[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4532 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4532

  To amend the Internal Revenue Code of 1986 to define tar sands for 
purposes of the credit for producing fuels from nonconventional sources 
and to repeal the minimum tax preference for intangible drilling costs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 1994

   Mr. Thomas of California introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to define tar sands for 
purposes of the credit for producing fuels from nonconventional sources 
and to repeal the minimum tax preference for intangible drilling costs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TAR SANDS DEFINED FOR PURPOSES OF CREDIT FOR PRODUCING FUELS 
              FROM NONCONVENTIONAL SOURCES.

    (a) In General.--Subsection (c) of section 29 of the Internal 
Revenue Code of 1986 is amended by adding at the end thereof the 
following new paragraph:
            ``(4) Tar sands.--The term `tar sands' means any 
        consolidated or unconsolidated rock (other than coal, oil 
        shale, or gilsonite) that--
                    ``(A) contains a hydrocarbonaceous material with 
                gas free viscosity, at original reservoir temperature, 
                greater than 10,000 centipoise, or
                    ``(B) contains a hydrocarbonaceous material and is 
                produced by mining or quarrying.''
    (b) Effective Date.--Subsection (f) of section 29 of such Code is 
amended by adding at the end thereof the following new flush sentence:
``Notwithstanding the preceding sentence, this section shall apply to 
qualified fuels which are produced from tar sands from wells drilled, 
and mines and quarries first opened, after May 26, 1994, and before 
January 1, 1997, and which are sold before January 1, 2006.''

SEC. 2. REPEAL OF INTANGIBLE DRILLING COST PREFERENCE.

    (a) Alternative Minimum Tax.--Sections 56(g)(4)(D)(i), 57(a)(2), 
and 57(b) of the Internal Revenue Code of 1986 are hereby repealed.
    (b) Corporate Preference Items.--
            (1) In general.--Paragraph (1) of section 291(b) of such 
        Code is amended to read as follows:
            ``(1) In general.--The amount allowable as a deduction for 
        any taxable year under section 616(a) or 617(a) (determined 
        without regard to this section) shall be reduced by 30 
        percent.''
            (2) Conforming amendments.--
                    (A) Paragraphs (2) and (3) of section 291(b) of 
                such Code are each amended by striking ``263(c), 
                616(a),'' and inserting ``616(a)''.
                    (B) Section 291(b) of such Code is amended by 
                striking paragraph (4) and by redesignating paragraph 
                (5) as paragraph (4).
                    (C) Section 59(e)(2) of such Code is amended by 
                striking subparagraph (C) and by redesignating 
                subparagraphs (D) and (E) as subparagraphs (C) and (D).
                    (D) Section 263(c) of such Code is amended by 
                striking the last sentence.
                    (E) The subsection heading for section 291(b) of 
                such Code is amended by striking ``Intangible Drilling 
                Costs and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to costs paid or incurred after December 31, 1993, in taxable 
years ending after such date.

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