,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hdaa  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #bi1        
#bjbj,mr4 ,blum5au] 7= himself & ,mr4   
,ca/5 ( ,ill9ois7 introduc$ ! foll[+    
bill2 :i* 0 ref]r$ to ! ,committee on   
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to repeal
 fossil fuel subsidies = oil companies1 
& = o!r purposes4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,end ,oil & ,gas   
,tax ,subsidies ,act ( #bjbj4  #b4      
,amortization ( geological & geophysical
 exp5ditures  7a7 ,9 g5]al ,section     
#afg7;h7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$-- 7#a7 by /rik+ #bd-mon? 
p]iod 9 p>agraph 7#a7 & ins]t+ #g-ye>   
p]iod1 &  7#b7 by /rik+ p>agraph 7#e74  
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to am\nts paid or
 incurr$ 9 taxable ye>s beg9n+ aft]     
,decemb] #ca1 #bjbj4  #c4 ,produc+ oil &
 gas f m>g9al wells  7a7 ,9 g5]al       
,subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   

#aihf is am5d$ by /rik+ section #de;,i  
7& by /rik+ ! item relat+ to su* section
 9 ! table ( sections = su* subp>t74    
7b7 ,con=m+ am5dm5t ,section #ch7;b7 (  
su* ,code is am5d$ by /rik+ p>agraph    
7#ai74  7c7 ,effective date ,! am5dm5t  
made by subsection 7a7 %all apply to    
cr$its det]m9$ = taxable ye>s beg9n+    
aft] ,decemb] #ca1 #bjbj4  #d4 ,enhanc$ 
oil recov]y cr$it  7a7 ,9 g5]al ,subp>t 
,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by /rik+ section #dc 7& by /rik+ !
 item relat+ to su* section 9 ! table ( 
sections = su* subp>t74  7b7 ,con=m+    
am5dm5t ,section #ch7;b7 ( su* ,code is 
am5d$ by /rik+ p>agraph 7#f74  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid or    
incurr$ 9 taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjbj4  #e4 ,intangible   
drill+ & developm5t co/s 9 ! case ( oil 
& gas wells  7a7 ,9 g5]al ,subsection   
7c7 ( section #bfc ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by add+ at ! end 

! foll[+ new s5t5ce3 ,?is subsection    
%all n apply to am\nts paid or incurr$  
by a taxpay] ) respect to an oil or gas 
well aft] ,decemb] #ca1 #bjbj44  7b7    
,effective date ,! am5dm5t made by ?is  
section %all apply to am\nts paid or    
incurr$ 9 taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjbj4  #f4 ,repeal (     
p]c5tage depletion = oil & gas wells    
7a7 ,9 g5]al ,"p ,i ( sub*apt] ,i (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ section #fac;,a 
7& ! table ( sections ( su* "p is am5d$ 
by /rik+ ! item relat+ to su* section74 
7b7 ,con=m+ am5dm5ts  7#a7 ,subsection  
7d7 ( section #de;,h ( su* ,code is     
am5d$-- 7,a7 by /rik+ ,= purposes ( ?is 
section & ins]t+ ! foll[+3  7#a7 ,9     
g5]al ,= purposes ( ?is section  1  7,b7
 by /rik+ 7)9 ! mean+ ( section         
#fac;,a7d77#c771 &  7,c7 by add+ at !   
end ! foll[+ new p>agraph3  7#b7 ,relat$
 p]son ,= purposes ( ?is subsection1 a  
p]son is a relat$ p]son ) respect to !  
taxpay] if a significant own]%ip int]e/ 

