,,ii  #aag? ,,congress  #b;d ,session   
,s4 #dgfh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #d1 #bjbb,mr4   
,wyd5 7= himself1 ,mr4 ,s*um]1 ,mrs4    
,murray1 ,ms4 ,/ab5[1 ,mr4 ,casey1 ,mr4 
,padilla1 ,ms4 ,hirono1 ,mr4 ,book]1    
,ms4 ,klobu*>1 ,mr4 ,re$1 ,mr4 ,w>nock1 
,mrs4 ,fe9/e91 ,mr4 ,blum5?al1 & ,mr4   
,van ,holl57 introduc$ ! foll[+ bill2   
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 tax excess pr(its ( l>ge oil & gas     
companies1 to impose a tax on !         
repur*ase ( /ock by l>ge oil & gas      
companies1 to end ! use ( ! ,,lifo me?od
 ( acc\nt+ by l>ge oil & gas trades or  
bus9esses1 & = o!r purposes4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,tax+   
,big ,oil ,pr(ite]s ,act4  #b4 ,tax on  
excess pr(its ( c]ta9 taxpay]s f oil &  
gas  7a7 ,9 g5]al ,sub*apt] ,a ( *apt]  
#a ( ! ,int]nal ,rev5ue ,code ( #aihf is
 am5d$ by add+ at ! end ! foll[+ new "p3
  ,,viii ,w9dfall pr(its f oil & gas    

,sec4 #ei;,b4 ,tax on oil & gas excess  
pr(its4  #ei;,b4 ,tax on oil & gas      
excess pr(its  7a7 ,imposition ( tax    
7#a7 ,9 g5]al ,9 addition to any o!r tax
 impos$ "u ?is *apt]1 !re is h]eby      
impos$ on ea* applicable taxpay] = any  
taxable ye> a tax equal to #ba p]c5t ( !
 excess pr(its ( su* taxpay] = su*      
taxable ye>4  7#b7 ,excess pr(its ,=    
purposes ( ?is subsection1 ! t]m excess 
pr(its means1 ) respect to any taxable  
ye>1 ! excess (-- 7,a7 ! curr5t pr(its (
 ! taxpay] = ! taxable ye>1 ov]  7,b7 ! 
normal return ( ! taxpay] = ! taxable   
ye>4  7b7 ,applicable taxpay] ,=        
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m applicable taxpay] means1 )      
respect to any taxable ye>1 any p]son   
if-- 7,a7 ! av]age annual gross receipts
 ( su* p]son = ! #c-taxable-ye> p]iod   
end+ ) ! taxable ye> :i* prec$es su*    
taxable ye> equals or exce$s            
#a1jjj1jjj1jjj1 &  7,b7 su* p]son is    
prim>ily engag$ 9 #a or m oil or natural
 gas trades or bus9esses dur+ ! taxable 

ye>4  7#b7 ,special rules = applicable  
entities  7,a7 ,9 g5]al ,if an entity is
 an applicable entity 7z def9$ 9        
subsection 7e77 = any taxable ye>-- 7i7 
except z provid$ 9 p>agraphs 7#a77;,a7 &
 7#b77;,b7 ( subsection 7e71 su* entity 
%all n be treat$ z an applicable taxpay]
 = purposes ( ?is section1 b  7ii7 any  
allocable %>e ( a cov]$ taxpay] ( any   
excess pr(its ( su* entity = su* taxable
 ye> 7z det]m9$ "u subsection 7e77 %all 
be tak5 into acc\nt by su* taxpay] "u   
subsection 7a77#a7-- 7,i7 z excess      
pr(its ( su* taxpay] = ! taxable ye> (  
su* taxpay] ) or )9 :i* su* taxable ye> 
( su* entity ends1 &  7,,ii7 9 ! same   
mann] z if su* taxpay] 7 an applicable  
taxpay]4  7,b7 ,cov]$ taxpay] ,=        
purposes ( ?is section1 ! t]m cov]$     
taxpay] means1 ) respect to any taxable 
ye>-- 7i7 a taxpay] :o is an individual 
7o!r ?an an e/ate or tru/7 & ^: adju/$  
gross income = su* taxable ye> exce$s   
#djj1jjj 7#bjj1jjj 9 ! case ( a m>ri$   
individual fil+ sep>ately71  7ii7 an    

