I 112th CONGRESS 1st Session H. R. 851 IN THE HOUSE OF REPRESENTATIVES March 1, 2011 Mr. Braley of Iowa 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 certain renewable fuel tax incentives and to repeal fossil fuel subsidies for large oil companies.
1.
Short title
(a)
Short title
This Act may be cited as the Clean Energy Jobs Act of 2011. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title. Title I—Renewable Fuels Sec. 101. Extension of biodiesel and renewable diesel incentives. Sec. 102. Extension of income tax credit for alcohol used as fuel. Sec. 103. Extension of excise tax credit for alcohol used as fuel. Sec. 104. Extension of additional duties on ethanol. Title II—Fossil Fuels Sec. 201. Amortization of geological and geophysical expenditures. Sec. 202. Producing oil and gas from marginal wells. Sec. 203. Enhanced oil recovery credit. Sec. 204. Intangible drilling and development costs in the case of oil and gas wells. Sec. 205. Percentage depletion. Sec. 206. Tertiary injectants. Sec. 207. Passive activity losses and credits limited. Sec. 208. Income attributable to domestic production activities. Title III—Increased Revenues to Reduce Federal Budget Deficit Sec. 301. Increased revenues to reduce Federal budget deficit.
<enum>I</enum><header>Renewable Fuels</header> <section id="HAE8100125115460BBC5F7FBBC0201DE6"><enum>101.</enum><header>Extension of biodiesel and renewable diesel incentives</header> <subsection id="H465B2BE599DB4F3C88311780F28740E8"><enum>(a)</enum><header>Credits for Biodiesel and Renewable Diesel Used as Fuel</header><text>Subsection (g) of section 40A of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2011</quote> and inserting <quote>December 31, 2016</quote>.</text> </subsection><subsection id="H3C0B5AC1CB75470DAD664A1D5A3FE452"><enum>(b)</enum><header>Excise Tax Credits and Outlay Payments for Biodiesel and Renewable Diesel Fuel Mixtures</header> <paragraph id="H808E29B5BB7A47FB85B23B1DEE09BAA5"><enum>(1)</enum><text>Paragraph (6) of section 6426(c) of such Code is amended by striking <quote>December 31, 2011</quote> and inserting <quote>December 31, 2016</quote>.</text> </paragraph><paragraph id="H5867863F0CF6439C807B3EFB6672E0B2"><enum>(2)</enum><text>Subparagraph (B) of section 6427(e)(6) is amended by striking <quote>December 31, 2011</quote> and inserting <quote>December 31, 2016</quote>.</text> </paragraph></subsection><subsection id="H373DD9205C824AF39DC972EE91C4F49B"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to fuel sold or used after December 31, 2011.</text> </subsection></section><section id="H49D1AFCEFD4C43F293D9B90FCA1898E4"><enum>102.</enum><header>Extension of income tax credit for alcohol used as fuel</header> <subsection id="HC6FA6FA292A640C282EE005AA68EB408"><enum>(a)</enum><header>In General</header><text>Paragraph (1) of section 40(e) of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="H927B5D7CDA01478DA899F4E9E2EBBA68"><enum>(1)</enum><text>by striking <quote>December 31, 2011</quote> in subparagraph (A) and inserting <quote>December 31, 2016</quote>, and</text> </paragraph><paragraph id="H0BDA7CB2EE37457B92B6CA2FE7ADFD31"><enum>(2)</enum><text>by striking <quote>January 1, 2012</quote> in subparagraph (B) and inserting <quote>January 1, 2017</quote>.</text> </paragraph></subsection><subsection id="H3A7D837AF1BB4C3A9DE4DDD4D9CECA9B"><enum>(b)</enum><header>Cellulosic Biofuel</header><text>Subparagraph (H) of section 40(b)(6) of such Code is amended by striking <quote>January 1, 2013</quote> and inserting <quote>January 1, 2017</quote>.</text> </subsection><subsection id="H17C9B1F940CA4738A08F9A65B81615D4"><enum>(c)</enum><header>Reduced Amount for Ethanol Blenders</header><text>Paragraphs (1) and (2) of section 40(h) of such Code are both amended by striking <quote>2011</quote> and inserting <quote>2016</quote>.</text> </subsection><subsection id="H061073DCBE3F47B68D9CC5B0C840B5DA"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section><section id="HC97B8F2DA43B4E55B78D50B529FF5081"><enum>103.</enum><header>Extension of excise tax credit for alcohol used as fuel</header> <subsection id="HF7394AB03CBC4301BE084F02BE16F56D"><enum>(a)</enum><header>In General</header><text>Paragraph (6) of section 6426(b) of the Internal Revenue Code of 1986 is amended by striking <quote>December 31, 2011</quote> and inserting <quote>December 31, 2016</quote>.</text> </subsection><subsection id="HD24453DB5B994AEAAF49F0F2F923CEAD"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section><section id="H693A81E565894C91B49614AB63166478"><enum>104.