9 ei!r ! taxpay] or su* p]son is held by
 ! o!r1 or if a ?ird p]son has a        
significant own]%ip int]e/ 9 bo? !      
taxpay] & su* p]son4 ,= purposes ( !    
prec$+ s5t5ce1 ! t]m significant own]%ip
 int]e/ means-- 7,a7 ) respect to any   
corporation1 #e p]c5t or m 9 value ( !  
out/&+ /ock ( su* corporation1  7,b7 )  
respect to a p>tn]%ip1 #e p]c5t or m    
int]e/ 9 ! pr(its or capital ( su*      
p>tn]%ip1 &  7,c7 ) respect to an e/ate 
or tru/1 #e p]c5t or m ( ! b5eficial    
int]e/s 9 su* e/ate or tru/4  ,=        
purposes ( det]m9+ a significant own]%ip
 int]e/1 an int]e/ own$ by or = a       
corporation1 p>tn]%ip1 tru/1 or e/ate   
%all be consid]$ z own$ directly bo? by 
itself & proportionately by its         
%>ehold]s1 p>tn]s1 or b5efici>ies1 z !  
case may be4  4  7#b7 ,section          
#eg7;a77#a7 ( su* ,code is am5d$ by     
/rik+ ! la/ s5t5ce4  7#c7 ,section      
#bia7;b77#d7 ( su* ,code is am5d$ by    
add+ at ! end ! foll[+3 ,any ref]5ce 9 !
 prec$+ s5t5ce to section #fac;,a %all  

be treat$ z a ref]5ce to su* section z 9
 effect prior to ! date ( ! enactm5t ( !
 ,end ,oil & ,gas ,tax ,subsidies ,act (
 #bjbj44  7#d7 ,section #fac7;d7 ( su*  
,code is am5d$ by /rik+ ,except z       
provid$ 9 section #fac;,a1 9 ! case ( & 
ins]t+ ,9 ! case (4  7#e7 ,section      
#fac7;e7 ( su* ,code is am5d$-- 7,a7 by 
/rik+ or section #fac;,a 9 p>agraph     
7#b71 &  7,b7 by /rik+ any am\nt        
describ$ 9 section #fac;,a7d77#e7 9     
p>agraph 7#c7 & ins]t+ any lease bonus1 
advance royalty1 or o!r am\nt payable   
)\t reg>d to production f prop]ty4  7#f7
 ,section #gje7;a7 ( su* ,code is       
am5d$-- 7,a7 by ins]t+ & at ! end (     
p>agraph 7#a77;,c71  7,b7 by /rik+ 2 &  
at ! end ( p>agraph 7#b77;,b7 & ins]t+ a
 p]iod1 &  7,c7 by /rik+ p>agraph 7#c74 
7#g7 ,section #iic7;c77#b77;,c7 ( su*   
,code is am5d$ by /rik+ section #fac or 
#fac;,a & ins]t+ section #fac 7det]m9$  
)\t reg>d to subsection 7d7 !re(74  7#h7
 ,section #abjb7;e77#c77;,d7 ( su* ,code
 is am5d$ by /rik+ section #fac or      

#fac;,a & ins]t+ section #fac 7det]m9$  
)\t reg>d to subsection 7d7 !re(74  7#i7
 ,section #acfg7;a77#b7 ( su* ,code is  
am5d$ by ins]t+ & at ! end ( subp>agraph
 7,c71 by /rik+ 1 & at ! end (          
subp>agraph 7,d7 & ins]t+ a p]iod1 & by 
/rik+ subp>agraph 7,e74  7#aj7 ,section 
#addf7;c7 ( su* ,code is am5d$ by /rik+ 
p>agraph 7#b7 & by r$esignat+ p>agraph  
7#c7 z p>agraph 7#b74  7c7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply to prop]ty plac$ 9 s]vice    
aft] ,decemb] #ca1 #bjbj4  #g4 ,repeal (
 d$uction = t]ti>y injectants  7a7 ,9   
g5]al ,"p ,,vi ( sub*apt] ,b ( *apt] #a 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by /rik+ section #aic 7& ! table (
 sections ( su* subp>t is am5d$ by /rik+
 ! item relat+ to su* section74  7b7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbj4  #h4   
,repeal ( exception to passive loss     
limitations = work+ int]e/s 9 oil & gas 
prop]ties  7a7 ,9 g5]al ,section        

