113 HR 4753 IH: Investing to Modernize the Production of American Clean Energy and Technology Act of 2014
U.S. House of Representatives
2014-05-28
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.Short title; table of contents
(a)This Act may be cited as the Investing to Modernize the Production of American Clean Energy and Technology Act of 2014
or as the IMPACT Act of 2014
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Clean energy incentives
Subtitle A—Renewable energy
Sec. 101. Extension of renewable energy credits.
Sec. 102. Extension of election of investment tax credit in lieu of production credit.
Sec. 103. Extension of qualifying advanced energy project credit.
Sec. 104. Extension of credit for energy-efficient new homes.
Sec. 105. Extension of credit for energy-efficient appliances.
Subtitle B—Electric, natural gas, and hydrogen vehicles
Sec. 111. Increase and expansion of credit for qualified plug-in electric drive motor vehicles.
Sec. 112. Extension of new qualified alternative fuel motor vehicle credit for heavy natural gas
vehicles.
Sec. 113. Modification of credit for alternative fuel vehicle refueling property for vehicles
powered by electricity, natural gas, or hydrogen.
Sec. 114. Electric, natural gas, and hydrogen vehicle refueling property tax credit bonds.
Title II—Repeal of fossil fuel subsidies for big oil companies
Sec. 201. Prohibition on using last-in, first-out accounting for major integrated oil companies.
Sec. 202. Modifications of foreign tax credit rules applicable to major integrated oil companies
which are dual capacity taxpayers.
Sec. 203. Limitation on section 199 deduction attributable to oil, natural gas, or primary products
thereof.
Sec. 204. Limitation on deduction for intangible drilling and development costs.
Sec. 205. Limitation on percentage depletion allowance for oil and gas wells.
Sec. 206. Limitation on deduction for tertiary injectants.
<enum>I</enum><header>Clean energy incentives</header>
<subtitle id="HA0A1C470EB0D4CE4A5DC592482FE04AF"><enum>A</enum><header>Renewable energy</header>
<section id="HCA05EB8FABEE4DA2BB25B87857B23E6C"><enum>101.</enum><header>Extension of renewable energy credits</header>
<subsection id="HBA2C69683E8545DF86A0C5DF946B1B80"><enum>(a)</enum><header>Wind, biomass, geothermal, small irrigation, landfill gas, hydropower, marine, and hydrokinetic</header><text>Each of the following provisions of section 45(d) of such Code is amended by striking <quote>January 1, 2014</quote> each place it appears and inserting <quote>January 1, 2024</quote>:</text>
<paragraph id="H797E0F81C3C84D39AF3208E3CFBF6E6C"><enum>(1)</enum><text>Paragraph (1).</text>
</paragraph><paragraph id="HDA265D9DF2BD4CE3B98168C2EFB32F58"><enum>(2)</enum><text>Clauses (i) and (ii) of paragraph (2)(A).</text>
</paragraph><paragraph id="H48F9E3EE9F884D6A9BA57EB0ED284460"><enum>(3)</enum><text>Clauses (i)(I) and (ii) of paragraph (3)(A).</text>
</paragraph><paragraph id="H9F3D6E3D32CA4675989BF0357C533521"><enum>(4)</enum><text>Paragraph (4).</text>
</paragraph><paragraph id="H48E20336BDF74D908E827FCA0C082DF3"><enum>(5)</enum><text>Paragraph (6).</text>
</paragraph><paragraph id="H2A6D624EC8954929877188B002686F68"><enum>(6)</enum><text>Subparagraphs (A) and (C) of paragraph (9).</text>
</paragraph><paragraph id="H3FCA65FC11A642BD915811816FDC36BE"><enum>(7)</enum><text>Subparagraph (B) of paragraph (11).</text>
</paragraph></subsection><subsection id="H64C1587B5E2645198F7C6FEE647DA697"><enum>(b)</enum><header>Early termination in event of Federal renewable electricity requirement</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3E1B70388A3349B4BD78E0F23ECC2C44" style="OLC">
<paragraph id="H4BC85F3D3A9044139845148F533030D3"><enum>(12)</enum><header>Termination in event of Federal renewable electricity requirement</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, the term <term>qualified facility</term> shall not include any property which is placed in service after the date which is 1 year after the
date on which the Secretary of Energy makes a public declaration that a
Federal law is in effect which requires retail electric suppliers in the
United States to supply minimum and significant amounts of electric energy
which is generated from renewable sources to customers for purposes other
than resale.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE82C0328AFAB488BB2A68BAC3A0399C6"><enum>102.</enum><header>Extension of election of investment tax credit in lieu of production credit</header>
