<enum>I</enum><header>Repeal of oil industry tax breaks</header> <section id="id481E1BBC828442E892234A3DB3A12B89" section-type="subsequent-section"><enum>101.</enum><header>7-year amortization of geological and geophysical expenditures for certain major integrated oil companies</header> <subsection id="id6A86EA4E8DCA4D9C967085E2777AD7C3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (A) of section 167(h)(5) of the Internal Revenue Code of 1986 (relating to special rule for major integrated oil companies) is amended by striking <quote>5-year</quote> and inserting <quote>7-year</quote>.</text> </subsection><subsection id="id2F5FF569603D4A4E8B58C9E093C4000A"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.</text> </subsection></section><section id="id9D09F0BB304440B1A4126D0F9E0FA3CF"><enum>102.</enum><header>Limitation on percentage depletion</header> <subsection commented="no" display-inline="no-display-inline" id="id908B340EAAC34401A2D81C86C52AFC9E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="idD8399830EF764C10A5DE61E3A92458D0" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id90DB761011E24F18AE7F236CC14EDAD0"><enum>(f)</enum><header>Limitation on aggregate amount of depletion</header><text display-inline="yes-display-inline">In the case of any oil or gas well, the allowance for depletion allowed under section 613 shall not exceed the basis of the taxpayer in such property.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id8D9E1831D80B424BB03C01D259F28F61"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="idA6E5932EA7D940E1ACD86609841E787C"><enum>103.</enum><header>Termination of treatment of natural gas distribution lines as 15-year property</header> <subsection id="id1D6A0F9D5F8C47E1BF340DDFB5AFF073"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 168(e)(3)(E)(viii) of the Internal Revenue Code of 1986 is amended by striking <quote>January 1, 2011</quote> and inserting <quote>the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote>.</text> </subsection><subsection id="idE31037C8D4A545B0B2799318225F77F1"><enum>(b)</enum><header>Effective date</header> <paragraph id="id6AED58726AF844EF89C854A477357875"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </paragraph><paragraph id="id241FD88E74B740E9983E8380976BC9EA"><enum>(2)</enum><header>Exception</header><text>The amendments made by this section shall not apply to any property with respect to which the taxpayer or a related party has entered into a binding contract for the construction thereof on or before February 16, 2007, or, in the case of self-constructed property, has started construction on or before such date.</text> </paragraph></subsection></section><section id="id2AEA86B15ECA47119F8313E6E3F74540"><enum>104.</enum><header>Termination of temporary expensing for equipment used in refining of liquid fuels</header> <subsection id="id7E9F7BF662A34778BB72FF3A5073AE1B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 179C(c)(1) of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="id26775B0B3A3D42EA8A6BA4D9B1E4C796"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2012</quote> and inserting <quote>the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote>, and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id72D09573C6304DA78E0BBD439D4D7DB7"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2008</quote> and inserting <quote>the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id06907FA4416E4BC3887940271797D3EC"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="id828F26E9F5B34ABF8BD69F31147278A7"><enum>105.</enum><header>Natural gas gathering lines treated as 15-year property</header> <subsection id="id0F6327E7BF7C44B0957AD9686EE6C65A"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of section 168(e)(3) of the Internal Revenue Code of 1986, as amended by section 2, is amended by inserting <quote>, and</quote> at the end of clause (vi), by striking the period at the end of clause (vii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="idF89A52B16B7743EE8FD5572B7C0B3A32" style="OLC"> <clause id="id31E52952A2234ECEA042F16580AEF364"><enum>(viii)</enum><text>any natural gas gathering line the original use of which commences with the taxpayer after the date of the enactment of this clause.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idBDFDF64340F24E16A8A823DA3E1DD8B1"><enum>(b)</enum><header>Alternative system</header><text>The table contained in section 168(g)(3)(B) of such Code (relating to special rule for property assigned to classes), as amended by section 3, is amended by inserting after the item relating to subparagraph (E)(vii) the following new item:</text> <quoted-block display-inline="no-display-inline" id="id27343782947B4E78B0277FB5FE20DF17" style="OLC"> <table blank-lines-before="1" line-rules="no-gen" table-type="subformat"> <tgroup cols="2"> <tbody> <row><entry colname="I34">(E)(viii)</entry><entry colname="I07">22</entry> </row> </tbody> </tgroup></table> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id2235708B449B4CC4A1366E371AFFAB2A"><enum>(c)</enum><header>Conforming amendment</header><text>Clause (iv) of section 168(e)(3) of such Code is amended by inserting <quote>and before the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote> after <quote>April 11, 2005</quote>.</text> </subsection><subsection id="idC94CA1B74A074F36BC4615FCA13A71B1"><enum>(d)</enum><header>Effective date</header> <paragraph id="id924F06B194D54B3DADA45A5B26200687"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </paragraph><paragraph id="idA8295784D89040C19829FACCB3B3970E"><enum>(2)</enum><header>Exception</header><text>The amendments made by this section shall not apply to any property with respect to which the taxpayer or a related party has entered into a binding contract for the construction thereof on or before February 16, 2007, or, in the case of self-constructed property, has started construction on or before such date.