#dfi7;c77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new subp>agraph3  7,c7 ,t]m9ation
 ,subp>agraph 7,a7 %all n apply )       
respect to any taxable ye> beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4  4  7b7  
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbj4  #i4   
,d$uction = qualifi$ bus9ess income n   
all[$ ) respect to oil & gas activities 
7a7 ,9 g5]al ,section                   
#aii;,a7c77#c77;,b7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by r$esignat+   
clause 7vii7 z clause 7viii71 & by      
ins]t+ aft] clause 7vi7 ! foll[+ new    
clause3  7vii7 ,! production1 ref9+1    
process+1 transportation1 or di/ribution
 ( oil1 gas1 or any prim>y product !re(4
  4  7b7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbj4  #aj4 ,prohibition on us+ la/-91 
fir/-out acc\nt+ = oil & gas companies  
7a7 ,9 g5]al ,section #dgb ( ! ,int]nal 

,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7h7  
,oil & gas companies  7#a7 ,9 g5]al     
,not)/&+ any o!r provision ( ?is        
section1 a major integrat$ oil company  
may n use ! me?od provid$ 9 subsection  
7b7 9 inv5tory+ ( any goods4  7#b7      
,major integrat$ oil company ,= purposes
 ( ?is subsection1 ! t]m major integrat$
 oil company means1 ) respect to any    
taxable ye>1 a produc] ( crude oil--    
7,a7 :i* has an av]age daily worldwide  
production ( crude oil ( at lea/        
#ejj1jjj b>rels = ! taxable ye>1  7,b7  
:i* has gross receipts 9 excess (       
#a1jjj1jjj1jjj = ! taxable ye>1 &  7,c7 
! av]age daily ref9]y runs ( ! taxpay] &
 relat$ p]sons = ! taxable ye> exce$    
#ge1jjj b>rels4  7#c7 ,special rules    
7,a7 ,crude production & gross receipts 
,= purposes ( subp>agraphs 7,a7 & 7,b7 (
 p>agraph 7#b7-- 7i7 ,controll$ gr\ps & 
common control ,all p]sons treat$ z a   
s+le employ] "u subsections 7a7 & 7b7 ( 
section #eb %all be treat$ z #a p]son4  

7ii7 ,%ort taxable ye>s ,9 case ( a %ort
 taxable ye>1 ! rule "u section         
#ddh7;c77#c77;,b7 %all apply4  7,b7     
,av]age daily ref9]y runs ,= purposes ( 
p>agraph 7#b77;,c7-- 7i7 ,9 g5]al ,!    
av]age daily ref9]y runs = any taxable  
ye> %all be det]m9$ by divid+ !         
aggregate ref9]y runs = ! taxable ye> by
 ! numb] ( days 9 ! taxable ye>4  7ii7  
,relat$ p]sons ,a p]son is a relat$     
p]son ) respect to ! taxpay] if a       
significant own]%ip int]e/ 9 ei!r !     
taxpay] or su* p]son is held by ! o!r1  
or if a ?ird p]son has a significant    
own]%ip int]e/ 9 bo? ! taxpay] & su*    
p]son4  7iii7 ,significant own]%ip      
int]e/ ,= purposes ( clause 7ii71 ! t]m 
significant own]%ip int]e/ means-- 7,i7 
) respect to any corporation1 #ae p]c5t 
or m 9 value ( ! out/&+ /ock ( su*      
corporation1  7,,ii7 ) respect to a     
p>tn]%ip1 #ae p]c5t or m int]e/ 9 !     
pr(its or capital ( su* p>tn]%ip1 &     
7,,iii7 ) respect to an e/ate or tru/1  
#ae p]c5t or m ( ! b5eficial int]e/s 9  

