I 112th CONGRESS 2d Session H. R. 5906 IN THE HOUSE OF REPRESENTATIVES June 7, 2012 Mr. Polis (for himself, Ms. McCollum, Mr. Owens, Mr. Ross of Arkansas, Mr. Capuano, Mrs. Davis of California, Mr. Sherman, and Mr. Kind) 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 the excise tax on medical devices.

1.

Repeal of medical device excise tax

(a)

In general

Chapter 32 of the Internal Revenue Code of 1986 is amended by striking subchapter E. (b)

Conforming amendments

(1)Subsection (a) of section 4221 of such Code is amended by striking the last sentence. (2)Paragraph (2) of section 6416(b) of such Code is amended by striking the last sentence. (c)

Clerical amendment

The table of subchapters for chapter 32 of such Code is amended by striking the item relating to subchapter E.

2.

Limitation on section 199 deduction attributable to oil, natural gas, or primary products thereof

(a)

Denial of deduction

Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (E)

Special rule for certain oil and gas income

In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term domestic production gross receipts shall not include gross receipts from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof. . (b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

3.

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)(5)(B)) 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 December 31, 2011— (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.