[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 785 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 785

To amend the Internal Revenue Code of 1986 to modify the small refiner 
               exception to the oil depletion deduction.


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                   IN THE SENATE OF THE UNITED STATES

                             April 14, 2005

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

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the small refiner 
               exception to the oil depletion deduction.

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

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

    (a) In General.--Paragraph (4) of section 613A(d) of the Internal 
Revenue Code of 1986 (relating to limitations on application of 
subsection (c)) is amended to read as follows:
            ``(4) Certain refiners excluded.--If the taxpayer or 1 or 
        more related persons 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 
        such persons for the taxable year exceed 75,000 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 shall apply 
to taxable years ending after the date of the enactment of this Act.
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