[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4040 Introduced in House (IH)]

<DOC>






114th CONGRESS
  1st Session
                                H. R. 4040

To amend the Internal Revenue Code of 1986 to modify and extend certain 
                   tax incentives relating to energy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 17, 2015

Mr. Blumenauer (for himself, Ms. Edwards, Mr. McDermott, Mr. Pascrell, 
Mr. Honda, Mr. Van Hollen, Ms. McCollum, Mr. Lowenthal, Mr. Ted Lieu of 
California, Mr. Higgins, Mr. Neal, Ms. Linda T. Sanchez of California, 
   Ms. Lee, Mr. Quigley, Mr. Cartwright, Ms. Norton, Mr. Rangel, Mr. 
  Huffman, and Mr. Grijalva) 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 modify and extend certain 
                   tax incentives relating to energy.

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

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Bridge to a Clean 
Energy Future Act of 2015''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.
      TITLE I--EXTENSION AND MODIFICATION OF ENERGY TAX PROVISIONS

Sec. 101. Extension and modification of credit for nonbusiness energy 
                            property.
Sec. 102. Extension of credit for new qualified fuel cell motor 
                            vehicles.
Sec. 103. Extension of credit for alternative fuel vehicle refueling 
                            property.
Sec. 104. Extension of second generation biofuel producer credit.
Sec. 105. Extension and reform of biodiesel tax incentives.
Sec. 106. Extension of credits with respect to facilities producing 
                            energy from certain renewable resources.
Sec. 107. Extension of credit for energy-efficient new homes.
Sec. 108. Extension of special allowance for second generation biofuel 
                            plant property.
Sec. 109. Extension and modification of energy efficient commercial 
                            buildings deduction.
Sec. 110. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 111. Extension of excise tax credits relating to alternative 
                            fuels.
                    TITLE II--ADDITIONAL PROVISIONS

Sec. 201. Extension of energy credit for certain property under 
                            construction.
Sec. 202. Modifications in credit for combined heat and power system 
                            property.
Sec. 203. Energy credit for waste heat to power property.
Sec. 204. Investment tax credit for community wind projects having 
                            generation capacity of not more than 20 
                            megawatts.
Sec. 205. Extension of publicly traded partnership ownership structure 
                            to energy power generation projects, 
                            transportation fuels, and related energy 
                            activities.
Sec. 206. Additional advanced energy manufacturing credit allocations.
              TITLE III--ENDING OIL AND GAS TAX SUBSIDIES

Sec. 301. Amortization of geological and geophysical expenditures.
Sec. 302. Producing oil and gas from marginal wells.
Sec. 303. Enhanced oil recovery credit.
Sec. 304. Intangible drilling and development costs in the case of oil 
                            and gas wells.
Sec. 305. Repeal of percentage depletion for oil and gas wells.
Sec. 306. Repeal of deduction for tertiary injectants.
Sec. 307. Repeal of exception to passive loss limitations for working 
                            interests in oil and gas properties.
Sec. 308. Deduction for income attributable to domestic production 
                            activities not allowed with respect to oil 
                            and gas activities.
Sec. 309. Prohibition on using last-in, first-out accounting for oil 
                            and gas companies.
Sec. 310. Modifications of foreign tax credit rules applicable to dual 
                            capacity taxpayers.

