113 HR 2956 IH: End Welfare for Big Oil Act of 2013
U.S. House of Representatives
2013-08-01
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
End Welfare for Big Oil Act of
2013
.
<enum>I</enum><header>Repeal of oil and
gas subsidies</header>
<subtitle id="H54518E9A0C0C47879AAC356CADEEEB1B"><enum>A</enum><header>Close big oil tax
loopholes</header>
<section commented="no" display-inline="no-display-inline" id="H5050BF58AD054F75B4379248086CF3F4"><enum>101.</enum><header>Modifications
of foreign tax credit rules applicable to major integrated oil companies which
are dual capacity taxpayers</header>
<subsection commented="no" display-inline="no-display-inline" id="HDC7445423A004612A29B7DC3C3921EB0"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 901 of the
Internal Revenue Code of 1986 is amended by redesignating subsection (n) as
subsection (o) and by inserting after subsection (m) the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H8DA5BBA03ABC4C05A68F0D7DE1D4B741" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H03E580902EC34F1FA2165B1A7C81156B"><enum>(n)</enum><header>Special rules
relating to major integrated oil companies which are dual capacity
taxpayers</header>
<paragraph commented="no" display-inline="no-display-inline" id="HADC7067037184A979D599FD904F830B6"><enum>(1)</enum><header>General
rule</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this chapter, any amount paid or accrued by a dual capacity
taxpayer which is a major integrated oil company (as defined in section
167(h)(5)(B)) to a foreign country or possession of the United States for any
period shall not be considered a tax—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H49CF81A7C8CA4257A29035E0CEFE27BA"><enum>(A)</enum><text display-inline="yes-display-inline">if, for such period, the foreign country or
possession does not impose a generally applicable income tax, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9931192EC087433EA7BE41ACF4CB0490"><enum>(B)</enum><text display-inline="yes-display-inline">to the extent such amount exceeds the
amount (determined in accordance with regulations) which—</text>
<clause commented="no" display-inline="no-display-inline" id="HC4F3115DBF8843F69DC48FB5585BD685"><enum>(i)</enum><text display-inline="yes-display-inline">is paid by such dual capacity taxpayer
pursuant to the generally applicable income tax imposed by the country or
possession, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4F8134B188D04BAF89225526BC52645D"><enum>(ii)</enum><text display-inline="yes-display-inline">would be paid if the generally applicable
income tax imposed by the country or possession were applicable to such dual
capacity taxpayer.</text>
</clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">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 (B).</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9F28249D2A714B3FB08F414B53F2AE61"><enum>(2)</enum><header>Dual capacity
taxpayer</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <term>dual capacity taxpayer</term> means, with respect to
any foreign country or possession of the United States, a person who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA01D3AAF5BD94615A3720FDE1B943822"><enum>(A)</enum><text display-inline="yes-display-inline">is subject to a levy of such country or
possession, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H209B5D4B123045CE8703C0862842D4FD"><enum>(B)</enum><text display-inline="yes-display-inline">receives (or will receive) directly or
indirectly a specific economic benefit (as determined in accordance with
regulations) from such country or possession.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07D66222EF824B29AC5397EB9A0DA2AE"><enum>(3)</enum><header>Generally
applicable income tax</header><text display-inline="yes-display-inline">For
purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H75C57A670AD34649A6F05D90CC025B1B"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>generally applicable income tax</term> means an income tax (or a series
of income taxes) 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 possession.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE742E40683AC4358BC4FC16F8B027923"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include a tax unless it
has substantial application, by its terms and in practice, to—</text>
<clause commented="no" display-inline="no-display-inline" id="H352DEA0843194D1B8FE1202A390E1241"><enum>(i)</enum><text display-inline="yes-display-inline">persons who are not dual capacity
taxpayers, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA1858A1382B947348E681CC43C29844E"><enum>(ii)</enum><text display-inline="yes-display-inline">persons who are citizens or residents of
the foreign country or
possession.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HCA494F07E4994FA281E5E88B3A4A778E"><enum>(b)</enum><header>Effective
Date</header>
<paragraph commented="no" display-inline="no-display-inline" id="HFCC5DD82EDAB4F52960281C2311D1F66"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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 Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4E9101DC6C9E4F9DA4F0E09609FE8E1D"><enum>(2)</enum><header>Contrary treaty
obligations upheld</header><text display-inline="yes-display-inline">The
amendments made by this section shall not apply to the extent contrary to any
