,i #aafth ,,congress #ast ,session ,h4 ,r4 #hhj ,,in ,,the ,,house ,,of ,,representatives ,january #cj1 #bjai,ms4 ,brownley of ,california introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,transportation and ,infrastructure1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to repeal loopholes for major integrated oil companies1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,surface ,transportation ,investment ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,title ,i--,close big oil tax loopholes ,sec4 #b4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers4 ,sec4 #c4 ,limitation on deduction for intangible drilling and development costs2 amortization of disallowed amounts4 ,sec4 #d4 ,limitation on percentage depletion allowance for oil and gas wells4 ,sec4 #e4 ,limitation on deduction for tertiary injectants4 ,sec4 #f4 ,modification of definition of major integrated oil company4 ,title ,,ii--,transportation block grants ,sec4 #bja4 ,use of revenue for transportation block grants4 ,i ,close big oil tax loopholes #b4 ,modifications of foreign tax credit rules applicable to major integrated oil companies which are 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 major integrated oil companies which are dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company 7within the meaning of section #afg7;h77#e77 to a foreign country or possession of the ,united ,states for any period shall not be considered a tax-- 7,a7 if1 for such period1 the foreign country or possession does not impose a generally applicable income tax1 or 7,b7 to the extent such amount exceeds the amount 7determined in accordance with regulations7 which-- 7i7 is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession1 or 7ii7 would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer4 ,nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph 7,b74 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 7#c7 ,generally applicable income tax ,for purposes of this subsection-- 7,a7 ,in general ,the term generally applicable income tax means an income tax 7or a series of income taxes7 which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession4 7,b7 ,exceptions ,such term shall not include a tax unless it has substantial application1 by its terms and in practice1 to-- 7i7 persons who are not dual capacity taxpayers1 and 7ii7 persons who are citizens or residents of the foreign 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 the date of the enactment of this ,act4 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 #c4 ,limitation on deduction for intangible drilling and development costs2 amortization of disallowed amounts 7a7 ,in general ,section #bfc7;c7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7c7 ,intangible drilling and development costs in the case of oil and gas wells and geothermal wells 7#a7 ,in general ,notwithstanding subsection 7a71 and except as provided in subsection 7i71 regulations shall be prescribed by the ,secretary under this subtitle corresponding to the regulations which granted the option to deduct as expenses intangible drilling and development costs in the case of oil and gas wells and which were recognized and approved by the ,congress in ,house ,concurrent ,resolution #ej1 ,seventy-ninth ,congress4 ,such regulations shall also grant the option to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit 7as defined in section #fac7;e77#b77 to the same extent and in the same manner as such expenses are deductible in the case of oil and gas wells4 ,this subsection shall not apply with respect to any costs to which any deduction is allowed under section #ei7;e7 or #bia4 7#b7 ,exclusion 7,a7 ,in general ,this subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7within the meaning of section #afg7;h77#e774 7,b7 ,amortization of amounts not allowable as deductions under subparagraph 7,a7 ,the amount not allowable as a deduction for any taxable year by reason of subparagraph 7,a7 shall be allowable as a deduction ratably over the #fj-month period beginning with the month in which the costs are paid or incurred4 ,for purposes of section #abed1 any deduction under this subparagraph shall be treated as a deduction under this subsection4 4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjai4 #d4 ,limitation on percentage depletion allowance for oil and gas wells 7a7 ,in general ,section #fac;,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,application with respect to major integrated oil companies ,in the case of any taxable year in which the taxpayer is a major integrated oil company 7within the meaning of section #afg7;h77#e771 the allowance for percentage depletion shall be zero4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #e4 ,limitation on deduction for tertiary injectants 7a7 ,in general ,section #aic of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7d7 ,application with respect to major integrated oil companies 7#a7 ,in general ,this section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company 7within the meaning of section #afg7;h77#e774 7#b7 ,amortization of amounts not allowable as deductions under paragraph 7#a7 ,the amount not allowable as a deduction for any taxable year by reason of paragraph 7#a7 shall be allowable as a deduction ratably over the #fj-month period beginning with the month in which the costs are paid or incurred4 4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjai4 #f4 ,modification of definition of major integrated oil company 7a7 ,in general ,section #afg7;h77#e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,certain successors in interest ,for purposes of this paragraph1 the term major integrated oil company includes any successor in interest of a company that was described in subparagraph 7,b7 in any taxable year1 if such successor controls more than #ej percent of the crude oil production or natural gas production of such company4 4 7b7 ,conforming amendments 7#a7 ,in general ,section #afg7;h77#e77;,b7 of the ,internal ,revenue ,code of #aihf is amended by inserting except as provided in subparagraph 7,c71 after ,for purposes of this paragraph14 7#b7 ,taxable years tested ,section #afg7;h77#e77;,b77iii7 of such ,code is amended-- 7,a7 by striking does not apply by reason of paragraph 7#d7 of section #fac;,a7d7 and inserting did not apply by reason of paragraph 7#d7 of section #fac;,a7d7 for any taxable year after #bjjd1 and 7,b7 by striking does not apply in subclause 7,,ii7 and inserting did not apply for the taxable year4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 ,,ii ,transportation block grants #bja4 ,use of revenue for transportation block grants 7a7 ,in general ,subchapter ,a of chapter #ih of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ieab4 ,transportation ,block ,grant ,fund 7a7 ,establishment ,there is established in the ,treasury a fund to be known as the ,transportation ,block ,grant ,fund consisting of such amounts as may be appropriated or credited to the fund as provided in this section or section #ifjb7;b74 7b7 ,transfer to fund ,there is hereby appropriated to the fund such amounts as the ,secretary estimates are equivalent to the increase in revenue received in the ,treasury by reason of the enactment of title ,i of the ,surface ,transportation ,investment ,act of #bjai1 and the amendments made thereby4 7c7 ,expenditures from the fund ,amounts in the fund shall be available for making grants under the surface transportation block grant program established under section #acc of title #bc1 ,united ,states ,code4 4 7b7 ,clerical amendment ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following new item3 ,sec4 #ieab4 ,transportation ,block ,grant ,fund4 4