      TITLE I--EXTENSION AND MODIFICATION OF ENERGY TAX PROVISIONS

SEC. 101. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Updated Energy Star Requirements for Windows, Doors, Skylights, 
and Roofing.--
            (1) In general.--Paragraph (1) of section 25C(c) is amended 
        by striking ``which meets'' and all that follows through 
        ``requirements)''.
            (2) Energy efficient building envelope component.--
        Subsection (c) of section 25C is amended by redesignating 
        paragraphs (2) and (3) as paragraphs (3) and (4), respectively, 
        and by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Energy efficient building envelope component.--The 
        term `energy efficient building envelope component' means a 
        building envelope component which meets--
                    ``(A) applicable Energy Star program requirements, 
                in the case of a roof or roof products,
                    ``(B) version 6.0 Energy Star program requirements, 
                in the case of an exterior window, a skylight, or an 
                exterior door, and
                    ``(C) the prescriptive criteria for such component 
                established by the 2009 International Energy 
                Conservation Code, as such Code (including supplements) 
                is in effect on the date of the enactment of the 
                American Recovery and Reinvestment Tax Act of 2009, in 
                the case of any other component.''.
            (3) Conforming amendment.--Subparagraph (D) of section 
        25C(c)(3), as so redesignated, is amended to read as follows:
                    ``(D) any roof or roof products which are installed 
                on a dwelling unit and are specifically and primarily 
                designed to reduce the heat gain of such dwelling 
                unit.''.
    (c) Separate Standards for Tankless and Storage Water Heaters.--
            (1) In general.--Subparagraph (D) of section 25C(d)(3) is 
        amended by striking ``which has either'' and all that follows 
        and inserting ``which has either--
                            ``(i) in the case of a storage water 
                        heater, an energy factor of at least 0.80 or a 
                        thermal efficiency of at least 90 percent, and
                            ``(ii) in the case of any other water 
                        heater, an energy factor of at least 0.90 or a 
                        thermal efficiency of at least 90 percent, 
                        and''.
            (2) Storage water heaters.--Paragraph (3) of section 25C(d) 
        is amended by adding at the end the following flush sentence:
        ``For purposes of subparagraph (D)(i), the term `storage water 
        heater' means a water heater that has a water storage capacity 
        of more than 20 gallons but not more than 55 gallons.''.
    (d) Modification of Testing Standards for Biomass Stoves.--
Subparagraph (E) of section 25C(d)(3) is amended by inserting before 
the period the following: ``, when tested using the higher heating 
value of the fuel and in accordance with the Canadian Standards 
Administration B415.1 test protocol''.
    (e) Separate Standard for Oil Hot Water Boilers.--Paragraph (4) of 
section 25C(d) is amended by striking ``95'' and inserting ``95 (90 in 
the case of an oil hot water boiler)''.
    (f) Installation Costs for Qualified Energy Efficiency 
Improvements.--Paragraph (1) of subsection (c) of section 25C is 
amended by adding at the end the following flush sentence:
        ``Such term includes expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the component.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2014.

SEC. 102. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL MOTOR 
              VEHICLES.

    (a) In General.--Paragraph (1) of section 30B(k) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property purchased after December 31, 2014.

SEC. 103. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) In General.--Subsection (g) of section 30C is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2014.

SEC. 104. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Clause (i) of section 40(b)(6)(J) is amended by 
striking ``January 1, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this subsection shall 
apply to qualified second generation biofuel production after December 
31, 2014.

SEC. 105. EXTENSION AND REFORM OF BIODIESEL TAX INCENTIVES.

    (a) Income Tax Credit.--
            (1) Extension.--
                    (A) Credits for biodiesel and renewable diesel used 
                as fuel.--Subsection (g) of section 40A is amended by 
                striking ``December 31, 2014'' and inserting ``December 
                31, 2016''.
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2014.
            (2) Reform of income tax credit.--
                    (A) In general.--So much of section 40A as precedes 
                subsection (c) is amended to read as follows:

``SEC. 40A. BIODIESEL FUELS CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible taxpayer, the biodiesel fuels credit determined under this 
section for the taxable year is $1.00 for each gallon of biodiesel 
produced by the taxpayer which during the taxable year--
            ``(1) is sold by the producer of such biodiesel to another 
        person--
                    ``(A) for use by such other person's trade or 
                business as a fuel or in the production of a biodiesel 
                mixture (other than casual off-farm production), or
                    ``(B) who sells such biodiesel at retail to another 
                person and places such biodiesel in the fuel tank of 
                such other person, or
            ``(2) is used by such producer for any purpose described in 
        paragraph (1).
    ``(b) Increased Credit for Small Producers.--
            ``(1) In general.--In the case of any eligible small 
        biodiesel producer, subsection (a) shall be applied by 
        increasing the dollar amount contained therein by 10 cents.
            ``(2) Limitation.--Paragraph (1) shall only apply with 
        respect to the first 15,000,000 gallons of biodiesel produced 
        by any eligible small biodiesel producer during any taxable 
        year.''.
                    (B) Definitions and special rules.--Section 40A(d) 
                is amended by striking all that follows paragraph (1) 
                and inserting the following:
            ``(2) Eligible taxpayer.--
                    ``(A) In general.--The term `eligible taxpayer' 
                means, with respect to any gallon of biodiesel, the 
                producer of such gallon if such producer has paid the 
                tax imposed by section 4081 on such biodiesel.
                    ``(B) Special rule for eligible discretionary 
                blenders.--For purposes of this section (other than 
                subsection (b)), an eligible discretionary blender 
                shall be treated as the producer of any gallon of 
                biodiesel which is used to make a qualified biodiesel 
                mixture if--
                            ``(i) the producer of such biodiesel 
                        (determined without regard to this 
                        subparagraph)--
                                    ``(I) did not pay the tax imposed 
                                under section 4081 with respect to such 
                                gallon, and
                                    ``(II) assigns the credit allowed 
                                under this section to the eligible 
                                discretionary blender in such form and 
                                manner as provided by the Secretary, 
                                and
                            ``(ii) such eligible discretionary blender 
                        pays the tax imposed under section 4081 with 
                        respect to such gallon.
                For purposes of the preceding sentence, an eligible 
                discretionary blender shall be treated as producing a 
                gallon of biodiesel in the taxable year in which the 
                sale or use of the qualified biodiesel mixture occurs.
                    ``(C) Eligible discretionary blender.--For purposes 
                of subparagraph (B), the term `eligible discretionary 
                blender' means any person who--
                            ``(i) is registered under section 4101 as a 
                        blender of qualified biodiesel mixtures, and
                            ``(ii) has used 10,000,000 or more gallons 
                        of biodiesel in the production of qualified 
                        biodiesel mixtures in the preceding taxable 
                        year.
            ``(3) Biodiesel mixture; qualified biodiesel mixture.--
                    ``(A) Biodiesel mixture.--The term `biodiesel 
                mixture' means a mixture which consists of biodiesel 
                and diesel fuel (as defined in section 4083(a)(3)), 
                determined without regard to any use of kerosene.
                    ``(B) Qualified biodiesel mixture.--
                            ``(i) In general.--The term `qualified 
                        biodiesel mixture' means a biodiesel mixture 
                        which is produced by an eligible discretionary 
                        blender and--
                                    ``(I) sold by such eligible 
                                discretionary blender to any person for 
                                use as a fuel, or
                                    ``(II) used by such eligible 
                                discretionary blender as a fuel.
                            ``(ii) Sale or use must be in trade or 
                        business, etc.--A biodiesel mixture shall not 
                        be treated as a qualified biodiesel mixture 
                        unless the sale or use described in clause (i) 
                        is in a trade or business of the eligible 
                        discretionary blender.
            ``(4) Biodiesel not used for a qualified purpose.--If--
                    ``(A) any credit was determined with respect to any 
                biodiesel under this section, and
                    ``(B) any person uses such biodiesel for a purpose 
                not described in subsection (a),
        then there is hereby imposed on such person a tax equal to the 
        product of the rate applicable under subsection (a) and the 
        number of gallons of such biodiesel.
            ``(5) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(6) Limitation to biodiesel with connection to the united 
        states.--No credit shall be determined under subsection (a) 
        with respect to biodiesel unless such biodiesel is produced in 
        the United States. For purposes of this paragraph, the term 
        `United States' includes any possession of the United 
        States.''.
                    (C) Rules for small biodiesel producers.--
                            (i) In general.--Section 40A(e) is 
                        amended--
                                    (I) by striking ``agri-biodiesel'' 
                                each place it appears in paragraphs (1) 
                                and (5)(A) and inserting ``biodiesel'',
                                    (II) by striking ``subsection 
                                (b)(4)(C)'' each place it appears in 
                                paragraphs (2) and (3) and inserting 
                                ``subsection (b)(2)'', and
                                    (III) by striking ``subsection 
                                (a)(3)'' each place it appears in 
                                paragraphs (5)(A), (6)(A)(i), and 
                                (6)(B)(i) and inserting ``subsection 
                                (b)''.
                            (ii) The heading for subsection (e) of 
                        section 40A is amended by striking ``Agri-
                        biodiesel'' and inserting ``Biodiesel''.
                            (iii) The headings for paragraphs (1) and 
                        (6) of section 40A(e) are each amended by 
                        striking ``agri-biodiesel'' and inserting 
                        ``biodiesel''.
                    (D) Conforming amendments related to renewable 
                diesel.--Section 40A(f) is amended--
                            (i) by striking ``Subsection (b)(4)'' and 
                        inserting ``Subsection (b)'', and
                            (ii) by striking paragraph (4) and 
                        inserting the following:
            ``(4) Certain aviation fuel.--Except as provided in the 
        last 3 sentences of paragraph (3), the term `renewable diesel' 
        shall include fuel derived from biomass which meets the 
        requirements of a Department of Defense specification for 
        military jet fuel or an American Society for Testing and 
        Materials specification for aviation turbine fuel.''.
                    (E) Registration of eligible discretionary 
                blenders.--Section 4101(a)(1) is amended--
                            (i) by striking ``and'' before ``every 
                        person producing second generation biofuel'', 
                        and
                            (ii) by inserting ``, and every person 
                        producing qualified biodiesel mixtures (as 
                        defined in section 40A(d)(3)) 10,000,000 or 
                        more gallons per year'' after ``section 
                        40(b)(6)(E))''.
                    (F) Clerical amendment.--The table of sections for 
                subpart D of part IV of subchapter A of chapter 1 is 
                amended by striking the item relating to section 40A 
                and inserting the following new item:

