[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2689 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2689

    To amend the Internal Revenue Code of 1986 to increase certain 
 alternative fuel and vehicle tax incentives and to eliminate certain 
   tax incentives for major integrated oil companies, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 1, 2006

  Ms. Collins 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 increase certain 
 alternative fuel and vehicle tax incentives and to eliminate certain 
   tax incentives for major integrated oil companies, 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. INCREASE IN CERTAIN ALTERNATIVE FUEL AND VEHICLE TAX 
              INCENTIVES.

    (a) Incentives for Alcohol Fuels.--
            (1) Income tax credit.--Section 40 of the Internal Revenue 
        Code of 1986 (relating to alcohol used as fuel) is amended--
                    (A) by striking ``60 cents'' each place it appears 
                and inserting ``$1.20'',
                    (B) by striking ``45 cents'' each place it appears 
                and inserting ``90 cents'',
                    (C) by striking ``2010'' in the table contained in 
                subsection (h)(2) and inserting ``2006'', and
                    (D) by adding at the end of such table the 
                following new item:

 
 
 
``2007 through 2010..............  $1.02................  75.56 cents''.
 

            (2) Excise tax credit.--Section 6426(b) of such Code 
        (relating to alcohol fuel mixture credit) is amended--
                    (A) by striking ``51 cents'' in paragraph (2)(A) 
                and inserting ``$1.02'', and
                    (B) by striking ``60 cents'' in paragraph (2)(B) 
                and inserting ``$1.20''.
    (b) Incentives for Biodiesel and Renewable Diesel Fuels.--
            (1) Income tax credit.--Section 40A of the Internal Revenue 
        Code of 1986 (relating to biodiesel and renewable diesel used 
        as fuel) is amended--
                    (A) by striking ``$1.00'' each place it appears and 
                inserting ``$2.00'',
                    (B) by striking ``50 cents'' each place it appears 
                and inserting ``$1.00'', and
                    (C) by striking ``10 cents'' in subsection 
                (b)(5)(A) and inserting ``20 cents''.
            (2) Excise tax credit.--Section 6426(c) of such Code 
        (relating to biodiesel mixture credit) is amended--
                    (A) by striking ``50 cents'' in paragraph (2)(A) 
                and inserting ``$1.00'', and
                    (B) by striking ``$1.00'' in paragraph (2)(B) and 
                inserting ``$2.00''.
    (c) Incentives for Alternative Fuels.--Subsections (d)(1) and 
(e)(1) of section 6426 of such the Internal Revenue Code of 1986 
(credit for alcohol fuel, biodiesel, and alternative fuel mixtures) are 
each amended by striking ``50 cents'' and inserting ``$1.00''.
    (d) Alternative Motor Vehicle Credit.--
            (1) New qualified fuel cell motor vehicle credit.--Section 
        30B(b) of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``$8,000'', ``$4,000'', 
                ``$10,000'', ``$20,000'', and ``$40,000'' in paragraph 
                (1) and inserting ``$16,000'', ``$8,000'', ``$20,000'', 
                ``$40,000'', and ``$80,000'', respectively, and
                    (B) by striking ``$1,000'', ``$1,500'', ``$2,000'', 
                ``$2,500'', ``$3,000'', ``$3,500'', and ``$4,000'' in 
                paragraph (2) and inserting ``$2,000'', ``$3,000'', 
                ``$4,000'', ``$5,000'', ``$6,000'', ``$7,000'', and 
                ``$8,000'', respectively.
            (2) New advanced lean burn technology motor vehicle 
        credit.--Section 30B(c) of such Code is amended--
                    (A) by striking ``$400'', ``$800'', ``$1,200'', 
                ``$1,600'', ``$2,000'', and ``$2,400'' in the table 
                contained in paragraph (2)(A)(i) and inserting 
                ``$800'', ``$1,600'', ``$2,400'', ``$3,200'', 
                ``$4,000'', and ``$4,800'', respectively, and
                    (B) by striking ``$250'', ``$500'', ``$750'', and 
                ``$1,000'' in the table contained in paragraph (2)(B) 
                and inserting ``$500'', ``$1,000'', ``$1,500'', and 
                ``$2,000'', respectively.
            (3) New qualified hybrid motor vehicle credit.--Section 
        30B(d)(2)(B)(iii) of such Code (relating to qualified 
        incremental hybrid cost) is amended by striking by striking 
        ``$7,500'', ``$15,000'', and ``$30,000'' and inserting 
        ``$15,000'', ``$30,000'', and ``$60,000'', respectively.
            (4) New qualified alternative fuel motor vehicle credit.--
        Section 30B(e)(3) of such Code (relating to incremental cost) 
        is amended by striking by striking ``$5,000'', ``$10,000'', 
        ``$25,000'', and ``$40,000'' and inserting ``$10,000'', 
        ``$20,000'', ``$50,000'', and ``$80,000'', respectively.
    (e) Alternative Fuel Vehicle Refueling Property Credit.--Section 
30C(b) of the Internal Revenue Code of 1986 (relating to limitation) is 
amended--
            (1) by striking ``$30,000'' in paragraph (1) and inserting 
        ``$60,000'', and
            (2) by striking ``$1,000'' in paragraph (2) and inserting 
        ``$2,000''.
    (f) Effective Dates.--
            (1) Fuels.--The amendments made by subsections (a), (b), 
        and (c) shall apply to any sale, use, or removal for any period 
        after the date of the enactment of this Act.
            (2) Vehicles and refueling property.--The amendments made 
        by subsections (d) and (e) shall apply to property placed in 
        service after the date of the enactment of this Act.