su* e/ate or tru/4  ,= purposes (       
det]m9+ a significant own]%ip int]e/1 an
 int]e/ own$ by or = a corporation1     
p>tn]%ip1 tru/1 or e/ate %all be        
consid]$ z own$ directly bo? by itself &
 proportionately by its %>ehold]s1      
p>tn]s1 or b5efici>ies1 z ! case may be4
  4  7b7 ,effective date & special rule 
7#a7 ,9 g5]al ,! am5dm5t made by        
subsection 7a7 %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4   
7#b7 ,*ange 9 me?od ( acc\nt+ ,9 ! case 
( any taxpay] requir$ by ! am5dm5t made 
by ?is section to *ange its me?od (     
acc\nt+ = its fir/ taxable ye> beg9n+   
aft] ! date ( ! enactm5t ( ?is ,act--   
7,a7 su* *ange %all be treat$ z initiat$
 by ! taxpay]1  7,b7 su* *ange %all be  
treat$ z made ) ! cons5t ( ! ,secret>y (
 ! ,treasury1 &  7,c7 ! net am\nt ( !   
adju/m5ts requir$ to be tak5 into acc\nt
 by ! taxpay] "u section #dha ( !       
,int]nal ,rev5ue ,code ( #aihf %all be  
tak5 into acc\nt ratably ov] a p]iod 7n 
great] ?an #h taxable ye>s7 beg9n+ ) su*

 fir/ taxable ye>4  #aa4 ,modifications 
( =eign tax cr$it rules applicable to   
dual capacity taxpay]s  7a7 ,9 g5]al    
,section #ija ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by r$esignat+         
subsection 7n7 z subsection 7o7 & by    
ins]t+ aft] subsection 7m7 ! foll[+ new 
subsection3  7n7 ,special rules relat+  
to dual capacity taxpay]s  7#a7 ,g5]al  
rule ,not)/&+ any o!r provision ( ?is   
*apt]1 any am\nt paid or accru$ by a    
dual capacity taxpay] to a =eign c\ntry 
or possession ( ! ,unit$ ,/ates = any   
p]iod ) respect to comb9$ =eign oil &   
gas income 7z def9$ 9 section           
#ijg7;b77#a77 %all n be consid]$ a tax  
to ! ext5t su* am\nt exce$s ! am\nt     
7det]m9$ 9 accordance ) regulations7 :i*
 w\ld h be5 requir$ to be paid if !     
taxpay] 7 n a dual capacity taxpay]4    
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  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] ,decemb] #ca1 #bjbj4  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  #ab4     
,cl>ification ( t> s&s z crude oil =    
excise tax purposes  7a7 ,9 g5]al       
,p>agraph 7#a7 ( section #dfab7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7#a7 ,crude oil ,!   
t]m crude oil includes crude oil        
cond5sates1 natural gasol9e1 any bitum5 
or bitum9\s mixture1 any oil d]iv$ f a  
bitum5 or bitum9\s mixture 7includ+ oil 
d]iv$ f t> s&s71 & any oil d]iv$ f      
k]og5-be>+ s\rces 7includ+ oil d]iv$ f  
oil %ale74  4  7b7 ,regulatory au?ority 

,to address o!r types ( crude oil &     
petroleum products ,subsection 7a7 (    
section #dfab ( su* ,code is am5d$ by   
add+ at ! end ! foll[+ new p>agraph3    
7#aj7 ,regulatory au?ority to address   
o!r types ( crude oil & petroleum       
products ,"u su* regulations z !        
,secret>y may prescribe1 ! ,secret>y may
 include z crude oil or z a petroleum   
product subject to tax "u section #dfaa1
 any fuel fe$/ock or f9i%$ fuel product 
cu/om>ily transport$ by pipel9e1 vessel1
 railc>1 or tank] truck if ! ,secret>y  
det]m9es t-- 7,a7 ! classification ( su*
 fuel fe$/ock or f9i%$ fuel product is  
consi/5t ) ! def9ition ( oil "u ! ,oil  
,pollution ,act ( #aiij1 &  7,b7 su*    
fuel fe$/ock or f9i%$ fuel product is   
produc$ 9 suffici5t comm]cial quantities
 z to pose a significant risk ( haz>d 9 
! ev5t ( a dis*>ge4  4  7c7 ,te*nical   
am5dm5t ,p>agraph 7#b7 ( section        
#dfab7;a7 ( su* ,code is am5d$ by /rik+ 
f a well locat$4  7d7 ,effective date ,!
 am5dm5ts made by ?is section %all take 

effect on ! date ( ! enactm5t ( ?is     
,act4