<subsection commented="no" display-inline="no-display-inline" id="HF929CC092D4140569470A2878B8C5ED0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(5)(C)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>January 1, 2014</quote> and inserting <quote>January 1, 2024</quote>.</text>
</subsection><subsection id="H2718188DB45B4403A14BB541260C580B"><enum>(b)</enum><header>Limitation</header><text>Paragraph (5) of section 48(a) of such Code is amended by adding at the end the following new
subparagraphs:</text>
<quoted-block id="H1CBF86A54A5540D0938420CE4F349936" style="OLC">
<subparagraph commented="no" id="H3DB718E4DBFB409BA678AE25C998213C"><enum>(E)</enum><header>Limitation</header><text>In the case of a qualifying offshore wind facility to which this paragraph applies and the total
megawatt nameplate capacity of which exceeds 3,000 megawatts, the basis
which would (but for this subparagraph) be taken into account under
subsection (a) with respect to such facility shall not exceed the amount
which bears the same ratio to such basis as—</text>
<clause id="H6E8F6EFB002E49D1B59FD393134213B3"><enum>(i)</enum><text>3000 megawatts, bears to</text>
</clause><clause id="H7BAD0D9323B94C34A11B26093379F124"><enum>(ii)</enum><text>the total megawatt nameplate capacity of such facility.</text>
</clause></subparagraph><subparagraph id="H1CF588F1E88F48119296732B6F3680CF"><enum>(F)</enum><header>Qualifying offshore wind facility</header><text>For purposes of this paragraph—</text>
<clause id="H20DBC183C57E49039D2D5815399D0E41"><enum>(i)</enum><header>In general</header><text>The term <term>qualifying offshore wind facility</term> means an offshore facility using wind to produce electricity.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE437B68C27D345E9863F263620919288"><enum>(ii)</enum><header>Offshore facility</header><text>The term <term>offshore facility</term> means any facility located in the inland navigable waters of the United States, including the
Great Lakes, or in the coastal waters of the United States, including the
territorial seas of the United States, the exclusive economic zone of the
United States, and the Outer Continental Shelf of the United States. For
purposes of the preceding sentence, the term <term>United States</term> has the meaning given in section 638(1).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H2F9CD836E32249A8B53E4E3526DD079B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to facilities placed in service after December 31,
2013.</text>
</subsection></section><section id="HE823AAD632B946D7AADFF4BC3F896DDE"><enum>103.</enum><header>Extension of qualifying advanced energy project credit</header><text display-inline="no-display-inline">Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/48C">section 48C(d)</external-xref> 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="HB476737989DF49AABAE775EB02F5F990" style="OLC">
<subparagraph id="H164E639B3B844BEDA2345B7FF1995821"><enum>(C)</enum><header>Additional limitation amount</header>
<clause id="H0E7251F53FAC4B12965645E8858FBCAC"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The total amount of credits that may be allocated under the program shall be increased by
$5,000,000,000.</text>
</clause><clause id="H9D588BEFF3334E73B7F84FD9673DBC26"><enum>(ii)</enum><header>Applications</header><text>Notwithstanding the deadline for submitting applications specified in paragraph (2)(A), an
applicant for certification with respect to credits allocated pursuant to
clause (i) may submit an application to the Secretary at such time and in
such manner as the Secretary may provide.</text>
</clause><clause id="HA0F0D8D5C1154260B102059C23A06ECA"><enum>(iii)</enum><header>Review, redistribution, and reallocation</header><text>Notwithstanding the deadline for review specified in paragraph (4)(A), the Secretary shall review
the credits allocated pursuant to clause (i) at such time as the Secretary
determines appropriate.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H49C1A8C8974F488EB82E7C5055BED886"><enum>104.</enum><header>Extension of credit for energy-efficient new homes</header>
<subsection id="HC22F15464C904EE68F855477A3C571D3"><enum>(a)</enum><header>In general</header><text>Subsection (g) of <external-xref legal-doc="usc" parsable-cite="usc/26/45L">section 45L</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2013</quote> and inserting <quote>December 31, 2016</quote>.</text>
</subsection><subsection id="H299E845F53D243199EEA70B9A5B1000B"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to homes acquired after December 31, 2013.</text>
</subsection></section><section commented="no" id="H8C35C4D2F09041C7BC45CC5EE111BE6C"><enum>105.</enum><header>Extension of credit for energy-efficient appliances</header>