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id2CE6516F2DA64A6E93B3C869697D6E09" section-type="subsequent-section"><enum>106.</enum><header>Termination of deduction for intangible drilling and development costs</header> <subsection commented="no" display-inline="no-display-inline" id="id56B73721D0684CB3BFF8B8062D4602BE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: <quote>This subsection shall not apply to any taxable year beginning after the date of the enactment of this sentence.</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idBD6029EB759043409DE198119D5AE5FC"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Paragraphs (2) and (3) of section 291(b) of such Code are each amended by striking <quote>section 263(c), 616(a),</quote> and inserting <quote>section 616(a)</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id742F04098EB449F38FF49832231EF9EE"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id423F5644EB4140EAACD358B63318C69D" section-type="subsequent-section"><enum>107.</enum><header>Termination of enhanced oil recovery credit</header> <subsection commented="no" display-inline="no-display-inline" id="id8DFED53EB67C414DA99CDA87BF5CC9D1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id20CBE6C2C1FE4B20ACAD489B3C962E2A" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id7ED17100F443455FA735D678BA690C1F"><enum>(f)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any taxable year beginning after the date of the enactment of this subsection.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idFB232CD12AA94AE686444E2AAEBE32B1"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idE680F7BBD76B45EBA9ADBB3404AAD551"><enum>108.</enum><header>Termination of credit for producing oil and gas from marginal wells</header> <subsection commented="no" display-inline="no-display-inline" id="id6E0825690FA14BEC955C2464CC82826B"><enum>(a)</enum><header>In general</header><text>Section 45I of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id54FA916CDE424F8C88F85B7A2C50EAA9" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="idE2B58AD0904C4FC0AB2C0BE2CE9A1912"><enum>(e)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any taxable year beginning after the date of the enactment of this subsection.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idDEE186FE629B444685689383C59252B3"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id8FAB36593F244AA496E7EBB31A87B5A1"><enum>109.</enum><header>Termination of treatment of Alaska natural gas pipelines as 7-year property</header> <subsection id="id771C624FD74A43638367848830EB7928"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 168(e)(3)(C)(iii) of the Internal Revenue Code of 1986 is amended by inserting <quote>placed in service before the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote> after <quote>Alaska natural gas pipeline</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idCDBEBCE034784936858CB65C93F2F6BE"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id4B600C290F934C59B4DDCEE1CFCEC7FF"><enum>110.</enum><header>Denial of deduction for large integrated oil companies for income attributable to domestic production of oil, natural gas, or primary products thereof</header> <subsection id="HE7720DBCCA0740F6A83E6025EBAAE0E3"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 (relating to exceptions) is amended by striking <quote>or</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, or</quote>, and by inserting after clause (iii) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H5FA1B25B95584EE6867BD7845D078D66" style="OLC"> <clause id="HF7E3B4294E564BBA86ED6D31F0B39249"><enum>(iv)</enum><text>in the case of a taxpayer which is a large integrated oil company, the sale, exchange, or other disposition of oil, natural gas, or any primary product thereof.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H337BAC6856294E21A82615CDC3B69E4"><enum>(b)</enum><header>Primary product</header><text>Section 199(c)(4)(B) of such Code is amended by adding at the end the following flush sentence:</text> <quoted-block display-inline="no-display-inline" id="HF251D31B3E3F423BABFDA5605DA3E265" style="OLC"> <quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For purposes of clause (iv), the term <term>primary product</term> has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H77F281E899EA4B77AC11916212D1BDEC"><enum>(c)</enum><header>Large integrated oil company</header><text>Subsection (c) of section 199 of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id8A4C21C544AE4E0DA38427CBB209DB7F" style="OLC"> <paragraph id="idD65F7A36A37B47619C809AD6C9198421"><enum>(8)</enum><header>Large integrated oil company</header><text>For purposes of this subsection, the term <term>large integrated oil company</term> means, with respect to any taxable year, an integrated oil company (as defined in section 291(b)(4)) which—</text> <subparagraph id="id9F8E71849E4A4524A122D25523F403A9"><enum>(A)</enum><text>had gross receipts in excess of $1,000,000,000 for such taxable year, and</text> </subparagraph><subparagraph id="id8EA4480C1F244C27A0450EAA8FE8535E"><enum>(B)</enum><text>has an average daily worldwide production of crude oil of at least 500,000 barrels for such taxable year.