 ! foll[+ new        
subsection3  7i7 ,phase out ( exp5s+ (  
exploration & developm5t co/s = oil %ale
 ,9 ! case ( a dual capacity taxpay] :i*
 is a major integrat$ oil company 7)9 ! 
mean+ ( section #afg7;h77#e771 ! am\nt (
 exp5ditures relat$ to oil %ale :i* are 
all[$ z a d$uction "u subsection 7a7    
%all be r$uc$ by--  7#a7 9 ! case ( any 
su* exp5ditures paid or incurr$ aft]    
,decemb] #ca1 #bjaf1 & be=e ,janu>y #a1 
#bjah1 #bj p]c5t1  7#b7 9 ! case ( any  
su* exp5ditures paid or incurr$ aft]    
,decemb] #ca1 #bjag1 & be=e ,janu>y #a1 
#bjai1 #dj p]c5t1  7#c7 9 ! case ( any  
su* exp5ditures paid or incurr$ aft]    
,decemb] #ca1 #bjah1 & be=e ,janu>y #a1 

#bjbj1 #fj p]c5t1 &  7#d7 9 ! case ( any
 su* exp5ditures paid or incurr$ aft]   
,decemb] #ca1 #bjai1 #ajj p]c5t4  4  7h7
 ,capital ga9s treatm5t = royalties (   
coal ,section #fca ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7d7 ,phase out ( capital   
ga9s treatm5t = royalties ( coal ,9 !   
case ( coal 7includ+ lignite71 ! am\nt (
 ga9 or loss on ! sale ( su* coal to :i*
 subsection 7c7 applies %all be r$uc$   
by--  7#a7 9 ! case ( any su* ga9 or    
loss aft] ,decemb] #ca1 #bjaf1 & be=e   
,janu>y #a1 #bjah1 #bj p]c5t1  7#b7 9 ! 
case ( any su* ga9 or loss aft] ,decemb]
 #ca1 #bjag1 & be=e ,janu>y #a1 #bjai1  
#dj p]c5t1  7#c7 9 ! case ( any su* ga9 
or loss aft] ,decemb] #ca1 #bjah1 & be=e
 ,janu>y #a1 #bjbj1 #fj p]c5t1 &  7#d7 9
 ! case ( any su* ga9 or loss aft]      
,decemb] #ca1 #bjai1 #ajj p]c5t4  4  7i7
 ,d$uction = t]ti>y injectants ,section 
#aic ( su* ,code is am5d$ by add+ at !  
end ! foll[+ new subsection3  7d7 ,phase
 out ( d$uction = t]ti>y injectants ,9 !

 case ( a dual capacity taxpay] :i* is a
 major integrat$ oil company 7)9 ! mean+
 ( section #afg7;h77#e771 ! am\nt (     
qualifi$ t]ti>y injectant exp5ses       
all[able z a d$uction "u subsection 7a7 
%all be r$uc$ by--  7#a7 9 ! case ( any 
su* exp5ditures paid or incurr$ aft]    
,decemb] #ca1 #bjaf1 & be=e ,janu>y #a1 
#bjah1 #bj p]c5t1  7#b7 9 ! case ( any  
su* exp5ditures paid or incurr$ aft]    
,decemb] #ca1 #bjag1 & be=e ,janu>y #a1 
#bjai1 #dj p]c5t1  7#c7 9 ! case ( any  
su* exp5ditures paid or incurr$ aft]    
,decemb] #ca1 #bjah1 & be=e ,janu>y #a1 
#bjbj1 #fj p]c5t1 &  7#d7 9 ! case ( any
 su* exp5ditures paid or incurr$ aft]   
,decemb] #ca1 #bjai1 #ajj p]c5t4  4  7j7
 ,exception to passive loss limitation =
 work+ int]e/s 9 oil & natural gas      
prop]ties ,section #dfi7;c7 ( su* ,code 
is am5d$ by add+ at ! end ! foll[+ new  
p>agraph3  7#h7 ,phase out ( exception  
to passive loss limitation = work+      
int]e/s 9 oil & natural gas prop]ties ,9
 ! case ( a dual capacity taxpay] :i* is

 a major integrat$ oil company 7)9 !    
mean+ ( section #afg7;h77#e771 = any    
loss f a work+ int]e/ 9 any oil or gas  
prop]ty1 ! am\nt ( su* loss to :i*      
p>agraph 7#c7 applies %all be r$uc$ by--
  7,a7 9 ! case ( any su* loss aft]     
,decemb] #ca1 #bjaf1 & be=e ,janu>y #a1 
#bjah1 #bj p]c5t1  7,b7 9 ! case ( any  
su* loss aft] ,decemb] #ca1 #bjag1 &    
be=e ,janu>y #a1 #bjai1 #dj p]c5t1  7,c7
 9 ! case ( any su* loss aft] ,decemb]  
#ca1 #bjah1 & be=e ,janu>y #a1 #bjbj1   
#fj p]c5t1 &  7,d7 9 ! case ( any su*   
loss aft] ,decemb] #ca1 #bjai1 #ajj     
p]c5t4  4  7k7 ,m>g9al wells cr$it      
,section #de;,i7d7 ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#d7 ,phase out ( m>g9al wells cr$it ,9 
! case ( a dual capacity taxpay] :i* is 
a major integrat$ oil company 7)9 !     
mean+ ( section #afg7;h77#e771 ! am\nt (
 ! cr$it det]m9$ "u subsection 7a7 %all 
be r$uc$ by--  7,a7 9 ! case ( any      
qualifi$ crude oil production or        
qualifi$ natural gas production aft]    

,decemb] #ca1 #bjaf1 & be=e ,janu>y #a1 
#bjah1 #bj p]c5t1  7,b7 9 ! case ( any  
qualifi$ crude oil production or        
qualifi$ natural gas production aft]    
,decemb] #ca1 #bjag1 & be=e ,janu>y #a1 
#bjai1 #dj p]c5t1  7,c7 9 ! case ( any  
qualifi$ crude oil production or        
qualifi$ natural gas production aft]    
,decemb] #ca1 #bjah1 & be=e ,janu>y #a1 
#bjbj1 #fj p]c5t1 &  7,d7 9 ! case ( any
 qualifi$ crude oil production or       
qualifi$ natural gas production aft]    
,decemb] #ca1 #bjai1 #ajj p]c5t4  4