[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2322 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2322

To amend the Internal Revenue Code of 1986 to change the determination 
  of the 50,000-barrel refinery limitation on oil depletion deduction 
          from a daily basis to an annual average daily basis.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 16, 1998

  Mr. Breaux (for himself, Mr. Nickles, and Mr. Helms) 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 change the determination 
  of the 50,000-barrel refinery limitation on oil depletion deduction 
          from a daily basis to an annual average daily basis.

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

SECTION 1. DETERMINATION OF LARGE REFINER EXCEPTION TO OIL DEPLETION 
              DEDUCTION.

    (a) In General.--Section 613A(d)(4) of the Internal Revenue Code of 
1986 (relating to certain refiners excluded) is amended to read as 
follows:
            ``(4) Certain refiners excluded.--If the taxpayer or a 
        related person engages in the refining of crude oil, subsection 
        (c) shall not apply to the taxpayer for a taxable year if the 
        average daily refinery runs of the taxpayer and the related 
        person for the taxable year exceed 50,000 barrels. For purposes 
        of this paragraph, the average daily refinery runs for any 
        taxable year shall be determined by dividing the aggregate 
        refinery runs for the taxable year by the number of days in the 
        taxable year.''
    (b) Effective Date.--The amendment made by this section applies to 
taxable years beginning after December 31, 1997.
                                 <all>