II 112th CONGRESS 1st Session S. 26 IN THE SENATE OF THE UNITED STATES January 25 (legislative day, January 5), 2011 Mrs. Shaheen 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 repeal the percentage depletion allowance for certain hardrock mines, and to use the resulting revenues from such repeal for deficit reduction.

1.

Short title

This Act may be cited as the Elimination of Double Subsidies for the Hardrock Mining Industry Act of 2011.

2.

Repeal of percentage depletion allowance for certain hardrock mines

(a)

In general

Section 613(a) of the Internal Revenue Code of 1986 is amended by inserting (other than hardrock mines located on lands subject to the general mining laws or on land patented under the general mining laws) after In the case of the mines. (b)

General mining laws defined

Section 613 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (f)

General mining laws

For purposes of subsection (a), the term general mining laws means those Acts which generally comprise chapters 2, 12A, and 16, and sections 161 and 162 of title 30 of the United States Code. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011. (d)

Use of resulting revenues for deficit reduction

The revenues resulting from the amendment made by subsection (a) shall not be appropriated or otherwise made available for any fiscal year, resulting in a reduction of the Federal budget deficit for such fiscal year. If in any fiscal year there is no Federal budget deficit (determined without regard to such revenues), such revenues shall be used for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.