SEC. 2. ELIMINATION OF CERTAIN TAX INCENTIVES FOR MAJOR INTEGRATED OIL 
              COMPANIES.

    (a) Amortization of Geological and Geophysical Expenditures.--
            (1) In general.--Section 167(h) of the Internal Revenue 
        Code of 1986 (relating to amortization of geological and 
        geophysical expenditures) is amended by adding at the end the 
        following new paragraph:
            ``(5) Nonapplication to major integrated oil companies.--
        This subsection shall not apply to any sale during any taxable 
        year by a taxpayer which is--
                    ``(A) an integrated oil company (as defined in 
                section 291(b)(4)) which has an average daily worldwide 
                production of crude oil of at least 500,000 barrels for 
                such taxable year, or
                    ``(B) a related person to such company.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to amounts paid or incurred in taxable years 
        beginning after the date of the enactment of this Act.
    (b) Percentage Depletion Allowance for Oil and Gas Properties.--
            (1) In general.--Section 613A is amended by adding at the 
        end the following new subsection:
    ``(f) Nonapplication to Major Integrated Oil Companies.--The 
allowance for percentage depletion shall be zero during any taxable 
year with respect to a taxpayer which is--
            ``(1) an integrated oil company (as defined in section 
        291(b)(4)) which has an average daily worldwide production of 
        crude oil of at least 500,000 barrels for such taxable year, or
            ``(2) a related person to such company.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (c) Deduction for Intangible Drilling and Development Costs.--
            (1) In general.--Section 263(c) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        sentence: ``This subsection shall not apply during any taxable 
        year with respect to a taxpayer which is an integrated oil 
        company (as defined in section 291(b)(4)) which has an average 
        daily worldwide production of crude oil of at least 500,000 
        barrels for such taxable year or a related person to such 
        company.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to amounts paid or incurred in taxable years 
        beginning after the date of the enactment of this Act.

SEC. 3. PROHIBITION OF FUNDS FOR OIL AND NATURAL GAS ROYALTY RELIEF.

    (a) In General.--No funds made available under any Act for any 
fiscal year for royalty and offshore minerals management may be used by 
the Secretary of the Interior to provide relief from a requirement to 
pay a royalty for the production of oil or natural gas from Federal 
land during any period in which--
            (1) for the production of oil, the average price of crude 
        oil in the United States is greater than $55 a barrel; and
            (2) for the production of natural gas, the average price of 
        natural gas in the United States is $10 per 1,000 cubic feet of 
        natural gas.
    (b) Exception.--In administering funds made available for royalty 
or offshore minerals management, the Secretary of the Interior may 
waive or specify alternative requirements if the Secretary of the 
Interior determines that royalty relief is necessary to avoid oil or 
natural gas supply disruptions as a consequence of hurricanes or other 
natural disasters.
                                 <all>