[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3171 Introduced in Senate (IS)]

  2d Session
                                S. 3171

  To amend the Internal Revenue Code of 1986 to extend the section 29 
        credit for producing fuel from a nonconventional source.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 5 (legislative day, September 22), 2000

Mr. Murkowski (for himself, Mr. Breaux, and Mr. Stevens) introduced the 
     following bill; which was referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to extend the section 29 
        credit for producing fuel from a nonconventional source.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Security for American 
Consumers Act of 2000''.

SEC. 2. EXTENSION OF CREDIT FOR PRODUCING FUEL FROM A NONCONVENTIONAL 
              SOURCE.

    (a) Extension of Credit.--Subsection (f) of section 29 of the 
Internal Revenue Code of 1986 (relating to credit for producing fuel 
from a nonconventional source) is amended--
            (1) in paragraph (1)(A), by inserting before ``or'' the 
        following: ``or from a well drilled after the date of the 
        enactment of the Energy Security for American Consumers Act of 
        2000, and before January 1, 2011,'',
            (2) in paragraph (1)(B), by inserting before ``and'' at the 
        end the following: ``or placed in service after the date of the 
        enactment of the Energy Security for American Consumers Act of 
        2000, and before January 1, 2011,'', and
            (3) in paragraph (2), by striking ``2003'' and inserting 
        ``2013''.
    (b) Reduction in Amount of Credit by 20 percent Per Year Starting 
in 2007.-- Subsection (a) of section 29 of such Code is amended to read 
as follows:
    ``(a) Allowance of Credit.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year an 
        amount equal to--
                    ``(A) the applicable amount, multiplied by
                    ``(B) the barrel-of-oil equivalent of qualified 
                fuels--
                            ``(i) sold by the taxpayer to an unrelated 
                        person during the taxable year, and
                            ``(ii) the production of which is 
                        attributable to the taxpayer.
            ``(2) Applicable amount.--For purposes of paragraph (1), 
        the applicable amount is the amount determined in accordance 
        with the following table:

        ``In the case of taxable
                                                  The applicable amount
        years beginning in calendar year:
                                                              is:      
                2001 to 2008.........................        $3.00     
                2009.................................        $2.60     
                2010.................................        $2.00     
                2011.................................        $1.40     
                2012.................................        $0.80     
                2013 and thereafter..................      $0.00.''    
    (c) Credit Allowed Against Both Regular Tax and Alternative Minimum 
Tax.--Paragraph (6) of section 29(b) of such Code is amended to read as 
follows:
            ``(6) Application With Other Credits.--The credit allowed 
        by subsection (a) for any taxable year shall not exceed the 
        excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this section) and under 
                section 1397E.''
    (d) Qualified Fuels To Include Heavy Oil.--Subsection (c) of 
section 29 of such Code (defining qualified fuels) is amended--
            (1) in paragraph (1), by striking ``and'' at the end of 
        subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(D) heavy oil, as defined in section 
                613A(c)(6)(7).'', and
            (2) by adding at the end the following new paragraph:
            ``(4) Special rule for heavy oil.--Heavy oil shall be 
        considered to be a qualified fuel only if it is produced from a 
        well drilled, or in a facility placed in service, after the 
        date of the enactment of the Energy Security for American 
        Consumers Act of 2000, and before January 1, 2011.''
    (e) Repeal of Superseded Subsection.--Subsection (g) of section 29 
of such Code is repealed.
    (f) Effective Date.--The amendments made by this Act shall apply to 
taxable years beginning after December 31, 2000.
                                 <all>