[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 34 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 34

    To amend the Internal Revenue Code of 1986 to treat geological, 
  geophysical, and surface casing costs like intangible drilling and 
               development costs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 1995

  Mr. Breaux (for himself and Mr. Johnston) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to treat geological, 
  geophysical, and surface casing costs like intangible drilling and 
               development costs, and for other purposes.

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

SECTION 1. GEOLOGICAL, GEOPHYSICAL, AND SURFACE CASING COSTS TREATED 
              LIKE INTANGIBLE DRILLING AND DEVELOPMENT COSTS.

    (a) In General.--Subsection (c) of section 263 of the Internal 
Revenue Code of 1986 (relating to intangible drilling and development 
costs in the case of oil and gas wells and geothermal wells) is amended 
by inserting before the last sentence the following new sentence: ``In 
the case of oil and gas wells, the tax treatment which applies to the 
taxpayer's intangible drilling and development costs shall also apply 
to surface casing costs and to geological and geophysical costs for the 
purpose of ascertaining the existence, location, extent, or quality of 
any deposit of oil or gas within the United States (within the meaning 
of section 638(1)) or a possession of the United States (within the 
meaning of section 638(2)).''
    (b) Conforming Amendment.--Subparagraph (B) of section 57(a)(2) of 
such Code is amended by adding at the end the following new flush 
sentence:
                ``For purposes of clause (i), the term `intangible 
                drilling and development costs' includes surface casing 
                costs and geological and geophysical costs described in 
                section 263(c).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to costs paid or incurred after the date of the enactment of this 
Act in taxable years ending after such date.
                                 <all>