II 109th CONGRESS 1st Session S. 785 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 A BILL To amend the Internal Revenue Code of 1986 to modify the small refiner exception to the oil depletion deduction.

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.