,,ii #aae? ,,congress #b;d ,session ,s4 #chjd ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #ba1 #bjah ,ms4 ,duckwor? introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to re9/ate ! taxation ( =eign oil relat$ income1 & = o!r purposes4 #a4 ,treatm5t ( =eign oil relat$ income z subp>t ,f income 7a7 ,9 g5]al ,section #ied7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( p>agraph 7#b71 by /rik+ ! p]iod at ! end ( p>agraph 7#c7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new p>agraph3 7#d7 ! =eign base company oil relat$ income = ! taxable ye> 7det]m9$ "u subsection 7g7 & r$uc$ z provid$ 9 subsection 7b77#e774 4 7b7 ,=eign base company oil relat$ income ,section #ied ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] subsection 7e7 ! foll[+ new subsection3 7g7 ,=eign base company oil relat$ income ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,except z o!rwise provid$ 9 ?is subsection1 ! t]m =eign base company oil relat$ income means =eign oil relat$ income 7)9 ! mean+ ( p>agraphs 7#b7 & 7#c7 ( section #ijg7;c77 o!r ?an income d]iv$ f a s\rce )9 a =eign c\ntry 9 connection )-- 7,a7 oil or gas :i* 0 extract$ f an oil or gas well locat$ 9 su* =eign c\ntry1 or 7,b7 oil1 gas1 or a prim>y product ( oil or gas :i* is sold by ! =eign corporation or a relat$ p]son = use or consumption )9 su* c\ntry or is load$ 9 su* c\ntry on a vessel or aircraft z fuel = su* vessel or aircraft4 ,su* t]m %all n include any =eign p]sonal hold+ company income 7z def9$ 9 subsection 7c774 7#b7 ,p>agraph 7#a7 applies only :]e corporation has produc$ #a1jjj b>rels p] day or m 7,a7 ,9 g5]al ,! t]m =eign base company oil relat$ income %all n include any income ( a =eign corporation if su* corporation is n a l>ge oil produc] = ! taxable ye>4 7,b7 ,l>ge oil produc] ,= purposes ( subp>agraph 7,a71 ! t]m l>ge oil produc] means any corporation if1 = ! taxable ye> or = ! prec$+ taxable ye>1 ! av]age daily production ( =eign crude oil & natural gas ( ! relat$ gr\p :i* includes su* corporation equal$ or exce$$ #a1jjj b>rels4 7,c7 ,relat$ gr\p ,! t]m relat$ gr\p means a gr\p consi/+ ( ! =eign corporation & any o!r p]son :o is a relat$ p]son ) respect to su* corporation4 7,d7 ,av]age daily production ( =eign crude oil & natural gas ,= purposes ( ?is p>agraph1 ! av]age daily production ( =eign crude oil or natural gas ( any relat$ gr\p = any taxable ye> 7& ! conv]sion ( cubic feet ( natural gas into b>rels7 %all be det]m9$ "u rules simil> to ! rules ( section #fac;,a except t only crude oil or natural gas f a well locat$ outside ! ,unit$ ,/ates %all be tak5 into acc\nt4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,section #ieb7;c77#a77;,b77iii7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subclauses 7,i7 ?r\gh 7,,iv7 z subclause 7,,ii7 ?r\gh 7,v71 respectively1 & by ins]t+ be=e subclause 7,,ii7 7z s r$esignat$7 ! foll[+3 7,i7 =eign base company oil relat$ income1 4 7#b7 ,section #ied7;b7 ( su* ,code is am5d$-- 7,a7 by ins]t+ at ! end ( p>agraph 7#d7 ! foll[+3 ,! prec$+ s5t5ce %all n apply to =eign base company oil-relat$ income describ$ 9 subsection 7a77#d741 7,b7 by /rik+ & ! =eign base company s]vices income 9 p>agraph 7#e7 & ins]t+ ! =eign base company s]vices income1 & ! =eign base company oil relat$ income1 & 7,c7 by add+ at ! end ! foll[+ new p>agraph3 7#f7 ,=eign base company oil relat$ income n treat$ z ano!r k9d ( base company income ,income ( a corporation :i* is =eign base company oil relat$ income %all n be consid]$ =eign base company income ( su* corporation "u p>agraph 7#b7 or 7#c7 ( subsection 7a74 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s ( =eign corporations beg9n+ aft] ! date ( ! enactm5t ( ?is ,act & to taxable ye>s ( ,unit$ ,/ates %>ehold]s end+ ) or )9 :i* su* taxable ye>s ( =eign corporations end4