e/ate or tru/1 or  7iii7 a ,c           
corporation :i* is n an applicable      
taxpay]4  7#c7 ,oil or natural gas trade
 or bus9ess ,! t]m oil or natural gas   
trade or bus9ess means any trade or     
bus9ess t consi/s ( "o or m ( ! foll[+3 
7,a7 ,! production ( oil or natural gas4
  7,b7 ,! ref9+ ( oil or natural gas4   
7,c7 ,! process+ ( oil or natural gas4  
7,d7 ,! transportation ( oil or natural 
gas4  7,e7 ,! di/ribution ( oil or      
natural gas4  7#d7 ,applicable rules    
relat+ to gross receipts ,= purposes (  
p>agraph 7#a77;,a7-- 7,a7 except z      
provid$ 9 subsection 7f71 !re %all be   
tak5 into acc\nt only gross receipts :i*
 are effectively connect$ ) ! conduct ( 
a trade or bus9ess )9 ! ,unit$ ,/ates1 !
 ,commonweal? ( ,pu]to ,rico1 or any    
possession ( ! ,unit$ ,/ates1 &  7,b7   
rules simil> to ! rules ( p>agraphs 7#b7
 & 7#c7 ( section #ddh7;c7 %all apply4  
7c7 ,curr5t pr(its ,= purposes ( ?is    
section1 ! t]m curr5t pr(its means1 )   
respect to any applicable taxpay] = any 

taxable ye>1 ! taxable income ( !       
taxpay] comput$ "u ?is *apt] = su*      
taxable ye>1 det]m9$ ) ! foll[+         
modifications3 7#a7 ,no net op]at+ loss 
d$uction ,no net op]at+ loss d$uction   
%all be all[$4  7#b7 ,d$uction =        
employee remun]ation  7,a7 ,9 g5]al     
,section #afb7m7 %all be appli$-- 7i7 by
 sub/itut+ ,9 ! case ( any applicable   
taxpay] 7z def9$ 9 section #ei;,b7 = ,9 
! case ( any publicly held corporation 9
 p>agraph 7#a7 !re(1  7ii7 by sub/itut+ 
cov]$ individual 7z def9$ 9 section     
#ei;,b7c77#b77;,b77 = cov]$ employee ea*
 place x appe>s 9 p>agraphs 7#a7 & 7#d7 
!re(1 &  7iii7 by treat+ any ref]5ce to 
an employee 9 p>agraphs 7#a7 & 7#d7 !re(
 z a ref]5ce to an individual4  7,b7    
,cov]$ individual ,= purposes ( apply+  
?is p>agraph to section #afb7m71 ! t]m  
cov]$ individual means any individual   
:o-- 7i7 is an (fic]1 director1 or      
employee ( ! applicable taxpay] = !     
taxable ye>1 or  7ii7 p]=m$ s]vices = ! 
applicable taxpay] dur+ ! taxable ye>4  

,= purposes ( clause 7i71 any employee  
:o is treat$ z an employee ( !          
applicable taxpay] "u subsection 7b7 or 
7c7 ( section #dad %all be treat$ z an  
employee = purposes ( ?is subp>agraph4  
7#c7 ,c]ta9 =eign income ,except z      
provid$ 9 subsection 7f7-- 7,a7 ,c]ta9  
income exclud$ ,9 det]m9+ gross income--
 7i7 subp>t ,f income & global          
intangible l[-tax$ income includ$ 9     
gross income "u sections #iea & #iea;,a 
%all n be tak5 into acc\nt1 &  7ii7     
=eign-d]iv$ intangible income 7z def9$ 9
 section #bej7 %all n be tak5 into      
acc\nt unless su* income is dome/ic     
oil-relat$ income :i* is d]iv$ f oil or 
gas :i* is export$ f ! ,unit$ ,/ates4   
,= purposes ( clause 7ii71 ! t]m dome/ic
 oil-relat$ income means income 7o!r ?an
 divid5d or int]e/ income :i* is passive
 income 7z def9$ 9 section              
#ijd7;d77#b77;,a77 d]iv$ f s\rces )9 !  
,unit$ ,/ates or its possessions f      
activities describ$ 9 subp>agraphs 7,a7 
?r\gh 7,e7 ( section #ijg7;c77#b74  7,b7