</enum><header>Extension of additional duties on ethanol</header><text display-inline="no-display-inline">Headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff Schedule of the United States are each amended in the effective period column by striking <quote>1/1/2012</quote> and inserting <quote>1/1/2017</quote>.</text> </section><enum>II</enum><header>Fossil Fuels</header> <section id="H6E8D93986CDC447E9D1FEBFDC73E5D62"><enum>201.</enum><header>Amortization of geological and geophysical expenditures</header> <subsection id="H82FB3D0E0CFD47F9900153AC46C6318C"><enum>(a)</enum><header>In General</header><text>Subparagraph (A) of section 167(h)(5) of the Internal Revenue Code of 1986 is amended by striking <quote>major integrated oil company</quote> and inserting <quote>covered large oil company</quote>.</text> </subsection><subsection id="H7CBCFF9B3BB94926924A934A1D8F5C4B"><enum>(b)</enum><header>Covered Large Oil Company</header><text>Paragraph (5) of section 167(h) of such Act is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:</text> <quoted-block id="H39F91BC324934992B0FE226AF1C5C9A8" style="OLC"> <subparagraph id="H6529795E92824045B68D11FE91CA765B"><enum>(B)</enum><header>Covered large oil company</header><text>For purposes of this paragraph, the term <term>covered large oil company</term> means a taxpayer which—</text> <clause id="HBE473CA9F689480B9EA9A93048EE4FB9"><enum>(i)</enum><text>is a major integrated oil company, or</text> </clause><clause id="H10FF3BF72AD84D1D91E056B316D18C0D"><enum>(ii)</enum><text>has gross receipts in excess of $50,000,000 for the taxable year.</text> </clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HCD5ED608D589432CB0B4B60B32C9536B"><enum>(c)</enum><header>Conforming Amendment</header><text>The heading for paragraph (5) of section 167(h) of such Code is amended by inserting <quote><header-in-text level="paragraph" style="OLC">and other large taxpayers</header-in-text></quote>.</text> </subsection><subsection id="HC0672C7D01F044409DD5DA36BC54D19F"><enum>(d)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.</text> </subsection></section><section id="H6A6FED48781646B3BF05F15E51DCAE3D"><enum>202.</enum><header>Producing oil and gas from marginal wells</header> <subsection id="HE45F06667799400B8297801AC7C09950"><enum>(a)</enum><header>In General</header><text>Section 45I of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block id="H5B48445C1ACC4EB8816FBB165E52980D" style="OLC"> <subsection id="H5AAFD4BDB3DD4849BCB26DCD2128403F"><enum>(e)</enum><header>Exception for Taxpayer Who Is Not Small, Independent Oil and Gas Company</header> <paragraph id="HD1B10EBA683D4286A95D699643975182"><enum>(1)</enum><header>In general</header><text>Subsection (a) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year.</text> </paragraph><paragraph id="HDBC75F77E6344821BE804F66B26A2731"><enum>(2)</enum><header>Aggregation rule</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE5D88AF5DC9147AAA962800CFEDAF91F"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by subsection (a) shall apply to credits determined for taxable years beginning after December 31, 2011.</text> </subsection></section><section id="H807585D7178D4C439065418FF74A4554"><enum>203.</enum><header>Enhanced oil recovery credit</header> <subsection id="H334E5D8BE3D5443AB74F8050E01D27C1"><enum>(a)</enum><header>In General</header><text>Section 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block id="H9B3F446DFACF440A8C94B5F135D746DA" style="OLC"> <subsection id="H94D6A6C7D453486AB6362B85CD0CF620"><enum>(f)</enum><header>Exception for Taxpayer Who Is Not Small, Independent Oil and Gas Company</header> <paragraph id="H144DE99EFC9A470486F7C430E010D76E"><enum>(1)</enum><header>In general</header><text>Subsection (a) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year.</text> </paragraph><paragraph id="HC88C26B4BF9345E7A6E0C35478E97A7C"><enum>(2)</enum><header>Aggregation rule</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H0FBA4850BFA7412FBDD4A60530EDC04B"><enum>(b)</enum><header>Effective Date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.</text> </subsection></section><section id="H21B2E000E2B74020A47995202B223DEE"><enum>204.</enum><header>Intangible drilling and development costs in the case of oil and gas wells</header> <subsection id="H2A327E8655BB46A1AABABD52BC488DD3"><enum>(a)</enum><header>In General</header><text>Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: <quote>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.</quote>.</text> </subsection><subsection id="HFA6D534A6C2547EB88B89839B4E2BF01"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.