<subsection commented="no" id="HDF4F4114719A49CE93E6E165AF2B95FE"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45M">Section 45M(b)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>or 2013</quote> each place it appears and inserting <quote>2013, 2014, 2015, or 2016</quote>.</text>
</subsection><subsection commented="no" id="H77E22E7B2E0F476890D931AFF4C1A360"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to appliances produced after December 31, 2013.</text>
</subsection></section></subtitle><subtitle id="HE67FF4DEDB5E44B691511B840DAF0E79"><enum>B</enum><header>Electric, natural gas, and hydrogen vehicles</header>
<section id="H5BB8BFC98FE541CA81AF426AB03115EA"><enum>111.</enum><header>Increase and expansion of credit for qualified plug-in electric drive motor vehicles</header>
<subsection id="H73DCC22E2AC549E4ACFB6CCF876C1471"><enum>(a)</enum><header>Increase in dollar limitation</header><text display-inline="yes-display-inline">Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(b)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>$2,500</quote> and inserting <quote>$5,000</quote>.</text>
</subsection><subsection id="H061EEAA68B834BCBBCCA2138B9F8A447"><enum>(b)</enum><header>Increase in limitation on number of vehicles eligible for credit</header><text>Paragraph (2) of section 30D(e) of such Code is amended by striking <quote>200,000</quote> and inserting <quote>400,000</quote>.</text>
</subsection><subsection id="HF6905DAB88454162AF35FE4477CCA29C"><enum>(c)</enum><header>Effective date</header><text>The amendment made by this section shall apply to vehicles acquired after the date of the enactment
of this Act.</text>
</subsection></section><section id="H844B430DAACE40A3B865B83EF3C8A3D8"><enum>112.</enum><header>Extension of new qualified alternative fuel motor vehicle credit for heavy natural gas vehicles</header>
<subsection commented="no" id="H0007F9A9A92B4EC89B31DA790E97636E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B(k)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>(December 31, 2018, in the case of a vehicle powered by compressed or liquefied natural gas and
weighing more than 8,500 pounds)</quote> before the period at the end.</text>
</subsection><subsection id="H932D8EE4F9F049BAB19381E12FED1F9C"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to vehicles purchased after the date of the
enactment of this Act.</text>
</subsection></section><section id="H9014B90F69CD4D58963D7F396F10498B"><enum>113.</enum><header>Modification of credit for alternative fuel vehicle refueling property for vehicles powered by
electricity, natural gas, or hydrogen</header>
<subsection id="HE9C8DFBEC3E44658AC3D1F94BFADD635"><enum>(a)</enum><header>Special Rules for Property Placed in Service Before January 1, 2021</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:</text>
<quoted-block id="H3CA6F2407C0147B2987F20020DA28667" style="OLC">
<paragraph id="H692FAED8F11E4FFAADCD80D72CFDD437"><enum>(7)</enum><header>Property for recharging vehicles powered by electricity, natural gas, or hydrogen</header><text>In the case of property placed in service after December 31, 2013, and before January 1, 2021,
which relates to electricity, natural gas, or hydrogen—</text>
<subparagraph id="HD7C72FFB0DA041F59202D0D69015B085"><enum>(A)</enum><text>subsection (a) shall be applied by substituting <quote>50 percent</quote> for <quote>30 percent</quote>,</text>
</subparagraph><subparagraph id="H7B71B084FBB044E1A9F3DE78FAC9891C"><enum>(B)</enum><text>subsection (b)(1) shall be applied by substituting <quote>$50,000</quote> for <quote>$30,000</quote>, and</text>
</subparagraph><subparagraph id="HA51E33A1742D4F688D40638B00F1C997"><enum>(C)</enum><text>subsection (b)(2) shall be applied by substituting <quote>$2,000</quote> for <quote>$1,000</quote>.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4C132EF93C22493EBD76A919335DCCF4"><enum>(b)</enum><header>Installation Costs</header><text>Subsection (e) of section 30C of such Code, as amended by subsection (a), is amended by adding at
the end the following:</text>
<quoted-block id="H5DB7E37D04C745ABAF412D8F075D3ADF" style="OLC">
<paragraph id="H04BFDE27059442E9B46A25E69E34B47C"><enum>(8)</enum><header>Installation costs</header><text>The cost of any qualified alternative fuel vehicle refueling property which relates to electricity,
natural gas, or hydrogen shall include the cost of the original
installation of such property.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA468B3F4392E474CB581164BFCBAB257"><enum>(c)</enum><header>Termination of Credit</header><text>Paragraph (1) of section 30C(g) of such Code is amended to read as follows:</text>