treaty obligation of the United States.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H09EF78A7D6934ED1B62E7BB828447606"><enum>102.</enum><header>Limitation on
section 199 deduction attributable to oil, natural gas, or primary products
thereof</header>
<subsection id="H4335E3AC21F6451FA208BCF09BD424FD"><enum>(a)</enum><header>Denial of
deduction</header><text>Paragraph (4) of section 199(c) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HA5775AFED0EF42008F6FD705190260F5" style="OLC">
<subparagraph id="HCC2638E711554ED9BE3286D869039FBC"><enum>(E)</enum><header>Special rule for
certain oil and gas income</header><text>In the case of any taxpayer who is a
major integrated oil company (as defined in section 167(h)(5)(B)) for the
taxable year, the term <term>domestic production gross receipts</term> shall
not include gross receipts from the production, transportation, or distribution
of oil, natural gas, or any primary product (within the meaning of subsection
(d)(9))
thereof.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB26986B7571149529F17718C2F1CD8AA"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2013.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H76CEDE9E87B641AC8D0A2284585A8006"><enum>103.</enum><header>Limitation on
deduction for intangible drilling and development costs</header>
<subsection commented="no" display-inline="no-display-inline" id="H7BC6D0A1CB8A45B5B828EDCB3626C59D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 263(c) of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
sentence: <quote>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 (as defined in section 167(h)(5)(B)).</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H224F60F3AE964A8C99546B19EA5741EB"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to amounts paid or incurred in taxable years beginning
after December 31, 2013.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HECF1CE8DCE4449EEB613FFA34FF2E96E" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Limitation on percentage depletion
allowance for oil and gas wells</header>
<subsection commented="no" display-inline="no-display-inline" id="H7BE59F0D2D6B4EE0A78AAB80669B8736"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 613A of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1F12205C8B964802B486DA20D5AFC13E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H6C4C5FCAF0EE49B7BA29DF028B6E5588"><enum>(f)</enum><header display-inline="yes-display-inline">Application with respect to major
integrated oil companies</header><text display-inline="yes-display-inline">In
the case of any taxable year in which the taxpayer is a major integrated oil
company (as defined in section 167(h)(5)(B)), the allowance for percentage
depletion shall be
zero.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H99B387F65F8F42D3A90907971CDED4E0"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to taxable years beginning after December 31,
2013.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H2744F667D9F04468B77636EAA3397E82"><enum>105.</enum><header>Limitation on
deduction for tertiary injectants</header>
<subsection commented="no" display-inline="no-display-inline" id="H3627E79C9878452CAFC265F770F354A9"><enum>(a)</enum><header>In
general</header><text>Section 193 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H9322117B94F54F05A8B2991365CEC9A2" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H075CCAB8BA004D20938BA7555A24AB3B"><enum>(d)</enum><header>Application with
respect to major integrated oil companies</header><text display-inline="yes-display-inline">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 (as defined in section
167(h)(5)(B)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H185CF39F41CB4D48921F07F58F74DDA1"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to amounts paid or incurred in taxable years beginning
after December 31, 2013.</text>
</subsection></section></subtitle><subtitle id="H390B34B9794C4F1292920C62C875A0A9"><enum>B</enum><header>Outer Continental
Shelf oil and natural gas</header>
<section id="H892C69E03CEB42A7B8F6D2AE654A1606"><enum>111.</enum><header>Repeal of outer
Continental Shelf deep water and deep gas royalty relief</header>
<subsection id="H1AC5B0763C6E409FB9512D4A9FFE46B8"><enum>(a)</enum><header>In
general</header><text>Sections 344 and 345 of the Energy Policy Act of 2005 (42
U.S.C. 15904, 15905) are repealed.</text>
</subsection><subsection id="H8B91EE14AC2A48378C5785C25F0872E2"><enum>(b)</enum><header>Limitation on
application</header><text display-inline="yes-display-inline">The repeal under
subsection (a) shall not affect the application of the repealed sections with
respect to any lease sale for which a notice of sale is published before the
date of enactment of this Act.</text>
</subsection></section></subtitle><enum>II</enum><header>Budgetary
effects</header>
<section id="H35FF08C4E746425B897A915C48B35A08"><enum>201.</enum><header>Deficit
reduction</header><text display-inline="no-display-inline">The net amount of
any savings realized as a result of the enactment of this Act and the
amendments made by this Act (after any expenditures authorized by this Act and
the amendments made by this Act) shall be deposited in the Treasury and used
for Federal budget deficit reduction or, if there is no Federal budget deficit,
for reducing the Federal debt in such manner as the Secretary of the Treasury
considers appropriate.</text>
</section>