[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1007 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1007

  To amend the Internal Revenue Code of 1986 to eliminate the taxable 
 income limit on percentage depletion for oil and natural gas produced 
                       from marginal properties.


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                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2011

  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 eliminate the taxable 
 income limit on percentage depletion for oil and natural gas produced 
                       from marginal properties.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ELIMINATION OF TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION 
              FOR OIL AND NATURAL GAS PRODUCED FROM MARGINAL 
              PROPERTIES.

    (a) In General.--Subparagraph (H) of section 613A(c)(6) of the 
Internal Revenue Code of 1986 (relating to oil and natural gas produced 
from marginal properties) is amended to read as follows:
                    ``(H) Nonapplication of taxable income limit with 
                respect to marginal production.--The second sentence of 
                subsection (a) of section 613 shall not apply to so 
                much of the allowance for depletion as is determined 
                under subparagraph (A).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2010.
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