II 110th CONGRESS 1st Session S. 1591 IN THE SENATE OF THE UNITED STATES June 12, 2007 Mr. Hatch 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 allow full expensing for the cost of qualified refinery property in the year in which the property is placed in service, and to classify petroleum refining property as 5-year property for purposes of depreciation.

1.

Short title

This Act may be cited as the Refinery Investment Tax Assistance Act of 2007.

2.

Full expensing for qualified refinery property

(a)

In general

Subsection (a) of section 179C of the Internal Revenue Code of 1986 (relating to election to expense certain refineries) is amended by striking 50 percent of. (b)

Effective date

The amendment made by subsection (a) shall take effect as if included in section 1323 of the Energy Policy Act of 2005.

3.

Petroleum refining property treated as 5-year property

(a)

In general

Subparagraph (B) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to 5-year property) is amended by striking and at the end of clause (v), by striking the period at the end of clause (vi)(III) and inserting , and, and by adding at the end the following new clause: (vii)any petroleum refining property. . (b)

Petroleum refining property

Section 168(i) of such Code is amended by adding at the end the following new paragraph: (18)

Petroleum refining property

(A)

In general

The term petroleum refining property means any asset for petroleum refining, including assets used for the distillation, fractionation, and catalytic cracking of crude petroleum into gasoline and its other components. (B)

Asset must meet environmental laws

Such term shall not include any property which does not meet all applicable environmental laws in effect on the date such property was placed in service. For purposes of the preceding sentence, a waiver under the Clean Air Act shall not be taken into account in determining whether the applicable environmental laws have been met. (C)

Special rule for mergers and acquisitions

Such term shall not include any property with respect to which a deduction was taken under subsection (e)(3)(B) by any other taxpayer in any preceding year. . (c)

Effective date

(1)

In general

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. (2)

Exception

The amendments made by this section shall not apply to any property with respect to which the taxpayer has entered into a binding contract for the construction thereof on or before the date of the enactment of this Act.