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idE249238B30B4448BAE921B625886D2C5"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </subsection></section><section changed="added" commented="no" display-inline="no-display-inline" id="HFB1B016D4C5A4D1EB2C3A3BD0B82E633" section-type="subsequent-section"><enum>111.</enum><header>Revaluation of LIFO inventories of large integrated oil companies</header> <subsection commented="no" display-inline="no-display-inline" id="H943D2FE8CB044122BB6911FA1D18A45C"><enum>(a)</enum><header>General rule</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, if a taxpayer is an applicable integrated oil company for its last taxable year ending in calendar year 2006, the taxpayer shall—</text> <paragraph commented="no" display-inline="no-display-inline" id="HC684488B54644AB9B38DC6118E3B0757"><enum>(1)</enum><text display-inline="yes-display-inline">increase, effective as of the close of such taxable year, the value of each historic LIFO layer of inventories of crude oil, natural gas, or any other petroleum product (within the meaning of section 4611) by the layer adjustment amount, and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BE33C47E3A7489D867D6D34C9F4193A"><enum>(2)</enum><text display-inline="yes-display-inline">decrease its cost of goods sold for such taxable year by the aggregate amount of the increases under paragraph (1).</text> </paragraph><continuation-text commented="no" continuation-text-level="subsection">If the aggregate amount of the increases under paragraph (1) exceed the taxpayer’s cost of goods sold for such taxable year, the taxpayer’s gross income for such taxable year shall be increased by the amount of such excess.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="HE6D7AE7E6628455FAF76064BBFDE6FE3"><enum>(b)</enum><header>Layer adjustment amount</header><text display-inline="yes-display-inline">For purposes of this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="H929896D689B44D3398957F5173FFC989"><enum>(1)</enum><header>In General</header><text display-inline="yes-display-inline">The term <term>layer adjustment amount</term> means, with respect to any historic LIFO layer, the product of—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H2AE21466628F4571ACFCB46334502FC9"><enum>(A)</enum><text display-inline="yes-display-inline">$18.75, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1E6C75164F85482487FCACF9BCBBED6D"><enum>(B)</enum><text display-inline="yes-display-inline">the number of barrels of crude oil (or in the case of natural gas or other petroleum products, the number of barrel-of-oil equivalents) represented by the layer.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H98DE447F8338482796DD71D73561307D"><enum>(2)</enum><header>Barrel-of-oil equivalent</header><text display-inline="yes-display-inline">The term <term>barrel-of-oil equivalent</term> has the meaning given such term by section 29(d)(5) (as in effect before its redesignation by the Energy Tax Incentives Act of 2005).</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H823F5AE077364670838B208D62FEBCB3"><enum>(c)</enum><header>Application of requirement</header> <paragraph commented="no" display-inline="no-display-inline" id="H8089491C93434A8CB5A8A8ED43853A03"><enum>(1)</enum><header>No change in method of accounting</header><text display-inline="yes-display-inline">Any adjustment required by this section shall not be treated as a change in method of accounting.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A2B2DF22A994CE58C0CCD30A228CADE"><enum>(2)</enum><header>Underpayments of estimated tax</header><text display-inline="yes-display-inline">No addition to the tax shall be made under section 6655 of the Internal Revenue Code of 1986 (relating to failure by corporation to pay estimated tax) with respect to any underpayment of an installment required to be paid with respect to the taxable year described in subsection (a) to the extent such underpayment was created or increased by this section.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA790D6C9E3284EE7B14EC2721B7F912D"><enum>(d)</enum><header>Applicable integrated oil company</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>applicable integrated oil company</term> means an integrated oil company (as defined in section 291(b)(4) of the Internal Revenue Code of 1986) which has an average daily worldwide production of crude oil of at least 500,000 barrels for the taxable year and which had gross receipts in excess of $1,000,000,000 for its last taxable year ending during calendar year 2006. For purposes of this subsection all persons treated as a single employer under subsections (a) and (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as 1 person and, in the case of a short taxable year, the rule under section 448(c)(3)(B) shall apply.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="ID461686B9C76D40CFB5BD684307169AC9" section-type="subsequent-section"><enum>112.