 ,d5ial ( section #bej d$uction ,no     
d$uction %all be all[$ "u section #bej4 
7d7 ,normal return ,= purposes ( ?is    
section1 ! t]m normal return means1 )   
respect to any applicable taxpay] = any 
taxable ye>1 an am\nt equal to #aj p]c5t
 ( ! excess (-- 7#a7 ! gross receipts ( 
! taxpay] tak5 into acc\nt 9 comput+ !  
taxpay]'s curr5t pr(its = ! taxable ye>1
 includ+ ! taxpay]'s allocable %>e ( any
 gross receipts ( a p>tn]%ip1 ,s        
corporation1 or o!r pass-?ru entity     
specifi$ by ! ,secret>y "u subsection   
7e77#b77;,a71 ov]  7#b7 ! curr5t pr(its 
( ! taxpay] = ! taxable ye>4  7e7       
,def9itions & rules relat+ to applicable
 entities ,= purposes ( ?is section--   
7#a7 ,9 g5]al ,an applicable entity =   
any taxable ye> %all-- 7,a7 compute !   
curr5t pr(its1 normal return1 & excess  
pr(its ( su* entity = su* taxable ye> 9 
! same mann] z if su* entity 7 an       
applicable taxpay]1 except t subsection 
7c7 %all be appli$ by sub/itut+ !       
entity's non-sep>ately /at$ taxable     

income = ! entity's taxable income1 &   
7,b7 report to ea* p>tn]1 %>ehold]1 or  
o!r hold] ( an own]%ip int]e/ 9 su*     
entity its allocable %>e ( ! entity's   
excess pr(its4  7#b7 ,applicable entity 
,! t]m applicable entity means1 )       
respect to any taxable ye>1 an entity-- 
7,a7 :i* is a p>tn]%ip1 ,s corporation1 
or o!r pass-?ru entity specifi$ by !    
,secret>y1 &  7,b7 ) respect to :i* !   
requirem5ts ( subp>agraphs 7,a7 & 7,b7 (
 subsection 7b77#a7 are met = su*       
taxable ye>1 det]m9$ 9 ! same mann] z if
 su* entity 7 an applicable taxpay]4    
7#c7 ,allocable %>e ,a p]son's allocable
 %>e ( ! excess pr(its %all be det]m9$ 9
 ! same mann] z-- 7,a7 9 ! case ( a     
p>tn]%ip1 su* p]son's di/ributive %>e ( 
! non-sep>ately /at$ taxable income ( ! 
p>tn]%ip1  7,b7 9 ! case ( an ,s        
corporation1 su* p]son's pro rata %>e ( 
! non-sep>ately /at$ taxable income ( ! 
,s corporation1 &  7,c7 9 ! case ( any  
o!r pass-?ru entity1 su* p]son's %>e 7z 
det]m9$ "u rules prescrib$ by !         

,secret>y7 ( ! non-sep>ately /at$       
taxable income ( ! entity4  7#d7        
,non-sep>ately /at$ taxable income ,!   
t]m non-sep>ately /at$ taxable income   
means taxable income comput$ "u-- 7,a7  
section #gjc7;a7 9 ! case ( a p>tn]%ip1 
7,b7 section #acff7;a77#a77;,b7 9 ! case
 ( an ,s corporation1 &  7,c7 rules     
prescrib$ by ! ,secret>y 9 ! case ( any 
o!r pass-?ru entity4  7f7 ,rules = c]ta9
 =eign income attributable to imports   
into ! ,unit$ ,/ates ,= purposes ( ?is  
section-- 7#a7 ,9 g5]al ,9 ! case ( any 
oil & gas import income ( an applicable 
taxpay] = any taxable ye>-- 7,a7 9      
comput+ su* taxpay]'s curr5t pr(its =   
su* taxable ye>-- 7i7 su* oil & gas     
import income 7& any d$uctions allocable
 to su* income7 %all be tak5 into       
acc\nt1 &  7ii7 subsection 7c77#c7 %all 
n apply to any subp>t ,f income1 global 
intangible l[-tax$ income1 or           
=eign-d]iv$ intangible income ( su*     
taxpay] to ! ext5t su* income is        
attributable to su* oil & gas import    