<quoted-block id="H71970C00A58D4497AD5FFC774D084D15" style="OLC">
<paragraph id="H68D60428280C475BBB9636F5C909E00E"><enum>(1)</enum><text>in the case of property relating to electricity, natural gas, or hydrogen, after December 31, 2020,
and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H20F3A337C3604EAEB2987C99E358D660"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to property placed in service after December 31,
2013.</text>
</subsection></section><section id="HFA2E28DAEE4A4A4A901C5095EB5682BF"><enum>114.</enum><header>Electric, natural gas, and hydrogen vehicle refueling property tax credit bonds</header>
<subsection id="H478C55C9C06247E69CEC83EAAC763731"><enum>(a)</enum><header>In General</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/54A">section 54A(d)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>or</quote> at the end of subparagraph (D), by inserting <quote>or</quote> at the end of subparagraph (E), and by inserting after subparagraph (E) the following new
subparagraph:</text>
<quoted-block id="H1807A76329704409A13F6FC31CBCA741" style="OLC">
<subparagraph id="H27EDCB64BF9D4DB5920DF17465C310DD"><enum>(F)</enum><text>a qualified electric, natural gas, and hydrogen vehicle refueling property bond,</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H478A8D34EED34C81B5024E15D8B0750A"><enum>(b)</enum><header>Qualified Purpose</header><text>Subparagraph (C) of section 54A(d)(2) of such Code is amended by striking <quote>and</quote> at the end of clause (iv), by striking the period at the end of clause (v) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H1C82ED0B7EA54F02B364E07C1E434A5D" style="OLC">
<clause id="H54BFD3DB3EB5478685F4D4964196A2EE"><enum>(vi)</enum><text display-inline="yes-display-inline">in the case of a qualified electric, natural gas, and hydrogen vehicle refueling property bond, a
purpose specified in section 54G(a)(1).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDD1EC8CED8EB443597A0355F362F0C38"><enum>(c)</enum><header>Bonds Allowed</header><text>Subpart I of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the
following new section:</text>
<quoted-block id="H4D3CAC87E1524C588B3D815B5608BF24" style="OLC">
<section id="H8C9B4E70B65E46F3936D71A2172F2F04"><enum>54G.</enum><header>Qualified electric, natural gas, and hydrogen vehicle refueling property bonds</header>
<subsection id="H2B2713656BD0406DA80E09F06664DC3B"><enum>(a)</enum><header>Qualified Electric, Natural Gas, and Hydrogen Vehicle Refueling Property Bond</header><text>For purposes of this subpart, the term <term>qualified electric, natural gas, and hydrogen vehicle refueling property bond</term> means any bond issued as part of an issue if—</text>
<paragraph id="H0BE7B5A34672480B8E09F35C3EDF7FF4"><enum>(1)</enum><text>100 percent of the available project proceeds of such issue are to be used for capital expenditures
incurred by a qualified issuer for 1 or more qualified electric, natural
gas, and hydrogen vehicle refueling properties,</text>
</paragraph><paragraph id="H7DE238704B754E70ABE2FC57D4CD2D6D"><enum>(2)</enum><text>the bond is issued by a qualified issuer, and</text>
</paragraph><paragraph id="H2A1A0AF595E24450BFB5CCEE636EDF4A"><enum>(3)</enum><text>the issuer designates such bond for purposes of this section.</text>
</paragraph></subsection><subsection id="H37F92C6AAA1944CD8B747FF23969DAE5"><enum>(b)</enum><header>Reduced Credit Amount</header><text>Notwithstanding paragraph (2) of section 54A(b), the annual credit determined with respect to any
qualified electric, natural gas, and hydrogen vehicle refueling property
bond is 70 percent of the amount which would (but for this subsection)
otherwise be determined under such paragraph with respect to such bond.</text>
</subsection><subsection id="H2D1B2719AD5D4AC1811DD052B2EAB404"><enum>(c)</enum><header>Limitation on Amount of Bonds Designated</header><text>The maximum aggregate face amount of bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated to such issuer
under subsection (e).</text>
</subsection><subsection id="H51C1A6F2B2844B52BB84FCDE79500346"><enum>(d)</enum><header>National Limitation on Amount of Bonds Designated</header><text>There is a national qualified electric, natural gas, and hydrogen vehicle refueling property bond
limitation of $750,000,000.</text>
</subsection><subsection id="H47EDA1FD1F71449980B765700F1CC72C"><enum>(e)</enum><header>Allocations</header><text>The Secretary shall make allocations of the amount of the national qualified electric, natural gas,
and hydrogen vehicle refueling property bond limitation described in