``Sec. 40A. Biodiesel fuels credit.''.
                    (G) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2015.
    (b) Excise Tax Incentives.--
            (1) Extension.--
                    (A) In general.--Paragraph (6) of section 6426(c) 
                is amended by striking ``December 31, 2014'' and 
                inserting ``December 31, 2016''.
                    (B) Payments.--Subparagraph (B) of section 
                6427(e)(6) is amended by striking ``December 31, 2014'' 
                and inserting ``December 31, 2016''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2014.
                    (D) Special rule for certain periods during 2015.--
                Notwithstanding any other provision of law, in the case 
                of any biodiesel mixture credit properly determined 
                under section 6426(c) of the Internal Revenue Code of 
                1986 for periods after December 31, 2014, and on or 
                before the last day of the first calendar quarter 
                ending after the date of the enactment of this Act, 
                such credit shall be allowed, and any refund or payment 
                attributable to such credit (including any payment 
                under section 6427(e) of such Code) shall be made, only 
                in such manner as the Secretary of the Treasury (or the 
                Secretary's delegate) shall provide. Such Secretary 
                shall issue guidance within 30 days after the date of 
                the enactment of this Act providing for a one-time 
                submission of claims covering periods described in the 
                preceding sentence. Such guidance shall provide for a 
                180-day period for the submission of such claims (in 
                such manner as prescribed by such Secretary) to begin 
                not later than 30 days after such guidance is issued. 
                Such claims shall be paid by such Secretary not later 
                than 60 days after receipt. If such Secretary has not 
                paid pursuant to a claim filed under this subsection 
                within 60 days after the date of the filing of such 
                claim, the claim shall be paid with interest from such 
                date determined by using the overpayment rate and 
                method under section 6621 of such Code.
            (2) Reform of excise tax credit.--
                    (A) In general.--Subsection (c) of section 6426 is 
                amended--
                            (i) by striking all that precedes paragraph 
                        (6) and inserting the following:
    ``(c) Biodiesel Production Credit.--
            ``(1) In general.--For purposes of this section, in the 
        case of an eligible taxpayer, the biodiesel production credit 
        is $1.00 for each gallon of biodiesel produced by the taxpayer 
        and which--
                    ``(A) is sold by such producer to another person--
                            ``(i) for use by such other person's trade 
                        or business as a fuel or in the production of a 
                        biodiesel mixture (other than casual off-farm 
                        production), or
                            ``(ii) who sells such biodiesel at retail 
                        to another person and places such biodiesel in 
                        the fuel tank of such other person, or
                    ``(B) is used by such producer for any purpose 
                described in subparagraph (A).
            ``(2) Special rule for eligible discretionary blenders.--
        For purposes of this subsection and section 6427(e)(3), an 
        eligible discretionary blender shall be treated as the producer 
        of any gallon of biodiesel which is used to make a qualified 
        biodiesel mixture if--
                    ``(A) the producer of such biodiesel (determined 
                without regard to this subparagraph)--
                            ``(i) did not pay the tax imposed under 
                        section 4081 with respect to such gallon, and
                            ``(ii) assigns the credit allowed under 
                        this section to the eligible discretionary 
                        blender in such form and manner as provided by 
                        the Secretary, and
                    ``(B) such eligible discretionary blender pays the 
                tax imposed under section 4081 with respect to such 
                gallon.
        For purposes of the preceding sentence, an eligible 
        discretionary blender shall not be treated as producing a 
        gallon of biodiesel before the date on which the sale or use of 
        the qualified biodiesel mixture occurs.