income1 &  7,b7 gross receipts tak5 into
 acc\nt 9 comput+ su* oil & gas import  
income %all be tak5 into acc\nt 9       
comput+ ! gross receipts ( su* taxpay] =
 purposes ( subsection 7b77#a77;,a7 4   
7#b7 ,oil & gas import income  7,a7     
,controll$ =eign corporations ,9 ! case 
( a ,unit$ ,/ates %>ehold] ( a controll$
 =eign corporation1 ! t]m oil & gas     
import income means1 ) respect to su*   
%>ehold] = su* taxable ye>1 su*         
%>ehold]'s pro rata %>e ( comb9$ =eign  
oil & gas income ( ! controll$ =eign    
corporation :i* is d]iv$ f oil & gas    
import$ into ! ,unit$ ,/ates4  7,b7     
,au?ority to include o!r income ,!      
,secret>y may prescribe su* regulations 
or o!r guidance to include 9 oil & gas  
import income ( an applicable taxpay]   
its pro rata %>e ( any comb9$ =eign oil 
& gas income ( any p]son relat$ to !    
taxpay] 7o!r ?an a controll$ =eign      
corporation7 :i* is d]iv$ f oil & gas   
import$ into ! ,unit$ ,/ates if !       
,secret>y det]m9es su* inclusion is     

necess>y to prev5t ! avoidance ( ! tax  
impos$ by ?is section4  7#c7 ,def9itions
 & special rules  7,a7 ,9 g5]al ,! t]m  
comb9$ =eign oil & gas income has !     
mean+ giv5 su* t]m by section           
#ijg7;b77#a71 except t 9 apply+         
p>agraphs 7#a7 & 7#b7 ( section #ijg7;c7
 = purposes ( section #ijg7;b77#a71 !   
t]m income %all be sub/itut$ = taxable  
income ea* place x appe>s4  7,b7 ,pro   
rata %>e ,an applicable taxpay]'s pro   
rata %>e ( any oil & gas import income  
%all be det]m9$ "u rules simil> to !    
rules "u section #iea7;a77#b74  7,c7    
,prev5tion ( d\ble c\nt+ ,oil & gas     
import income 7& any d$uctions allocable
 to su* income7 %all n be tak5 into     
acc\nt "u p>agraph 7#a7 to ! ext5t      
already tak5 into acc\nt4  7g7          
,regulations or o!r guidance ,!         
,secret>y %all prescribe su* regulations
 or o!r guidance z is necess>y to c>ry  
out ?is section1 includ+ regulations or 
o!r guidance = ! application (          
subsections 7b77#b7 & 7e71 includ+      

regulations or o!r guidance-- 7#a7 = !  
application ( su* subsections 9 ! case (
 ti]$ entities1  7#b7 = det]m9+ a       
p]son's allocable %>e :]e !             
non-sep>ately /at$ taxable income ( an  
entity is a loss1 &  7#c7 provid+ rules 
= ! report+1 includ+ ?r\gh ti]$         
entities1 ( excess pr(its4  7h7         
,t]m9ation ,?is section %all n apply to 
any taxable ye> beg9n+ aft] ,decemb]    
#ca1 #bjbe4  4  7b7 ,tax n tak5 into    
acc\nt 9 comput+ e/imat$ tax ,p>agraph  
7#a7 ( section #ffed7;f7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 #ei;,b or be=e #adc7m74  7c7 ,con=m+   
am5dm5t ,! table ( sub*apt]s = sub*apt] 
,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new item3  ,,"p ,,viii--,w9dfall 
pr(its f oil & gas  4  7d7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s end+ aft] !  
date ( ! enactm5t ( ?is ,act4  7e7 ,tax 
treat$ z rate *ange ,= purposes (       
section #ae7;a7 ( ! ,int]nal ,rev5ue    

