,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hdaa ,,in ,,the ,,house ,,of ,,representatives ,september #bi1 #bjbj,mr4 ,blumenauer 7for himself and ,mr4 ,casten of ,illinois7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to repeal fossil fuel subsidies for oil companies1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,end ,oil and ,gas ,tax ,subsidies ,act of #bjbj4 #b4 ,amortization of geological and geophysical expenditures 7a7 ,in general ,section #afg7;h7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #bd-month period in paragraph 7#a7 and inserting #g-year period1 and 7#b7 by striking paragraph 7#e74 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjbj4 #c4 ,producing oil and gas from marginal wells 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by striking section #de;,i 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendment ,section #ch7;b7 of such ,code is amended by striking paragraph 7#ai74 7c7 ,effective date ,the amendment made by subsection 7a7 shall apply to credits determined for taxable years beginning after ,december #ca1 #bjbj4 #d4 ,enhanced oil recovery credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by striking section #dc 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendment ,section #ch7;b7 of such ,code is amended by striking paragraph 7#f74 7c7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjbj4 #e4 ,intangible drilling and development costs in the case of oil and gas wells 7a7 ,in general ,subsection 7c7 of section #bfc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,this subsection shall not apply to amounts paid or incurred by a taxpayer with respect to an oil or gas well after ,december #ca1 #bjbj44 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjbj4 #f4 ,repeal of percentage depletion for oil and gas wells 7a7 ,in general ,part ,i of subchapter ,i of chapter #a of the ,internal ,revenue ,code of #aihf is amended by striking section #fac;,a 7and the table of sections of such part is amended by striking the item relating to such section74 7b7 ,conforming amendments 7#a7 ,subsection 7d7 of section #de;,h of such ,code is amended-- 7,a7 by striking ,for purposes of this section and inserting the following3 7#a7 ,in general ,for purposes of this section 1 7,b7 by striking 7within the meaning of section #fac;,a7d77#c771 and 7,c7 by adding at the end the following new paragraph3 7#b7 ,related person ,for purposes of this subsection1 a person is a related person with respect to the taxpayer if a significant ownership interest in either the taxpayer or such person is held by the other1 or if a third person has a significant ownership interest in both the taxpayer and such person4 ,for purposes of the preceding sentence1 the term significant ownership interest means-- 7,a7 with respect to any corporation1 #e percent or more in value of the outstanding stock of such corporation1 7,b7 with respect to a partnership1 #e percent or more interest in the profits or capital of such partnership1 and 7,c7 with respect to an estate or trust1 #e percent or more of the beneficial interests in such estate or trust4 ,for purposes of determining a significant ownership interest1 an interest owned by or for a corporation1 partnership1 trust1 or estate shall be considered as owned directly both by itself and proportionately by its shareholders1 partners1 or beneficiaries1 as the case may be4 4 7#b7 ,section #eg7;a77#a7 of such ,code is amended by striking the last sentence4 7#c7 ,section #bia7;b77#d7 of such ,code is amended by adding at the end the following3 ,any reference in the preceding sentence to section #fac;,a shall be treated as a reference to such section as in effect prior to the date of the enactment of the ,end ,oil and ,gas ,tax ,subsidies ,act of #bjbj44 7#d7 ,section #fac7;d7 of such ,code is amended by striking ,except as provided in section #fac;,a1 in the case of and inserting ,in the case of4 7#e7 ,section #fac7;e7 of such ,code is amended-- 7,a7 by striking or section #fac;,a in paragraph 7#b71 and 7,b7 by striking any amount described in section #fac;,a7d77#e7 in paragraph 7#c7 and inserting any lease bonus1 advance royalty1 or other amount payable without regard to production from property4 7#f7 ,section #gje7;a7 of such ,code is amended-- 7,a7 by inserting and at the end of paragraph 7#a77;,c71 7,b7 by striking 2 and at the end of paragraph 7#b77;,b7 and inserting a period1 and 7,c7 by striking paragraph 7#c74 7#g7 ,section #iic7;c77#b77;,c7 of such ,code is amended by striking section #fac or #fac;,a and inserting section #fac 7determined without regard to subsection 7d7 thereof74 7#h7 ,section #abjb7;e77#c77;,d7 of such ,code is amended by striking section #fac or #fac;,a and inserting section #fac 7determined without regard to subsection 7d7 thereof74 7#i7 ,section #acfg7;a77#b7 of such ,code is amended by inserting and at the end of subparagraph 7,c71 by striking 1 and at the end of subparagraph 7,d7 and inserting a period1 and by striking subparagraph 7,e74 7#aj7 ,section #addf7;c7 of such ,code is amended by striking paragraph 7#b7 and by redesignating paragraph 7#c7 as paragraph 7#b74 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjbj4 #g4 ,repeal of deduction for tertiary injectants 7a7 ,in general ,part ,,vi of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by striking section #aic 7and the table of sections of such subpart is amended by striking the item relating to such section74 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #h4 ,repeal of exception to passive loss limitations for working interests in oil and gas properties 7a7 ,in general ,section #dfi7;c77#c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,termination ,subparagraph 7,a7 shall not apply with respect to any taxable year beginning after the date of the enactment of this ,act4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #i4 ,deduction for qualified business income not allowed with respect to oil and gas activities 7a7 ,in general ,section #aii;,a7c77#c77;,b7 of the ,internal ,revenue ,code of #aihf is amended by redesignating clause 7vii7 as clause 7viii71 and by inserting after clause 7vi7 the following new clause3 7vii7 ,the production1 refining1 processing1 transportation1 or distribution