[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1813 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1813
To amend the Internal Revenue Code of 1986 to deny tax benefits to
large oil companies and distribute the amounts raised to licensed
drivers in order to provide relief from high gas prices.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 10, 2011
Mr. Connolly of Virginia 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 deny tax benefits to
large oil companies and distribute the amounts raised to licensed
drivers in order to provide relief from high gas prices.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Gas Price Relief Act of 2011''.
SEC. 2. DISTRIBUTION OF RESULTING REVENUES TO LICENSED DRIVERS.
The Secretary of the Treasury shall distribute all of the revenues
received by the United States each fiscal year as a result of the
enactment of this Act, by payment in equal amount, to each holder of a
valid driver's license (as that term is defined in section 159 of title
23, United States Code).
SEC. 3. 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 Code 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, 2011.
SEC. 4. 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, 2011.
SEC. 5. 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, 2011.
SEC. 6. 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, 2011.
SEC. 7. 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, 2011.
SEC. 8. 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, 2011.
SEC. 9. 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.''.
SEC. 10. 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, 2011.
SEC. 11. 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, 2011.
(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.
SEC. 12. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO DUAL
CAPACITY TAXPAYERS.
(a) In General.--Section 901 of the Internal Revenue Code of 1986
is amended by redesignating subsection (n) as subsection (o) and by
inserting after subsection (m) the following new subsection:
``(n) Special Rules Relating to Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued by a dual capacity
taxpayer to a foreign country or possession of the United
States for any period with respect to combined foreign oil and
gas income (as defined in section 907(b)(1)) shall not be
considered a tax to the extent such amount exceeds the amount
(determined in accordance with regulations) which would have
been required to be paid if the taxpayer were not a dual
capacity taxpayer.
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or
possession, and
``(B) receives (or will receive) directly or
indirectly a specific economic benefit (as determined
in accordance with regulations) from such country or
possession.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxes paid or accrued in taxable years beginning after
December 31, 2011.
(2) Contrary treaty obligations upheld.--The amendments
made by this section shall not apply to the extent contrary to
any treaty obligation of the United States.
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