1.This Act may be cited as
the Energy Fairness for America
Act
.
2.Denial of
deduction for income attributable to domestic production of oil, natural gas,
or primary products thereof
(a)Subparagraph (B) of
section
199(c)(4) of the Internal Revenue Code of 1986 (relating to
exceptions) is amended by striking or
at the end of clause (ii),
by striking the period at the end of clause (iii) and inserting ,
or
, and by inserting after clause (iii) the following new
clause:
(iv)the production, refining, processing,
transportation, or distribution of oil, natural gas, or any primary product
thereof.
.
(b)Section 199(c)(4)(B) of such Code is amended by adding at
the end the following flush sentence:
For
purposes of clause (iv), the term primary product has the same
meaning as when used in section 927(a)(2)(C), as in effect before its
repeal..
(c)
(1)Section 199(c)(4)
of such Code is amended—
(A)in subparagraph (A)(i)(III) by striking
electricity, natural gas,
and inserting
electricity
, and
(B)in subparagraph (B)(ii) by striking
electricity, natural gas,
and inserting
electricity
.
(2)Section 199(d) of
such Code is amended by striking paragraph (9) and by redesignating paragraph
(10) as paragraph (9).
(d)The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.
3.Termination of
credit for producing oil and gas from marginal wells
(a)Section 45I of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
(e)This section shall not apply to any taxable
year beginning after the date of the enactment of this
subsection.
.
(b)The amendment made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.
4.Repeal of
exception from passive activity rules for working interests in oil or gas
property
(a)Section 469(c) of the Internal Revenue Code of 1986 is
amended by striking paragraph (3).
(b)Paragraph (4) of section 469(c) of such Code is
amended—
(1)by striking
Paragraphs (2) and (3)
and inserting Paragraph
(2)
, and
(2)by striking
paragraphs (2) and
(3)
in the heading and inserting
paragraph
(2)
.
(c)The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.
5.7-year
amortization of geological and geophysical expenditures for all oil and gas
exploration and development
(a)Section 167(h) of the Internal Revenue Code of 1986 is
amended—
(1)by striking
24-month period
each place it appears in paragraphs (1) and (4)
and inserting 7-year period
, and
(2)by striking
paragraph (5).
(b)The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.
6.Termination of deduction for intangible
drilling and development costs
(a)Section 263(c) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new sentence: This
subsection shall not apply to any taxable year beginning after the date of the
enactment of this sentence.
.
(b)Paragraphs (2) and (3) of section 291(b) of
such Code are each amended by striking section 263(c), 616(a),
and inserting section 616(a)
.
(c)The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.
7.Termination of percentage depletion
allowance for oil and gas wells
(a)Section 613A of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subsection:
(f)For purposes of any taxable year beginning
after the date of the enactment of this subsection, the allowance for
percentage depletion shall be
zero.
.
(b)The amendment made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.