I 111th CONGRESS 2d Session H. R. 5644 IN THE HOUSE OF REPRESENTATIVES June 30, 2010 Mr. Blumenauer (for himself, Mr. Holt, Mr. Quigley, Ms. Lee of California, Mr. Hinchey, Mr. Welch, Ms. Schakowsky, Mr. Moran of Virginia, Ms. Giffords, Ms. Pingree of Maine, Mr. Carnahan, Mr. Cohen, Mr. Tonko, Mr. Polis of Colorado, and Mr. McDermott) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies for large oil companies.
1.
Short title
This Act may be cited as the End Big Oil Tax Subsidies Act of 2010.
2.
Amortization of geological and geophysical expenditures
(a)
In general
Subparagraph (A) of section 167(h)(5) of the Internal Revenue Code of 1986 is amended by striking major integrated oil company and inserting covered large oil company. (b)
Covered large oil company
Paragraph (5) of section 167(h) of such Act is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph: (B)
Covered large oil company
For purposes of this paragraph, the term covered large oil company means a taxpayer which— (i)is a major integrated oil company, or (ii)has gross receipts in excess of $50,000,000 for the taxable year. For purposes of clause (ii), all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person.. (c)
Conforming amendment
The heading for paragraph (5) of section 167(h) of such Code is amended by inserting and other large taxpayers. (d)
Effective date
The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010.
3.
Producing oil and gas from marginal wells
(a)
In general
Section 45I of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e)
Exception for taxpayer who is not small, independent oil and gas company
(1)
In general
Subsection (a) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year. (2)
Aggregation rule
For purposes of paragraph (1), all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person. . (b)
Effective date
The amendment made by subsection (a) shall apply to credits determined for taxable years beginning after December 31, 2010.
4.
Enhanced oil recovery credit
(a)
In general
Section 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (f)
Exception for taxpayer who is not small, independent oil and gas company
(1)
In general
Subsection (a) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year. (2)
Aggregation rule
For purposes of paragraph (1), all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person. . (b)
Effective date
The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010.
5.
Intangible drilling and development costs in the case of oil and gas wells
(a)
In general
Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is not a small, independent oil and gas company, determined by deeming all persons treated as a single employer under subsections (a) and (b) of section 52 as 1 person.. (b)
Effective date
The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010.
6.
Percentage depletion
(a)
In general
Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (f)
Exception for taxpayer who is not small, independent oil and gas company
(1)
In general
This section and section 611 shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year. (2)
Aggregation rule
For purposes of paragraph (1), all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person. . (b)
Conforming amendment
Section 613A(c)(1) of such Code is amended by striking subsection (d) and inserting subsections (d) and (f). (c)
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2010.
7.
Tertiary injectants
(a)
In general
Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (d)
Exception for taxpayer who is not small, independent oil and gas company
(1)
In general
Subsection (a) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year. (2)
Exception for qualified carbon dioxide disposed in secure geological storage
Paragraph (1) shall not apply in the case of any qualified tertiary injectant expense paid or incurred for any tertiary injectant is qualified carbon dioxide (as defined in section 45Q(b)) which is disposed of by the taxpayer in secure geological storage (as defined by section 45Q(d)). (3)
Aggregation rule
For purposes of paragraph (1), all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person. . (b)
Effective date
The amendment made by this section shall apply to expenses incurred after December 31, 2010.
8.
Passive activity losses and credits limited
(a)
In general
Paragraph (3) of section 469(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following: (C)
Exception for taxpayer who is not small, independent oil and gas company
(i)
In general
Subparagraph (A) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year. (ii)
Aggregation rule
For purposes of clause (i), all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person. .
9.
Income attributable to domestic production activities
(a)
In general
Section 199 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e)
Exception for taxpayer who is not small, independent oil and gas company
Subsection (a) shall not apply to the income derived from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof by any taxpayer which for the taxable year is an oil and gas company which is not a small, independent oil and gas company. . (b)
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2010.
10.
Prohibition on using last in, first-out accounting for major integrated oil companies
(a)
In general
Section 472 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (h)
Major integrated oil companies
Notwithstanding any other provision of this section, a major integrated oil company (as defined in section 167(h)) may not use the method provided in subsection (b) in inventorying of any goods. . (b)
Effective date and special rule
(1)
In general
The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2010. (2)
Change in method of accounting
In the case of any taxpayer required by the amendment made by this section to change its method of accounting for its first taxable year beginning after the date of the enactment of this Act— (A)such change shall be treated as initiated by the taxpayer, (B)such change shall be treated as made with the consent of the Secretary of the Treasury, and (C)the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 shall be taken into account ratably over a period (not greater than 8 taxable years) beginning with such first taxable year.
11.
No expensing for refineries processing liquid fuel from tar sands, shale, or coal
(a)
In general
Subsection (f) of section 179C of the Internal Revenue Code of 1986 is amended by striking or at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting , or, and by inserting after paragraph (2) the following new paragraph: (3)which is used to process liquid fuel from tar sands, shale, or coal (including lignite). . (b)
Effective date
The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2010.