</text> </subsection></section><section id="HC0519CC7F5684610A3D4BB89C22485F0"><enum>205.</enum><header>Percentage depletion</header> <subsection id="H604541C0A66B451F8BA8490BDD740508"><enum>(a)</enum><header>In General</header><text>Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block id="HED76F163822A444DA13810C936EDF1FA" style="OLC"> <subsection id="H710661DCB437497083295A70A349510A"><enum>(f)</enum><header>Exception for Taxpayer Who Is Not Small, Independent Oil and Gas Company</header> <paragraph id="HEE0E0B48EA20485486C1ED6A582C214D"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph><paragraph id="H5CE2DED6F71742B09A17B42E787DBC07"><enum>(2)</enum><header>Aggregation rule</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HD89BD721DCF24C23AE156E6852145A09"><enum>(b)</enum><header>Conforming Amendment</header><text>Section 613A(c)(1) of such Code is amended by striking <quote>subsection (d)</quote> and inserting <quote>subsections (d) and (f)</quote>.</text> </subsection><subsection id="H6528873E797A4B4385BC1E81407AEA8C"><enum>(c)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2011.</text> </subsection></section><section id="HB2BB5AB0E82A4017A15893547E424FBD"><enum>206.</enum><header>Tertiary injectants</header> <subsection id="HCF6E2DF24256413EB6AA9AB5EE89A173"><enum>(a)</enum><header>In General</header><text>Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block id="HD041F1F111814BCFBE08E18B8974D970" style="OLC"> <subsection id="H4373DB0971F448DFA915322476CE255E"><enum>(d)</enum><header>Exception for Taxpayer Who Is Not Small, Independent Oil and Gas Company</header> <paragraph id="H32F48924DE054B739E03D7F9611CCEB8"><enum>(1)</enum><header>In general</header><text>Subsection (a) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year.</text> </paragraph><paragraph id="H9401E30F9F7146EB8C237D7959C18F5A"><enum>(2)</enum><header>Exception for qualified carbon dioxide disposed in secure geological storage</header><text>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)).</text> </paragraph><paragraph id="H48020AB6D3D04A8FA9511BF1772FACFC"><enum>(3)</enum><header>Aggregation rule</header><text>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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H44A80528CF4342A69941BA34642F9197"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to expenses incurred after December 31, 2011.</text> </subsection></section><section id="HD144042FD94649118934748794746007"><enum>207.</enum><header>Passive activity losses and credits limited</header><text display-inline="no-display-inline">Paragraph (3) of section 469(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text> <quoted-block id="HC29B611803A14E1AB0269CA5CC56AC8D" style="OLC"> <subparagraph id="HF70D567A46CF4B02B619A26117B89CBC"><enum>(C)</enum><header>Exception for taxpayer who is not small, independent oil and gas company</header> <clause id="H51BCF7F919614B1887C7C8804DB6C1F2"><enum>(i)</enum><header>In general</header><text>Subparagraph (A) shall not apply to any taxpayer which is not a small, independent oil and gas company for the taxable year.</text> </clause><clause id="HE62A25204EA64302ACE85E73B7A37186"><enum>(ii)</enum><header>Aggregation rule</header><text>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.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H69C3B0BEC7774FF7B2F9891428E696FB"><enum>208.</enum><header>Income attributable to domestic production activities</header> <subsection id="H3827270559DB4C1DA1A55496D1519108"><enum>(a)</enum><header>In General</header><text>Section 199 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block id="HBB28AE0A59C84F09A22AE5E364170DA0" style="OLC"> <subsection id="H3D8302CD30DF481180ACE0D29D6FCF29"><enum>(e)</enum><header>Exception for Taxpayer Who Is Not Small, Independent Oil and Gas Company</header><text>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.</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HEEB3A1C745764737B5A8FAC8D81EE18D"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2011.</text> </subsection></section><enum>III</enum><header>Increased Revenues to Reduce Federal Budget Deficit</header> <section id="H0CECF0820D0F49728773B907F83120E1"><enum>301.</enum><header>Increased revenues to reduce Federal budget deficit</header><text display-inline="no-display-inline">Any increase in revenues by reason of the amendments made by this Act shall be applied to reduce the Federal budget deficit, or, for any fiscal year for which there is no Federal budget deficit, to reduce the Federal debt.</text> </section>