            ``(3) Definitions.--Any term used in this subsection which 
        is also used in section 40A shall have the meaning given such 
        term by section 40A.'', and
                            (ii) by redesignating paragraph (6), as 
                        amended by paragraph (1)(A), as paragraph (4).
                    (B) Producer registration requirement.--Subsection 
                (a) of section 6426 is amended by striking 
                ``subsections (d) and (e)'' in the flush sentence at 
                the end and inserting ``subsections (c), (d), and 
                (e)''.
                    (C) Recapture.--
                            (i) In general.--Subsection (f) of section 
                        6426 is amended--
                                    (I) by striking ``or biodiesel'' 
                                each place it appears in subparagraphs 
                                (A) and (B)(i) of paragraph (1),
                                    (II) by striking ``or biodiesel 
                                mixture'' in paragraph (1)(A), and
                                    (III) by redesignating paragraph 
                                (2) as paragraph (3) and by inserting 
                                after paragraph (1) the following new 
                                paragraph:
            ``(2) Biodiesel.--If any credit was determined under this 
        section or paid pursuant to section 6427(e) with respect to the 
        production of any biodiesel and any person uses such biodiesel 
        for a purpose not described in subsection (c)(1), then there is 
        hereby imposed on such person a tax equal to $1 for each gallon 
        of such biodiesel.''.
                            (ii) Conforming amendments.--
                                    (I) Paragraph (3) of section 
                                6426(f), as redesignated by clause 
                                (i)(III), is amended by inserting ``or 
                                (2)'' after ``paragraph (1)''.
                                    (II) The heading for paragraph (1) 
                                of section 6426(f) is amended by 
                                striking ``Imposition of tax'' and 
                                inserting ``In general''.
                    (D) Limitation.--Section 6426(i) is amended--
                            (i) in paragraph (2)--
                                    (I) by striking ``biodiesel or'', 
                                and
                                    (II) by striking ``Biodiesel and'' 
                                in the heading, and
                            (ii) by inserting after paragraph (2) the 
                        following new paragraph:
            ``(3) Biodiesel.--No credit shall be determined under this 
        section with respect to biodiesel unless such biodiesel is 
        produced in the United States.''.
                    (E) Clerical amendments.--
                            (i) The heading of section 6426 is amended 
                        by striking ``alcohol fuel, biodiesel, and 
                        alternative fuel mixtures'' and inserting 
                        ``alcohol fuel mixtures, biodiesel production, 
                        and alternative fuel mixtures''.
                            (ii) The item relating to section 6426 in 
                        the table of sections for subchapter B of 
                        chapter 65 is amended by striking ``alcohol 
                        fuel, biodiesel, and alternative fuel 
                        mixtures'' and inserting ``alcohol fuel 
                        mixtures, biodiesel production, and alternative 
                        fuel mixtures''.
                    (F) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2015.
            (3) Reform of excise payments of credit.--
                    (A) In general.--Subsection (e) of section 6427, as 
                amended by paragraph (1)(B), is amended--
                            (i) by striking ``or the biodiesel mixture 
                        credit'' in paragraph (1),
                            (ii) by redesignating paragraphs (3) 
                        through (6) as paragraphs (4) through (7), 
                        respectively, and by inserting after paragraph 
                        (2) the following new paragraph:
            ``(3) Biodiesel production credit.--If any person produces 
        biodiesel and sells or uses such biodiesel as provided in 
        section 6426(c)(1), the Secretary shall pay (without interest) 
        to such person an amount equal to the biodiesel production 
        credit with respect to such biodiesel.'',