</enum><header>Modifications of foreign tax credit rules applicable to large integrated oil companies which are dual capacity taxpayers</header> <subsection commented="no" display-inline="no-display-inline" id="ID9C4EDF23AFFF4BF5896830453DA13438"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 901 of the Internal Revenue Code of 1986 (relating to credit for taxes of foreign countries and of possessions of the United States) is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="IDF50138C11B0240AD95A6A6111D3509E2" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="ID84DA07D3B4594651B4AE3518BE91F2BD"><enum>(m)</enum><header>Special rules relating to large integrated oil companies which are dual capacity taxpayers</header> <paragraph commented="no" display-inline="no-display-inline" id="ID9827B255162D45D38EB3C8CDF554621F"><enum>(1)</enum><header>General rule</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a large integrated oil company to a foreign country or possession of the United States for any period shall not be considered a tax—</text> <subparagraph commented="no" display-inline="no-display-inline" id="IDCE3C7E227BE64219B1B1904923B58042"><enum>(A)</enum><text display-inline="yes-display-inline">if, for such period, the foreign country or possession does not impose a generally applicable income tax, or</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDC7D77DF9416549DD85EACF30B4EFBF67"><enum>(B)</enum><text display-inline="yes-display-inline">to the extent such amount exceeds the amount (determined in accordance with regulations) which—</text> <clause commented="no" display-inline="no-display-inline" id="ID75F904CFB6824DF597DC9C371210ECEC"><enum>(i)</enum><text display-inline="yes-display-inline">is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or</text> </clause><clause commented="no" display-inline="no-display-inline" id="IDCAC1599B628E4D4FBC7C347A6B311A27"><enum>(ii)</enum><text display-inline="yes-display-inline">would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.</text> </clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID86BB4AB04C6546DB8D02954A689C4E0C"><enum>(2)</enum><header>Dual capacity taxpayer</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>dual capacity taxpayer</term> means, with respect to any foreign country or possession of the United States, a person who—</text> <subparagraph commented="no" display-inline="no-display-inline" id="IDEAF2B1038ACE4C11AA1005739F089D8F"><enum>(A)</enum><text display-inline="yes-display-inline">is subject to a levy of such country or possession, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID658FB5DEAAB14253B42824ECDD498CF3"><enum>(B)</enum><text display-inline="yes-display-inline">receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB647D940AF2944E2956A11AB7DE06364"><enum>(3)</enum><header>Generally applicable income tax</header><text display-inline="yes-display-inline">For purposes of this subsection—</text> <subparagraph commented="no" display-inline="no-display-inline" id="ID818F74AAAC284F019115D0EC6DFE384D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>generally applicable income tax</term> means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID17598F39A44F4FAE9F87086A856F3081"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—</text> <clause commented="no" display-inline="no-display-inline" id="ID58A0F65C518848259444B5546A2F00C4"><enum>(i)</enum><text display-inline="yes-display-inline">persons who are not dual capacity taxpayers, and</text> </clause><clause commented="no" display-inline="no-display-inline" id="ID4EA4A5D612D4460D9B6ACD5CA8751394"><enum>(ii)</enum><text display-inline="yes-display-inline">persons who are citizens or residents of the foreign country or possession.</text> </clause></subparagraph></paragraph><paragraph id="ID1406d3d0572b4d64a900f3fe5ce03d8d"><enum>(4)</enum><header>Large integrated oil company</header><text>For purposes of this subsection, the term <term>large integrated oil company</term> means, with respect to any taxable year, an integrated oil company (as defined in section 291(b)(4)) which—</text> <subparagraph id="ID6fe553e68b6a4d5592a94ddff53a13b7"><enum>(A)</enum><text>had gross receipts in excess of $1,000,000,000 for such taxable year, and</text> </subparagraph><subparagraph id="idC3233017AE5D42F98420E31C22863C6D"><enum>(B)</enum><text>has an average daily worldwide production of crude oil of at least 500,000 barrels for such taxable year.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID0B28822B86AA41AAACB7D0314D985953"><enum>(b)</enum><header>Effective Date</header> <paragraph commented="no" display-inline="no-display-inline" id="ID4550AC5485B14FE9AB92FDABBDC45E95"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID51BE7A83C05444BFB3AD41CDC7FE01DA"><enum>(2)</enum><header>Contrary treaty obligations upheld</header><text display-inline="yes-display-inline">The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.</text> </paragraph></subsection></section>

Short title

This Act may be cited as the

Oil Industry Tax Break Repeal Act of 2007

<enum>I</enum><header>Repeal of oil industry tax breaks</header> <section id="id481E1BBC828442E892234A3DB3A12B89" section-type="subsequent-section"><enum>101.</enum><header>7-year amortization of geological and geophysical expenditures for certain major integrated oil companies</header> <subsection id="id6A86EA4E8DCA4D9C967085E2777AD7C3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (A) of section 167(h)(5) of the Internal Revenue Code of 1986 (relating to special rule for major integrated oil companies) is amended by striking <quote>5-year</quote> and inserting <quote>7-year</quote>.</text> </subsection><subsection id="id2F5FF569603D4A4E8B58C9E093C4000A"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.</text> </subsection></section><section id="id9D09F0BB304440B1A4126D0F9E0FA3CF"><enum>102.</enum><header>Limitation on percentage depletion</header> <subsection commented="no" display-inline="no-display-inline" id="id908B340EAAC34401A2D81C86C52AFC9E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="idD8399830EF764C10A5DE61E3A92458D0" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id90DB761011E24F18AE7F236CC14EDAD0"><enum>(f)</enum><header>Limitation on aggregate amount of depletion</header><text display-inline="yes-display-inline">In the case of any oil or gas well, the allowance for depletion allowed under section 613 shall not exceed the basis of the taxpayer in such property.