I 112th CONGRESS 2d Session H. R. 6031 IN THE HOUSE OF REPRESENTATIVES June 27, 2012 Mr. Blumenauer (for himself, Mr. Levin, Mr. Rangel, Mr. Stark, Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal, Mr. Becerra, Mr. Doggett, Mr. Thompson of California, Mr. Larson of Connecticut, Mr. Kind, Mr. Pascrell, Ms. Berkley, and Mr. Crowley) 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 extend the production and investment tax credits for wind facilities and to modify the foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers.

1.

Short title

This Act may be cited as the Wind Powering American Jobs Act of 2012.

2.

Extension of production and investment tax credits for wind facilities

(a)

Extension of production credit

Paragraph (1) of section 45(d) of the Internal Revenue Code of 1986 is amended by striking January 1, 2013 and inserting January 1, 2014. (b)

Extension of investment credit

Clause (i) of section 48(a)(5)(C) of such Code is amended by striking or 2012 and inserting 2012, or 2013. (c)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2012.

3.

Modifications of foreign tax credit rules applicable to major integrated oil companies which are 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 major integrated oil companies which are dual capacity taxpayers

(1)

General rule

Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States for any period shall not be considered a tax— (A)if, for such period, the foreign country or possession does not impose a generally applicable income tax, or (B)to the extent such amount exceeds the amount (determined in accordance with regulations) which— (i)is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or (ii)would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer. Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).(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. (3)

Generally applicable income tax

For purposes of this subsection— (A)

In general

The term generally applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession. (B)

Exceptions

Such term shall not include a tax unless it has substantial application, by its terms and in practice, to— (i)persons who are not dual capacity taxpayers, and (ii)persons who are citizens or residents of the foreign 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 ending after the date of the enactment of this Act. (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.