subsection (d) among purposes described in subsection (a)(1) in such
manner as the Secretary determines appropriate.</text>
</subsection><subsection id="H93119EEFF4A94AA58A4F9409055A02CC"><enum>(f)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="H6A33DE1C503E44CAB9459714C7CCEE49"><enum>(1)</enum><header>Qualified electric, natural gas, and hydrogen vehicle refueling property</header><text>The term <term>qualified electric, natural gas, and hydrogen vehicle refueling property</term> means any qualified alternative fuel vehicle refueling property (within the meaning of section
30C) which relates to electricity, natural gas, or hydrogen.</text>
</paragraph><paragraph id="HF6786B6B428A40CABEA92637A3CA07F8"><enum>(2)</enum><header>Qualified issuer</header>
<subparagraph id="H95DE856F1F2D4136BACB97BAFAAABE6D"><enum>(A)</enum><header>In general</header><text>The term <term>qualified issuer</term> means a public power provider, a cooperative electric company, or a governmental body.</text>
</subparagraph><subparagraph id="H9D2E45D4A7F3455CB1D3910088A8D5A5"><enum>(B)</enum><header>Governmental body</header><text>The term <term>governmental body</term> means any State or Indian tribal government, or any political subdivision thereof.</text>
</subparagraph><subparagraph id="HBBE6AA6AD5114F10B7FA1A0645D62914"><enum>(C)</enum><header>Public power provider</header><text>The term <term>public power provider</term> means a State utility that has a service obligation to end-users or to a distribution utility
(within the meaning of section 217 of the Federal Power Act, as in effect
on the date of the enactment of this section).</text>
</subparagraph><subparagraph id="HC89AEDB5D8D14E65B3EC1890389C873A"><enum>(D)</enum><header>Cooperative electric company</header><text>The term <term>cooperative electric company</term> means a mutual or cooperative electric company described in section 501(c)(12) or an organization
described in section 1381(a)(2)(C).</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H240D6853183C43888EA7D48C19BA4386"><enum>(d)</enum><header>Clerical Amendment</header><text>The table of sections for subpart I of part IV of subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H86DBCF9AB88D41E1AA719A65F558E8D4" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 54G. Qualified electric, natural gas, and hydrogen vehicle refueling property bonds.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEE7AC89E287D429F9C3B62A5709BE363"><enum>(e)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to obligations issued after the date of the
enactment of this Act.</text>
</subsection></section></subtitle><enum>II</enum><header>Repeal of fossil fuel subsidies for big oil companies</header>
<section display-inline="no-display-inline" id="H84D97917E07C437AB1C851D2E3EDE8E9" section-type="subsequent-section"><enum>201.</enum><header>Prohibition on using last-in, first-out accounting for major integrated oil companies</header>
<subsection id="H586991D120924269A43F5B86A2D5A3B7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/472">Section 472</external-xref> 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="HC27B4FC50F204194913A077575B09E1D" style="OLC">
<subsection id="H2315A061AAE94BF29F1144A6623FED1D"><enum>(h)</enum><header>Major integrated oil companies</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this section, a major integrated oil company (as defined in
section 167(h)(5)(B)) may not use the method provided in subsection (b) in
inventorying of any goods.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H555FEA48D7A34A539FFE74F2C331FA58"><enum>(b)</enum><header>Effective date and special rule</header>
<paragraph id="HC3529E6ACB8342B58233C9FB9C7F9AB4"><enum>(1)</enum><header>In general</header><text>The amendment made by subsection (a) shall apply to taxable years beginning after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="HFEAAEFCAE57846EFB676B010298190F3"><enum>(2)</enum><header>Change in method of accounting</header><text display-inline="yes-display-inline">In the case of any taxpayer required by the amendment made by this section to change its method of
accounting for its first taxable year beginning after the date of the
enactment of this Act—</text>
<subparagraph id="HCF4BE86ACF7C4F618065DACEA9EAC076"><enum>(A)</enum><text>such change shall be treated as initiated by the taxpayer,</text>
</subparagraph><subparagraph id="HF21CEF42EC984327AFB71728A0F66C9B"><enum>(B)</enum><text>such change shall be treated as made with the consent of the Secretary of the Treasury, and</text>