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="id8D9E1831D80B424BB03C01D259F28F61"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="idA6E5932EA7D940E1ACD86609841E787C"><enum>103.</enum><header>Termination of treatment of natural gas distribution lines as 15-year property</header> <subsection id="id1D6A0F9D5F8C47E1BF340DDFB5AFF073"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 168(e)(3)(E)(viii) of the Internal Revenue Code of 1986 is amended by striking <quote>January 1, 2011</quote> and inserting <quote>the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote>.</text> </subsection><subsection id="idE31037C8D4A545B0B2799318225F77F1"><enum>(b)</enum><header>Effective date</header> <paragraph id="id6AED58726AF844EF89C854A477357875"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </paragraph><paragraph id="id241FD88E74B740E9983E8380976BC9EA"><enum>(2)</enum><header>Exception</header><text>The amendments made by this section shall not apply to any property with respect to which the taxpayer or a related party has entered into a binding contract for the construction thereof on or before February 16, 2007, or, in the case of self-constructed property, has started construction on or before such date.</text> </paragraph></subsection></section><section id="id2AEA86B15ECA47119F8313E6E3F74540"><enum>104.</enum><header>Termination of temporary expensing for equipment used in refining of liquid fuels</header> <subsection id="id7E9F7BF662A34778BB72FF3A5073AE1B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 179C(c)(1) of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="id26775B0B3A3D42EA8A6BA4D9B1E4C796"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2012</quote> and inserting <quote>the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote>, and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id72D09573C6304DA78E0BBD439D4D7DB7"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2008</quote> and inserting <quote>the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id06907FA4416E4BC3887940271797D3EC"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section id="id828F26E9F5B34ABF8BD69F31147278A7"><enum>105.</enum><header>Natural gas gathering lines treated as 15-year property</header> <subsection id="id0F6327E7BF7C44B0957AD9686EE6C65A"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of section 168(e)(3) of the Internal Revenue Code of 1986, as amended by section 2, is amended by inserting <quote>, and</quote> at the end of clause (vi), by striking the period at the end of clause (vii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="idF89A52B16B7743EE8FD5572B7C0B3A32" style="OLC"> <clause id="id31E52952A2234ECEA042F16580AEF364"><enum>(viii)</enum><text>any natural gas gathering line the original use of which commences with the taxpayer after the date of the enactment of this clause.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idBDFDF64340F24E16A8A823DA3E1DD8B1"><enum>(b)</enum><header>Alternative system</header><text>The table contained in section 168(g)(3)(B) of such Code (relating to special rule for property assigned to classes), as amended by section 3, is amended by inserting after the item relating to subparagraph (E)(vii) the following new item:</text> <quoted-block display-inline="no-display-inline" id="id27343782947B4E78B0277FB5FE20DF17" style="OLC"> <table blank-lines-before="1" line-rules="no-gen" table-type="subformat"> <tgroup cols="2"> <tbody> <row><entry colname="I34">(E)(viii)</entry><entry colname="I07">22</entry> </row> </tbody> </tgroup></table> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id2235708B449B4CC4A1366E371AFFAB2A"><enum>(c)</enum><header>Conforming amendment</header><text>Clause (iv) of section 168(e)(3) of such Code is amended by inserting <quote>and before the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote> after <quote>April 11, 2005</quote>.</text> </subsection><subsection id="idC94CA1B74A074F36BC4615FCA13A71B1"><enum>(d)</enum><header>Effective date</header> <paragraph id="id924F06B194D54B3DADA45A5B26200687"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </paragraph><paragraph id="idA8295784D89040C19829FACCB3B3970E"><enum>(2)</enum><header>Exception</header><text>The amendments made by this section shall not apply to any property with respect to which the taxpayer or a related party has entered into a binding contract for the construction thereof on or before February 16, 2007, or, in the case of self-constructed property, has started construction on or before such date.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id2CE6516F2DA64A6E93B3C869697D6E09" section-type="subsequent-section"><enum>106.</enum><header>Termination of deduction for intangible drilling and development costs</header> <subsection commented="no" display-inline="no-display-inline" id="id56B73721D0684CB3BFF8B8062D4602BE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: <quote>This subsection shall not apply to any taxable year beginning after the date of the enactment of this sentence.</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idBD6029EB759043409DE198119D5AE5FC"><enum>(b)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Paragraphs (2) and (3) of section 291(b) of such Code are each amended by striking <quote>section 263(c), 616(a),</quote> and inserting <quote>section 616(a)</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id742F04098EB449F38FF49832231EF9EE"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id423F5644EB4140EAACD358B63318C69D" section-type="subsequent-section"><enum>107.