,code ( #aihf1 ! tax impos$ by !        
am5dm5ts made by ?is section %all be    
treat$ 9 ! same mann] z a *ange 9 ! rate
 ( tax "u *apt] #a ( su* ,code4  #c4    
,excise tax on repur*ase ( corporate    
/ock  7a7 ,9 g5]al ,subtitle ,d ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] *apt] #cf ! foll[+ new   
*apt]3  #cg ,repur*ase ( corporate /ock 
,sec4 #dejb4 ,repur*ase ( corporate /ock
 by oil & gas companies4  #dejb4        
,repur*ase ( corporate /ock by oil & gas
 companies  7a7 ,g5]al rule ,!re is     
h]eby impos$ on ea* cov]$ corporation a 
tax equal to #be p]c5t ( ! fair m>ket   
value ( any /ock ( ! corporation :i* is 
repur*as$ by su* corporation dur+ !     
taxable ye>4  7b7 ,cov]$ corporation ,= 
purposes ( ?is section1 ! t]m cov]$     
corporation means1 ) respect to any     
repur*ase1 any dome/ic corporation--    
7#a7 ! /ock ( :i* is trad$ on an        
e/abli%$ securities m>ket 7)9 ! mean+ ( 
section #ggjd7;b77#a771 &  7#b7 :i* is  
an applicable taxpay] 7z def9$ 9 section

 #ei;,b7 = ! taxable ye> 9 :i* su*      
repur*ase occurs4  7c7 ,repur*ase ,=    
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m repur*ase means-- 7,a7 a         
r$emption )9 ! mean+ ( section #cag7;b7 
) reg>d to ! /ock ( a cov]$ corporation1
 &  7,b7 any transaction det]m9$ by !   
,secret>y to be economically simil> to a
 transaction describ$ 9 subp>agraph     
7,a74  7#b7 ,treatm5t ( pur*ases by     
specifi$ affiliates  7,a7 ,9 g5]al ,!   
acquisition ( /ock ( a cov]$ corporation
 by a specifi$ affiliate ( su* cov]$    
corporation1 f a p]son :o is n ! cov]$  
corporation or a specifi$ affiliate (   
su* cov]$ corporation1 %all be treat$ z 
a repur*ase ( ! /ock ( ! cov]$          
corporation by su* cov]$ corporation4   
7,b7 ,specifi$ affiliate ,= purposes (  
?is section1 ! t]m specifi$ affiliate   
means1 ) respect to any corporation--   
7i7 any corporation m ?an #ej p]c5t ( ! 
/ock ( :i* is own$ 7by vote or by       
value71 directly or indirectly1 by su*  
corporation1 &  7ii7 any p>tn]%ip m ?an 

#ej p]c5t ( ! capital int]e/s or pr(its 
int]e/s ( :i* is held1 directly or      
indirectly1 by su* corporation4  7#c7   
,adju/m5t ,! am\nt tak5 into acc\nt "u  
subsection 7a7 ) respect to any /ock    
repur*as$ by a cov]$ corporation %all be
 r$uc$ by ! fair m>ket value ( any /ock 
issu$ by ! cov]$ corporation dur+ !     
taxable ye>1 includ+ ! fair m>ket value 
( any /ock issu$ or provid$ to employees
 ( su* cov]$ corporation or a specifi$  
affiliate ( su* cov]$ corporation dur+ !
 taxable ye>1 :e!r or n su* /ock is     
issu$ or provid$ 9 response to ! ex]cise
 ( an option to pur*ase su* /ock4  7d7  
,special rules = acquisition ( /ock (   
c]ta9 =eign corporations  7#a7 ,9 g5]al 
,9 ! case ( an acquisition ( /ock ( an  
applicable =eign corporation by a       
specifi$ affiliate ( su* corporation    
7o!r ?an a =eign corporation or a =eign 
p>tn]%ip 7unless su* p>tn]%ip has a     
dome/ic entity z a direct or indirect   
p>tn]77 f a p]son :o is n ! applicable  
=eign corporation or a specifi$         