</subparagraph><subparagraph id="HD5E1F0370F434EC6AC93D1F978DD442D"><enum>(C)</enum><text>the net amount of the adjustments required to be taken into account by the taxpayer under section
481 of the Internal Revenue Code of 1986 shall be taken into account
ratably over a period (not greater than 8 taxable years) beginning with
such first taxable year.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H4B4F1B69D60A47F9BF4D743F9BCB1A9D"><enum>202.</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="HCCA61BCD23D548E5BCA18FCD300483C1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/901">Section 901</external-xref> 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="HA27CB06124184180A49DA5DAF5CDB703" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD634DF1EB311459386537334EA4A693E"><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="H302108685CCC4CEC810FC5CA9D569D85"><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="HDED767B5BFE64AD282DEC3149C3B799C"><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="HDFBEBD7513A5490C909CA6D89AB66A4E"><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="H174C684173E8405396EC042C6D79895C"><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="H051EDAC5CB3F4C50A9EEAAAB9627500C"><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="H84C2AA51802444C3B8AA1CADA4E517B6"><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="H6EFA82F393B54511AC14147210690A26"><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="H761A9044836645248437E915AB24A1F8"><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="H8F516083C21346CC83EE5448D687A2B9"><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="HB09E2026B2374F3287602AD9764DE49E"><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="HC1A4BEF65CCF4AB88E50EBDF3903D9C1"><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="H847C121DC9954CBAA75A813FC355BDCE"><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="H8B43F25392D242E3A9269CAD4F97B7F7"><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="HB591B4F8BD084416B5F72D1FF6F9030F"><enum>(b)</enum><header>Effective Date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H13D6591A96344528B144D84096F1062D"><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="H6F65026EC5A34F9F8D38567BC232DB9D"><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="H5BB4B79ECB2A4ADEA399866237800CE7"><enum>203.</enum><header>Limitation on section 199 deduction attributable to oil, natural gas, or primary products thereof</header>
<subsection id="H504FB21FCF6B42C5BA718567D85CD658"><enum>(a)</enum><header>Denial of deduction</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/199">section 199(c)</external-xref> 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="H49EF21E9596D4C3FA4ABF683736EE21F" style="OLC">
<subparagraph id="H071C82C930554082AA661A7042C28E47"><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="HEEF1FB4C30744DAB9F58055F22DDEE0E"><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="HC856C84175524B5CA5B871F5673B4BF9"><enum>204.</enum><header>Limitation on deduction for intangible drilling and development costs</header>
<subsection commented="no" display-inline="no-display-inline" id="H492645F67278424CA36A797C7F7FEDE2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(c)</external-xref> 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="H252136D3707941D1B779E4E399AD4414"><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="H69518C23900148968B9A97BB6340471D" section-type="subsequent-section"><enum>205.</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="HE31FCB0EE9C34709AA8517F519A66AAD"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/613A">Section 613A</external-xref> 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="H0AE9183B2FA04C90AE0863A8372383FC" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H94DF6DFFD0924128AD99B86EB1E2E8B6"><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="H2F798E128F534E63B78AA09084085887"><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="HC94296A2FB7348B4B271F8811324AD6D"><enum>206.</enum><header>Limitation on deduction for tertiary injectants</header>
<subsection commented="no" display-inline="no-display-inline" id="HA2102F53CCD04C54A69A809C7D8B1445"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/193">Section 193</external-xref> 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="H3650756227214A24BBB9A26EE3421DDB" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H0FC503B5AD2C4143AC8E4D1DA5A3CDED"><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="HF49BAC9283394D21909D71CEAA6A0C0E"><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>