</enum><header>Termination of enhanced oil recovery credit</header> <subsection commented="no" display-inline="no-display-inline" id="id8DFED53EB67C414DA99CDA87BF5CC9D1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id20CBE6C2C1FE4B20ACAD489B3C962E2A" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="id7ED17100F443455FA735D678BA690C1F"><enum>(f)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any taxable year beginning after the date of the enactment of this subsection.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idFB232CD12AA94AE686444E2AAEBE32B1"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idE680F7BBD76B45EBA9ADBB3404AAD551"><enum>108.</enum><header>Termination of credit for producing oil and gas from marginal wells</header> <subsection commented="no" display-inline="no-display-inline" id="id6E0825690FA14BEC955C2464CC82826B"><enum>(a)</enum><header>In general</header><text>Section 45I of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id54FA916CDE424F8C88F85B7A2C50EAA9" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="idE2B58AD0904C4FC0AB2C0BE2CE9A1912"><enum>(e)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any taxable year beginning after the date of the enactment of this subsection.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idDEE186FE629B444685689383C59252B3"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id8FAB36593F244AA496E7EBB31A87B5A1"><enum>109.</enum><header>Termination of treatment of Alaska natural gas pipelines as 7-year property</header> <subsection id="id771C624FD74A43638367848830EB7928"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 168(e)(3)(C)(iii) of the Internal Revenue Code of 1986 is amended by inserting <quote>placed in service before the date of the enactment of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title></quote> after <quote>Alaska natural gas pipeline</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idCDBEBCE034784936858CB65C93F2F6BE"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id4B600C290F934C59B4DDCEE1CFCEC7FF"><enum>110.</enum><header>Denial of deduction for large integrated oil companies for income attributable to domestic production of oil, natural gas, or primary products thereof</header> <subsection id="HE7720DBCCA0740F6A83E6025EBAAE0E3"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 (relating to exceptions) is amended by striking <quote>or</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, or</quote>, and by inserting after clause (iii) the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H5FA1B25B95584EE6867BD7845D078D66" style="OLC"> <clause id="HF7E3B4294E564BBA86ED6D31F0B39249"><enum>(iv)</enum><text>in the case of a taxpayer which is a large integrated oil company, the sale, exchange, or other disposition of oil, natural gas, or any primary product thereof.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H337BAC6856294E21A82615CDC3B69E4"><enum>(b)</enum><header>Primary product</header><text>Section 199(c)(4)(B) of such Code is amended by adding at the end the following flush sentence:</text> <quoted-block display-inline="no-display-inline" id="HF251D31B3E3F423BABFDA5605DA3E265" style="OLC"> <quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For purposes of clause (iv), the term <term>primary product</term> has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H77F281E899EA4B77AC11916212D1BDEC"><enum>(c)</enum><header>Large integrated oil company</header><text>Subsection (c) of section 199 of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id8A4C21C544AE4E0DA38427CBB209DB7F" style="OLC"> <paragraph id="idD65F7A36A37B47619C809AD6C9198421"><enum>(8)</enum><header>Large integrated oil company</header><text>For purposes of this subsection, the term <term>large integrated oil company</term> means, with respect to any taxable year, an integrated oil company (as defined in section 291(b)(4)) which—</text> <subparagraph id="id9F8E71849E4A4524A122D25523F403A9"><enum>(A)</enum><text>had gross receipts in excess of $1,000,000,000 for such taxable year, and</text> </subparagraph><subparagraph id="id8EA4480C1F244C27A0450EAA8FE8535E"><enum>(B)</enum><text>has an average daily worldwide production of crude oil of at least 500,000 barrels for such taxable year.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="idE249238B30B4448BAE921B625886D2C5"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </subsection></section><section changed="added" commented="no" display-inline="no-display-inline" id="HFB1B016D4C5A4D1EB2C3A3BD0B82E633" section-type="subsequent-section"><enum>111.</enum><header>Revaluation of LIFO inventories of large integrated oil companies</header> <subsection commented="no" display-inline="no-display-inline" id="H943D2FE8CB044122BB6911FA1D18A45C"><enum>(a)</enum><header>General rule</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, if a taxpayer is an applicable integrated oil company for its last taxable year ending in calendar year 2006, the taxpayer shall—</text> <paragraph commented="no" display-inline="no-display-inline" id="HC684488B54644AB9B38DC6118E3B0757"><enum>(1)</enum><text display-inline="yes-display-inline">increase, effective as of the close of such taxable year, the value of each historic LIFO layer of inventories of crude oil, natural gas, or any other petroleum product (within the meaning of section 4611) by the layer adjustment amount, and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BE33C47E3A7489D867D6D34C9F4193A"><enum>(2)</enum><text display-inline="yes-display-inline">decrease its cost of goods sold for such taxable year by the aggregate amount of the increases under paragraph (1).