[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 576 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 576

 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
           fuels produced from offshore deep-water projects.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 19, 1995

  Mr. Hayes 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 allow a tax credit for 
           fuels produced from offshore deep-water projects.

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

SECTION 1. CREDIT FOR FUELS PRODUCED FROM OFFSHORE DEEP-WATER PROJECTS.

    (a) Credit Allowed.--Subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to business 
related credits) is amended by adding at the end the following new 
section:

``SEC. 45C. FUELS PRODUCED FROM OFFSHORE DEEP-WATER PROJECTS.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
offshore production credit determined under this section for the 
taxable year shall be an amount equal to--
            ``(1) $5, multiplied by
            ``(2) the barrel-of-oil equivalent of qualified fuels 
        produced during the taxable year which are attributable to the 
        taxpayer.
    ``(b) Definition of Qualified Fuels.--For purposes of this section, 
the term `qualified fuels' means domestic crude oil or domestic natural 
gas produced from a property any portion of which is located under at 
least 400 meters of water.
    ``(c) Other Definitions.--For purposes of this section--
            ``(1) Barrel.--The term `barrel' means 42 United States 
        gallons.
            ``(2) Barrel-of-oil equivalent.--The term `barrel-of-oil 
        equivalent' means, with respect to a fuel other than domestic 
        crude oil, the amount of that fuel with a Btu content of 5.8 
        million.
            ``(3) Domestic crude oil and domestic natural gas.--The 
        terms `domestic crude oil' and `domestic natural gas' mean 
        crude oil and natural gas produced from a property located in 
        the United States (within the meaning of section 4612(a)(4)).
            ``(4) Property.--The term `property' has the meaning given 
        such term by section 614.
            ``(5) Production attributable to taxpayer.--The provisions 
        of section 29(d)(3) shall apply.
    ``(d) Application of Section.--This section shall apply with 
respect to qualified fuels produced after December 31, 1995, from a 
property which did not produce oil or natural gas in commercial 
quantities at any time before January 1, 1993.''
    (b) Credit May Offset Minimum Tax; No Carryback.--Section 38(c) of 
such Code is amended by adding at the end the following new paragraph:
            ``(3) Special rules for offshore production credit.--For 
        purposes of this title, the portion of the credit allowed by 
        this section which is attributable to the offshore production 
        credit determined under section 45C shall be treated as a 
        separate credit allowed under this subpart, except that--
                    ``(A) no credit carryback shall be allowed with 
                respect to such credit under section 39(a)(1), and
                    ``(B) the limitation under paragraph (1) applicable 
                to such credit shall be equal to the excess of--
                            ``(i) the taxpayer's net income tax, over
                            ``(ii) the credit allowable under this part 
                        (other than the portion of the credit to which 
                        this paragraph applies).''
    (c) Conforming Amendment.--Section 38(b) of such Code is amended by 
striking ``plus'' at the end of paragraph (10), by striking the period 
at the end of paragraph (11) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(12) the offshore production credit under section 
        45C(a).''
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following item:

                              ``Sec. 45C. Fuels produced from offshore 
                                        deep-water projects.''
    (e) Effective Date.--The amendments made by this section shall 
apply to production after December 31, 1995, in taxable years ending 
after such date.
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