affiliate ( su* applicable =eign        
corporation1 = purposes ( ?is section-- 
7,a7 su* specifi$ affiliate %all be     
treat$ z a cov]$ corporation ) respect  
to su* acquisition1  7,b7 su*           
acquisition %all be treat$ z a repur*ase
 ( /ock ( a cov]$ corporation by su*    
cov]$ corporation1 &  7,c7 ! adju/m5t "u
 subsection 7c77#c7 %all be det]m9$ only
 ) respect to /ock issu$ or provid$ by  
su* specifi$ affiliate to employees ( ! 
specifi$ affiliate4  7#b7 ,surrogate    
=eign corporations ,9 ! case ( a        
repur*ase ( /ock ( a cov]$ surrogate    
=eign corporation by su* cov]$ surrogate
 =eign corporation1 or an acquisition ( 
/ock ( a cov]$ surrogate =eign          
corporation by a specifi$ affiliate (   
su* corporation1 = purposes ( ?is       
section-- 7,a7 ! expatriat$ entity )    
respect to su* cov]$ surrogate =eign    
corporation %all be treat$ z a cov]$    
corporation ) respect to su* repur*ase  
or acquisition1  7,b7 su* repur*ase or  
acquisition %all be treat$ z a repur*ase

 ( /ock ( a cov]$ corporation by su*    
cov]$ corporation1 &  7,c7 ! adju/m5t "u
 subsection 7c77#c7 %all be det]m9$ only
 ) respect to /ock issu$ or provid$ by  
su* expatriat$ entity to employees ( !  
expatriat$ entity4  7#c7 ,def9itions ,= 
purposes ( ?is subsection-- 7,a7        
,applicable =eign corporation ,! t]m    
applicable =eign corporation means any  
=eign corporation-- 7i7 ! /ock ( :i* is 
trad$ on an e/abli%$ securities m>ket   
7)9 ! mean+ ( section #ggjd7;b77#a771 & 
7ii7 ) respect to :i* requirem5ts (     
subp>agraphs 7,b7 & 7,c7 ( subsection   
7b77#a7 are met ) respect su*           
corporation1 except t 9 apply+ su*      
subp>agraphs1 ! taxable ye> ( !         
acquisition ( /ock %all be sub/itut$ = !
 taxable ye> ( pur*ase ( /ock4  7,b7    
,cov]$ surrogate =eign corporation ,!   
t]m cov]$ surrogate =eign corporation   
means any =eign corporation-- 7i7 :i* is
 a surrogate =eign corporation 7z       
det]m9$ "u section #ghgd7;a77#b77;,b7 by
 sub/itut+ ,septemb] #bj1 #bjba = ,m>*  

#d1 #bjjc ea* place x appe>s7 ! /ock (  
:i* is trad$ on an e/abli%$ securities  
m>ket 7)9 ! mean+ ( section             
#ggjd7;b77#a771 b only ) respect to     
taxable ye>s :i* include any portion ( !
 applicable p]iod ) respect to su*      
corporation "u section #ghgd7;d77#a71 & 
7ii7 ) respect to :i* requirem5ts (     
subp>agraphs 7,b7 & 7,c7 ( subsection   
7b77#a7 are met ) respect to ! taxable  
ye> ( ! repur*ase ( /ock ( su*          
corporation4  7,c7 ,expatriat$ entity ,!
 t]m expatriat$ entity has ! mean+ giv5 
su* t]m by section #ghgd7;a77#b77;,a74  
7e7 ,exceptions ,subsection 7a7 %all n  
apply-- 7#a7 to ! ext5t t ! repur*ase is
 "p ( a reorganization 7)9 ! mean+ (    
section #cfh7;a77 & no ga9 or loss is   
recogniz$ on su* repur*ase by ! %>ehold]
 "u *apt] #a by reason ( su*            
reorganization1  7#b7 9 any case 9 :i* !
 /ock repur*as$ is1 or an am\nt ( /ock  
equal to ! value ( ! /ock repur*as$ is1 
contribut$ to an employ]-sponsor$       
retirem5t plan1 employee /ock own]%ip   