</text> </paragraph><continuation-text commented="no" continuation-text-level="subsection">If the aggregate amount of the increases under paragraph (1) exceed the taxpayer’s cost of goods sold for such taxable year, the taxpayer’s gross income for such taxable year shall be increased by the amount of such excess.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="HE6D7AE7E6628455FAF76064BBFDE6FE3"><enum>(b)</enum><header>Layer adjustment amount</header><text display-inline="yes-display-inline">For purposes of this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="H929896D689B44D3398957F5173FFC989"><enum>(1)</enum><header>In General</header><text display-inline="yes-display-inline">The term <term>layer adjustment amount</term> means, with respect to any historic LIFO layer, the product of—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H2AE21466628F4571ACFCB46334502FC9"><enum>(A)</enum><text display-inline="yes-display-inline">$18.75, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1E6C75164F85482487FCACF9BCBBED6D"><enum>(B)</enum><text display-inline="yes-display-inline">the number of barrels of crude oil (or in the case of natural gas or other petroleum products, the number of barrel-of-oil equivalents) represented by the layer.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H98DE447F8338482796DD71D73561307D"><enum>(2)</enum><header>Barrel-of-oil equivalent</header><text display-inline="yes-display-inline">The term <term>barrel-of-oil equivalent</term> has the meaning given such term by section 29(d)(5) (as in effect before its redesignation by the Energy Tax Incentives Act of 2005).</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H823F5AE077364670838B208D62FEBCB3"><enum>(c)</enum><header>Application of requirement</header> <paragraph commented="no" display-inline="no-display-inline" id="H8089491C93434A8CB5A8A8ED43853A03"><enum>(1)</enum><header>No change in method of accounting</header><text display-inline="yes-display-inline">Any adjustment required by this section shall not be treated as a change in method of accounting.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A2B2DF22A994CE58C0CCD30A228CADE"><enum>(2)</enum><header>Underpayments of estimated tax</header><text display-inline="yes-display-inline">No addition to the tax shall be made under section 6655 of the Internal Revenue Code of 1986 (relating to failure by corporation to pay estimated tax) with respect to any underpayment of an installment required to be paid with respect to the taxable year described in subsection (a) to the extent such underpayment was created or increased by this section.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA790D6C9E3284EE7B14EC2721B7F912D"><enum>(d)</enum><header>Applicable integrated oil company</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>applicable integrated oil company</term> means an integrated oil company (as defined in section 291(b)(4) of the Internal Revenue Code of 1986) which has an average daily worldwide production of crude oil of at least 500,000 barrels for the taxable year and which had gross receipts in excess of $1,000,000,000 for its last taxable year ending during calendar year 2006. For purposes of this subsection all persons treated as a single employer under subsections (a) and (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as 1 person and, in the case of a short taxable year, the rule under section 448(c)(3)(B) shall apply.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="ID461686B9C76D40CFB5BD684307169AC9" section-type="subsequent-section"><enum>112.</enum><header>Modifications of foreign tax credit rules applicable to large integrated oil companies which are dual capacity taxpayers</header> <subsection commented="no" display-inline="no-display-inline" id="ID9C4EDF23AFFF4BF5896830453DA13438"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 901 of the Internal Revenue Code of 1986 (relating to credit for taxes of foreign countries and of possessions of the United States) is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="IDF50138C11B0240AD95A6A6111D3509E2" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="ID84DA07D3B4594651B4AE3518BE91F2BD"><enum>(m)</enum><header>Special rules relating to large integrated oil companies which are dual capacity taxpayers</header> <paragraph commented="no" display-inline="no-display-inline" id="ID9827B255162D45D38EB3C8CDF554621F"><enum>(1)</enum><header>General rule</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a large integrated oil company to a foreign country or possession of the United States for any period shall not be considered a tax—</text> <subparagraph commented="no" display-inline="no-display-inline" id="IDCE3C7E227BE64219B1B1904923B58042"><enum>(A)</enum><text display-inline="yes-display-inline">if, for such period, the foreign country or possession does not impose a generally applicable income tax, or</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDC7D77DF9416549DD85EACF30B4EFBF67"><enum>(B)</enum><text display-inline="yes-display-inline">to the extent such amount exceeds the amount (determined in accordance with regulations) which—</text> <clause commented="no" display-inline="no-display-inline" id="ID75F904CFB6824DF597DC9C371210ECEC"><enum>(i)</enum><text display-inline="yes-display-inline">is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or</text> </clause><clause commented="no" display-inline="no-display-inline" id="IDCAC1599B628E4D4FBC7C347A6B311A27"><enum>(ii)</enum><text display-inline="yes-display-inline">would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.