[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1106 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1106

To provide a tax credit for the production of oil or gas from deposits 
  held in trust for, or held with restrictions against alienation by, 
                 Indian tribes and Indian individuals.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2001

 Mr. Domenici introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To provide a tax credit for the production of oil or gas from deposits 
  held in trust for, or held with restrictions against alienation by, 
                 Indian tribes and Indian individuals.

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

SECTION 1. CREDIT FOR PRODUCING INDIAN OIL OR GAS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 29 the following new section:

``SEC. 29A. CREDIT FOR PRODUCING INDIAN OIL OR GAS.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to--
            ``(1) $6.12, multiplied by
            ``(2) the barrel-of-oil equivalent of Indian oil or gas--
                    ``(A) sold by the taxpayer to an unrelated person 
                during the taxable year, and
                    ``(B) the production of which is attributable to 
                the taxpayer.
    ``(b) Limitations and Adjustments.--
            ``(1) Phaseout of credit.--The amount of the credit 
        allowable under subsection (a) shall be reduced by an amount 
        which bears the same ratio to the amount of the credit 
        (determined without regard to this paragraph) as--
                    ``(A) the amount by which the reference price for 
                the calendar year in which the sale occurs exceeds 
                $47.90, bears to
                    ``(B) $12.23.
            ``(2) Credit and phaseout adjustment based on inflation.--
        The $6.12 amount in subsection (a) and the $47.90 and $12.23 
        amounts in paragraph (1) shall each be adjusted by multiplying 
        such amount by the inflation adjustment factor for the calendar 
        year in which the sale occurs.
            ``(3) Limitation based on amount of tax.--The credit 
        allowed by subsection (a) for any taxable year shall not exceed 
        the sum of the regular tax and the tax imposed by section 55 
        for such taxable year, reduced by the sum of the credits 
        allowable under subpart A and sections 27 and 29.
            ``(4) Carryback and carryover of excess credits.--
                    ``(A) In general.--If the sum of the credit allowed 
                by this section for a taxable year plus the amount of 
                the carryforwards to the taxable year under this 
                paragraph exceeds the limitation imposed by paragraph 
                (3) for such taxable year (in this paragraph referred 
                to as the `excess credit year'), such excess shall be--
                            ``(i) a carryback to each of the 3 taxable 
                        years preceding the excess credit year, and
                            ``(ii) a carryforward to each of the 20 
                        taxable years following the excess credit year,
                and, subject to the limitation imposed by paragraph 
                (3), shall be taken into account under subsection (a).
                    ``(B) Amount carried to each year.--
                            ``(i) Entire amount carried to first 
                        year.--The entire amount of the excess credit 
                        for an excess credit year shall be carried 
                        first to the earliest of the 23 taxable years 
                        to which (by reason of this paragraph) such 
                        credit may be carried.
                            ``(ii) Amount carried to other 22 years.--
                        The amount of the excess credit for the excess 
                        credit year shall be carried to each of the 
                        other 22 years to the extent that such excess 
                        credit may not be taken into account under 
                        subsection (a) for a prior taxable year because 
                        of the limitation imposed by paragraph (3) of 
                        this subsection.
    ``(c) Definition of Indian Oil or Gas.--For purposes of this 
section, the term `Indian oil or gas' means oil or gas that is 
produced--
            ``(1) from oil or gas deposits that are either held by the 
        United States in trust for the benefit of any Indian tribe or 
        individual Indian or held by any Indian tribe or individual 
Indian subject to a restriction imposed by the United States against 
alienation, and
            ``(2) pursuant to a lease or other agreement issued or 
        approved by the United States.
    ``(d) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, pueblo, community, rancheria, 
        colony, or other group that owns land or interests in land the 
        title to which is held in trust by the United States or is 
        subject to a restriction against alienation imposed by the 
        United States, including--
                    ``(A) any Native village (as defined in section 
                3(c) of the Alaska Native Claims Settlement Act (43 
                U.S.C. 1602(c), whether organized traditionally or 
                pursuant to the Act of June 18, 1934 (commonly known as 
                the Indian Reorganization Act (25 U.S.C. 461 et seq.)), 
                and
                    ``(B) any Regional Corporation or Village 
                Corporation (as defined in sections 3(g) and 3(j) of 
                the Alaska Native Claims Settlement Act (43 U.S.C. 
                1602(g) and 1602(j)), respectively),
        that is recognized as eligible for the special programs and 
        services provided by the United States under Federal law to 
        Indians because of their status as Indians.
            ``(2) Individual indian.--The term `individual Indian' 
        means any individual member of an Indian tribe or Alaska Native 
        who owns land or interests in land the title to which is held 
        in trust by the United States or is subject to a restriction 
        against alienation imposed by the United States.
            ``(3) Computation of inflation adjustment factor and 
        reference price.--The inflation adjustment factor and the 
        reference price for any calendar year shall be determined as 
        provided in section 29(d)(2), except such section shall be 
        applied by substituting `calendar year 2001' for `calendar year 
        1979' in subparagraph (B) thereof.
            ``(4) Other definitions.--The terms `barrel-of-oil 
        equivalent' and `barrel' have the meanings given such terms by 
        paragraphs (5) and (6) of section 29(d), respectively.
            ``(5) Certain rules made applicable.--For purposes of this 
        section, paragraphs (3), (7), and (8) of section 29(d) shall 
        apply.
    ``(e) Application of Section.--This section shall apply with 
respect to Indian oil or gas which is produced after December 31, 2001, 
except that this section shall not apply with respect to any Indian oil 
or gas for which a credit is allowed under section 29 for the taxable 
year.''.
    (b) Alternative Minimum Tax Conforming Amendments.--
            (1) Alternative minimum tax.--Section 59(b) of the Internal 
        Revenue Code of 1986 is amended--
                    (A) by adding at the end the following new 
                sentence: ``In the case of any taxpayer for whom the 
                Indian oil or gas credit is allowable under section 29A 
                for the taxable year, alternative minimum taxable 
                income shall not include any income derived from 
                production for which a credit is allowed under section 
                29A.'', and
                    (B) by inserting ``29A,'' before ``30A'' in the 
                heading thereof.
            (2) Regular tax.--Section 55(c)(1) of such Code is amended 
        by inserting ``the Indian oil or gas credit allowable under 
        section 29A,'' after ``under section 27(b),''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 29 the 
following new item:

                              ``Sec. 29A. Credit for producing Indian 
                                        oil or gas.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2001, and to 
carrybacks from such years.
                                 <all>