II 111th CONGRESS 1st Session S. 287 IN THE SENATE OF THE UNITED STATES January 21, 2009 Mr. Inhofe 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 provide for the full deduction allowable with respect to income attributable to domestic production activities, and for other purposes.

1.

Acceleration of phasein of domestic production activities deduction

(a)

In general

Subsection (a) of section 199 of the Internal Revenue Code of 1986 (relating to allowance of deduction) is amended to read as follows: (a)

Allowance of deduction

There shall be allowed as a deduction an amount equal to 9 percent of the lesser of— (1)the qualified production activities income of the taxpayer for the taxable year, or (2)taxable income (determined without regard to this section) for the taxable year. . (b)

Conforming amendment

Paragraph (2) of section 199(d) of such Code is amended by striking subsection (a)(1)(B) and inserting subsection (a)(2). (c)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2008.

2.

Restoration of full domestic production activities deduction for oil related production activities

(a)

In general

Section 401 of the Energy Improvement and Extension Act of 2008 is repealed. (b)

Effective date; administration of Code

(1)

Effective date

The repeal made by this section shall apply to taxable years beginning after December 31, 2008. (2)

Administration of code

The Internal Revenue Code of 1986 shall be applied and administered as if section 401 of the Energy Improvement and Extension Act of 2008, and the amendments made by such section, had not been enacted.