</text> </clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID86BB4AB04C6546DB8D02954A689C4E0C"><enum>(2)</enum><header>Dual capacity taxpayer</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>dual capacity taxpayer</term> means, with respect to any foreign country or possession of the United States, a person who—</text> <subparagraph commented="no" display-inline="no-display-inline" id="IDEAF2B1038ACE4C11AA1005739F089D8F"><enum>(A)</enum><text display-inline="yes-display-inline">is subject to a levy of such country or possession, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID658FB5DEAAB14253B42824ECDD498CF3"><enum>(B)</enum><text display-inline="yes-display-inline">receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDB647D940AF2944E2956A11AB7DE06364"><enum>(3)</enum><header>Generally applicable income tax</header><text display-inline="yes-display-inline">For purposes of this subsection—</text> <subparagraph commented="no" display-inline="no-display-inline" id="ID818F74AAAC284F019115D0EC6DFE384D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>generally applicable income tax</term> means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID17598F39A44F4FAE9F87086A856F3081"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—</text> <clause commented="no" display-inline="no-display-inline" id="ID58A0F65C518848259444B5546A2F00C4"><enum>(i)</enum><text display-inline="yes-display-inline">persons who are not dual capacity taxpayers, and</text> </clause><clause commented="no" display-inline="no-display-inline" id="ID4EA4A5D612D4460D9B6ACD5CA8751394"><enum>(ii)</enum><text display-inline="yes-display-inline">persons who are citizens or residents of the foreign country or possession.</text> </clause></subparagraph></paragraph><paragraph id="ID1406d3d0572b4d64a900f3fe5ce03d8d"><enum>(4)</enum><header>Large integrated oil company</header><text>For purposes of this subsection, the term <term>large integrated oil company</term> means, with respect to any taxable year, an integrated oil company (as defined in section 291(b)(4)) which—</text> <subparagraph id="ID6fe553e68b6a4d5592a94ddff53a13b7"><enum>(A)</enum><text>had gross receipts in excess of $1,000,000,000 for such taxable year, and</text> </subparagraph><subparagraph id="idC3233017AE5D42F98420E31C22863C6D"><enum>(B)</enum><text>has an average daily worldwide production of crude oil of at least 500,000 barrels for such taxable year.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="ID0B28822B86AA41AAACB7D0314D985953"><enum>(b)</enum><header>Effective Date</header> <paragraph commented="no" display-inline="no-display-inline" id="ID4550AC5485B14FE9AB92FDABBDC45E95"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID51BE7A83C05444BFB3AD41CDC7FE01DA"><enum>(2)</enum><header>Contrary treaty obligations upheld</header><text display-inline="yes-display-inline">The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.</text> </paragraph></subsection></section><enum>II</enum><header>Energy Trust Fund</header> <section id="id63BBFAD2F4B24AEC965078A3015B6C64"><enum>201.</enum><header>Dedication of resulting revenues to the Energy Trust Fund</header> <subsection id="ID799C095C592D4B28ADC8345E1630260E"><enum>(a)</enum><header>In general</header><text>Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund code) is amended by adding at the end the following new section:</text> <quoted-block id="IDECCBBEE3A5484185B82F58526AD5ECB5"> <section id="IDE07E2B452AAF4246AC5DED3AC077A5E0"><enum>9511.</enum><header>Energy Trust Fund</header> <subsection id="ID391707734B344D58B371ED0895B39225"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established in the Treasury of the United States a trust fund to be known as the <quote>Energy Trust Fund</quote>, consisting of such amounts as may be appropriated or credited to such Fund as provided in this section or section 9602(b).</text> </subsection><subsection id="IDBB7BA138018145CFB580FF7091700479"><enum>(b)</enum><header>Transfers to Trust</header><text display-inline="yes-display-inline">There are hereby appropriated to the Energy Trust Fund amounts equivalent to the revenues resulting from the amendment made by the title I of the <short-title>Oil Industry Tax Break Repeal Act of 2007</short-title>.</text> </subsection><subsection id="ID4696352F24D34FF2880179DC54929235"><enum>(c)</enum><header>Expenditures</header><text display-inline="yes-display-inline">Amounts in the Energy Trust Fund shall be available, as provided in appropriation Acts, only for the purpose of making expenditures—</text> <paragraph id="id3C64741373DD4C7EAAC0A2ADAFAAF96E"><enum>(1)</enum><text display-inline="yes-display-inline">to accelerate the use of clean domestic renewable energy resources and alternative fuels;</text> </paragraph><paragraph id="id9AAF46F87C344E60B63A612A4581EBEC"><enum>(2)</enum><text display-inline="yes-display-inline">to promote the utilization of energy-efficient products and practices and conservation; and</text> </paragraph><paragraph id="id0B8A1256A3064BA88B3FD03376548134"><enum>(3)</enum><text display-inline="yes-display-inline">to increase research, development, and deployment of clean renewable energy and efficiency technologies.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="ID6F30AB65B9B941AD9A4B201211896D01"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for such subchapter is amended by adding at the end the following new item:</text> <quoted-block id="IDB6A4F8E9229841CB9DA21B1DBB8D7130" style="USC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 9511. Energy Trust Fund.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>