of oil1 gas1 or any primary product thereof4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #aj4 ,prohibition on using last-in1 first-out accounting for oil and gas companies 7a7 ,in general ,section #dgb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7h7 ,oil and gas companies 7#a7 ,in general ,notwithstanding any other provision of this section1 a major integrated oil company may not use the method provided in subsection 7b7 in inventorying of any goods4 7#b7 ,major integrated oil company ,for purposes of this subsection1 the term major integrated oil company means1 with respect to any taxable year1 a producer of crude oil-- 7,a7 which has an average daily worldwide production of crude oil of at least #ejj1jjj barrels for the taxable year1 7,b7 which has gross receipts in excess of #a1jjj1jjj1jjj for the taxable year1 and 7,c7 the average daily refinery runs of the taxpayer and related persons for the taxable year exceed #ge1jjj barrels4 7#c7 ,special rules 7,a7 ,crude production and gross receipts ,for purposes of subparagraphs 7,a7 and 7,b7 of paragraph 7#b7-- 7i7 ,controlled groups and common control ,all persons treated as a single employer under subsections 7a7 and 7b7 of section #eb shall be treated as #a person4 7ii7 ,short taxable years ,in case of a short taxable year1 the rule under section #ddh7;c77#c77;,b7 shall apply4 7,b7 ,average daily refinery runs ,for purposes of paragraph 7#b77;,c7-- 7i7 ,in general ,the average daily refinery runs for any taxable year shall be determined by dividing the aggregate refinery runs for the taxable year by the number of days in the taxable year4 7ii7 ,related persons ,a person is a related person with respect to the taxpayer if a significant ownership interest in either the taxpayer or such person is held by the other1 or if a third person has a significant ownership interest in both the taxpayer and such person4 7iii7 ,significant ownership interest ,for purposes of clause 7ii71 the term significant ownership interest means-- 7,i7 with respect to any corporation1 #ae percent or more in value of the outstanding stock of such corporation1 7,,ii7 with respect to a partnership1 #ae percent or more interest in the profits or capital of such partnership1 and 7,,iii7 with respect to an estate or trust1 #ae percent or more of the beneficial interests in such estate or trust4 ,for purposes of determining a significant ownership interest1 an interest owned by or for a corporation1 partnership1 trust1 or estate shall be considered as owned directly both by itself and proportionately by its shareholders1 partners1 or beneficiaries1 as the case may be4 4 7b7 ,effective date and special rule 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply to taxable years beginning after ,december #ca1 #bjbj4 7#b7 ,change in method of accounting ,in the case of any taxpayer required by the amendment made by this section to change its method of accounting for its first taxable year beginning after the date of the enactment of this ,act-- 7,a7 such change shall be treated as initiated by the taxpayer1 7,b7 such change shall be treated as made with the consent of the ,secretary of the ,treasury1 and 7,c7 the net amount of the adjustments required to be taken into account by the taxpayer under section #dha of the ,internal ,revenue ,code of #aihf shall be taken into account ratably over a period 7not greater than #h taxable years7 beginning with such first taxable year4 #aa4 ,modifications of foreign tax credit rules applicable to dual capacity taxpayers 7a7 ,in general ,section #ija of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 any amount paid or accrued by a dual capacity taxpayer to a foreign country or possession of the ,united ,states for any period with respect to combined foreign oil and gas income 7as defined in section #ijg7;b77#a77 shall not be considered a tax to the extent such amount exceeds the amount 7determined in accordance with regulations7 which would have been required to be paid if the taxpayer were not a dual capacity taxpayer4 7#b7 ,dual capacity taxpayer ,for purposes of this subsection1 the term dual capacity taxpayer means1 with respect to any foreign country or possession of the ,united ,states1 a person who-- 7,a7 is subject to a levy of such country or possession1 and 7,b7 receives 7or will receive7 directly or indirectly a specific economic benefit 7as determined in accordance with regulations7 from such country or possession4 4 7b7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after ,december #ca1 #bjbj4 7#b7 ,contrary treaty obligations upheld ,the amendments made by this section shall not apply to the extent contrary to any treaty obligation of the ,united ,states4 #ab4 ,clarification of tar sands as crude oil for excise tax purposes 7a7 ,in general ,paragraph 7#a7 of section #dfab7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,crude oil ,the term crude oil includes crude oil condensates1 natural gasoline1 any bitumen or bituminous mixture1 any oil derived from a bitumen or bituminous mixture 7including oil derived from tar sands71 and any oil derived from kerogen-bearing sources 7including oil derived from oil shale74 4 7b7 ,regulatory authority ,to address other types of crude oil and petroleum products ,subsection 7a7 of section #dfab of such ,code is amended by adding at the end the following new paragraph3 7#aj7 ,regulatory authority to address other types of crude oil and petroleum products ,under such regulations as the ,secretary may prescribe1 the ,secretary may include as crude oil or as a petroleum product subject to tax under section #dfaa1 any fuel feedstock or finished fuel product customarily transported by pipeline1 vessel1 railcar1 or tanker truck if the ,secretary determines that-- 7,a7 the classification of such fuel feedstock or finished fuel product is consistent with the definition of oil under the ,oil ,pollution ,act of #aiij1 and 7,b7 such fuel feedstock or finished fuel product is produced in sufficient commercial quantities as to pose a significant risk of hazard in the event of a discharge4 4 7c7 ,technical amendment ,paragraph 7#b7 of section #dfab7;a7 of such ,code is amended by striking from a well located4 7d7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4