plan1 or simil> plan1  7#c7 9 any case 9
 :i* ! total value ( ! /ock repur*as$   
dur+ ! taxable ye> does n exce$         
#a1jjj1jjj1  7#d7 to repur*ases by a    
regulat$ inve/m5t company 7z def9$ 9    
section #hea7 or a real e/ate inve/m5t  
tru/1 or  7#e7 to ! ext5t t ! repur*ase 
is treat$ z a divid5d = purposes ( ?is  
title4  7f7 ,regulations & guidance ,!  
,secret>y %all prescribe su* regulations
 & o!r guidance z are necess>y or       
appropriate to adm9i/] & to prev5t !    
avoidance ( ! purposes ( ?is section1   
includ+ regulations & o!r guidance--    
7#a7 to prev5t ! abuse ( ! exceptions   
provid$ by subsection 7e71  7#b7 to     
address special classes ( /ock & pref]r$
 /ock1 &  7#c7 = ! application ( ! rules
 "u subsection 7d74  7g7 ,t]m9ation ,?is
 section %all n apply to repur*ases aft]
 ,decemb] #ca1 #bjbe4  4  7b7 ,tax n    
d$uctible ,p>agraph 7#f7 ( section      
#bge7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ #cg1 be=e #da4 
7c7 ,cl]ical am5dm5t ,! table ( *apt]s =

 subtitle ,d ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by ins]t+ aft] ! item  
relat+ to *apt] #cf ! foll[+ new item3  
,*apt] #cg--,repur*ase ( corporate /ock 
4  7d7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to repur*ases 
7)9 ! mean+ ( section #dejb7;c7 ( !     
,int]nal ,rev5ue ,code ( #aihf1 z add$  
by ?is section7 ( /ock aft] ! date ( !  
enactm5t ( ?is ,act4  #d4 ,t]m9ation (  
,,lifo inv5tories = c]ta9 oil & gas     
companies  7a7 ,9 g5]al ,section #dgb ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7h7 ,t]m9ation = oil &     
natural gas companies  7#a7 ,t]m9ation  
,except z provid$ 9 p>agraph 7#b71      
subsection 7a7 %all n apply to any trade
 or bus9ess prim>ily consi/+ ( "o or m (
 ! foll[+3 7,a7 ,! production ( oil or  
natural gas4  7,b7 ,! ref9+ ( oil or    
natural gas4  7,c7 ,! process+ ( oil or 
natural gas4  7,d7 ,! transportation (  
oil or natural gas4  7,e7 ,! di/ribution
 ( oil or natural gas4  7#b7 ,exception 

7,a7 ,9 g5]al ,p>agraph 7#a7 %all n     
apply to any trade or bus9ess ( a p]son 
= any taxable ye> if ! av]age annual    
gross receipts ( all trades or bus9esses
 ( su* p]son = ! #c-taxable-ye> p]iod   
end+ ) ! taxable ye> :i* prec$es su*    
taxable ye> does n exce$ #a1jjj1jjj1jjj4
  7,b7 ,applicable rules ,= purposes (  
subp>agraph 7,a7 rules simil> to ! rules
 ( p>agraphs 7#b7 & 7#c7 ( section      
#ddh7;c7 %all apply4  4  7b7 ,*ange 9   
me?od ( acc\nt+ ,if any taxpay] is      
requir$ by ! am5dm5ts made by ?is       
section to *ange its me?od ( acc\nt+ 9  
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbb1 !n1 = purposes ( section #dha ( !
 ,int]nal ,rev5ue ,code ( #aihf-- 7#a7  
su* *ange %all be treat$ z initiat$ by !
 taxpay]2 &  7#b7 su* *ange %all be     
treat$ z made ) ! cons5t ( ! ,secret>y (
 ! ,treasury4  7c7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbb4