,,ii  #aaith ,,congress  #b;d ,session  
,s4 #ecej  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #f1    
#bjbf,mr4 ,heinrich introduced the      
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to include      
foreign oil and gas extraction income in
 net ,,cfc tested income1 to include    
income from the extraction of minerals  
from oil shale and tar sands in the     
definitions of foreign oil and gas      
extraction income and foreign oil       
related income1 and for other purposes4 
#a4 ,short title ,this ,act may be cited
 as the ,american ,energy ,independence 
and ,tax ,fairness ,act4  #b4 ,foreign  
oil and gas extraction income included  
in net ,,cfc tested income  7a7 ,in     
general ,section #iea;,a7b77#b77;,a77i7 
of the ,internal ,revenue ,code of #aihf
 is amended by inserting and at the end 
of subclause 7,,iii71 by striking and at
 the end of subclause 7,,iv7 and        

inserting over1 and by striking         
subclause 7,v74  7b7 ,effective date    
,the amendments made by this section    
shall apply to taxable years of foreign 
corporations beginning after the date of
 the enactment of this ,act1 and to     
taxable years of ,united ,states        
shareholders in which or with which such
 tax years of foreign corporations end4 
#c4 ,foreign oil and gas extraction     
income and foreign oil related income to
 include oil shale and tar sands  7a7   
,in general ,paragraphs 7#a77;,a7 and   
7#b77;,a7 of section #ijg7;c7 of the    
,internal ,revenue ,code of #aihf are   
each amended by inserting 7or oil shale 
or tar sands7 after oil or gas wells4   
7b7 ,effective date ,the amendments made
 by this section shall apply to taxable 
years beginning after the date of the   
enactment of this ,act4  #d4            
,modifications of foreign tax credit    
rules applicable to certain taxpayers   
receiving specific economic benefits    
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-- 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   
which would be paid or accrued by such  
dual capacity taxpayer under the        
generally applicable income tax imposed 
by such country or possession if such   
taxpayer were not a 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 from such     
country or possession 7or any political 
subdivision1 agency1 or instrumentality 
thereof74  7#c7 ,generally applicable   
income tax ,for purposes of this        
subsection1 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 of the   
,united ,states on residents of such    
foreign country or possession that are  
not dual capacity taxpayers4  4  7b7    

,effective date ,the amendments made by 
this section shall apply to taxable     
years of foreign corporations beginning 
after ,december #ca1 #bjbf1 and to      
taxable years of ,united ,states        
shareholders in which or with which such
 taxable years of foreign corporations  
end4