                            (iii) by striking ``paragraph (1) or (2)'' 
                        each place it appears in paragraphs (4) and 
                        (6), as redesignated by paragraph (2), and 
                        inserting ``paragraph (1), (2), or (3)'',
                            (iv) by striking ``alternative fuel'' each 
                        place it appears in paragraphs (4) and (6), as 
                        redesignated by paragraph (2), and inserting 
                        ``fuel'', and
                            (v) by striking ``biodiesel mixture (as 
                        defined in section 6426(c)(3))'' in paragraph 
                        (7)(B), as so redesignated, and inserting 
                        ``biodiesel (within the meaning of section 
                        40A)''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to fuel sold or used after 
                December 31, 2015.
    (c) Treatment of Biodiesel as a Taxable Fuel.--
            (1) In general.--
                    (A) Taxable fuel includes biodiesel.--Paragraph (1) 
                of section 4083(a) is amended by striking ``and'' at 
                the end of subparagraph (B), by striking the period at 
                the end of subparagraph (C) and inserting ``, and'', 
                and by adding at the end the following new 
                subparagraph:
                    ``(D) biodiesel.''.
                    (B) Biodiesel defined.--Subsection (a) of section 
                4083 is amended by adding at the end the following new 
                paragraph:
            ``(4) Biodiesel.--The term `biodiesel' has the meaning 
        given such term under section 40A(d)(1), determined without 
        regard to the last sentence thereof.''.
            (2) Biodiesel production facilities treated as 
        refineries.--
                    (A) In general.--Subsection (a) of section 4081 is 
                amended by adding at the end the following new 
                paragraph:
            ``(5) Biodiesel production facilities and blending 
        facilities treated as refineries.--For purposes of this part--
                    ``(A) any facility which is used to produce 
                biodiesel, and
                    ``(B) any biodiesel blending facility,
        shall be treated as a refinery with respect to biodiesel.''.
                    (B) Biodiesel blending facility defined.--Section 
                4083 is amended by adding at the end the following new 
                subsection:
    ``(e) Biodiesel Blending Facility.--For purposes of this subpart, 
the term `biodiesel blending facility' means any facility that is 
operated by an eligible discretionary blender (as defined in section 
40A(d)(2)(C)).''.
                    (C) Bulk transfers.--Subparagraph (B) of section 
                4081(a)(1) is amended by adding at the end the 
                following new clause:
                            ``(iii) Special rules for biodiesel.--The 
                        tax imposed by this paragraph shall not apply 
                        to the removal or entry of biodiesel to any 
                        refinery or terminal if the person removing or 
                        entering the biodiesel and the operator of the 
                        refinery or terminal are registered under 
                        section 4101.''.
            (3) Rate of tax.--Subparagraph (A)(iii) of section 
        4081(a)(2) is amended by striking ``diesel fuel or kerosene'' 
        and inserting ``diesel fuel, kerosene, or biodiesel''.
            (4) Exemptions.--
                    (A) In general.--Section 4082 is amended by 
                striking ``diesel fuel and kerosene'' each place it 
                appears in subsections (a), (c), and (g) and inserting 
                ``diesel fuel, kerosene, and biodiesel''.
                    (B) Conforming amendment.--Subparagraph (A) of 
                section 4082(d)(1) is amended by inserting 
                ``biodiesel,'' after ``diesel fuel,''.
            (5) Other conforming amendments.--
                    (A) The heading for paragraph (1) of section 
                4041(a) is amended by striking ``diesel fuel and 
                kerosene'' and inserting ``diesel fuel, kerosene, and 
                biodiesel''.
                    (B) Paragraph (2) of section 6416(b) is amended by 
                striking ``diesel fuel or kerosene'' and inserting 
                ``diesel fuel, kerosene, or biodiesel''.
                    (C) Section 6427(l) is amended--
                            (i) by striking ``diesel fuel or kerosene'' 
                        each place it appears in paragraphs (1) and 
                        (5)(A) and inserting ``diesel fuel, kerosene, 
                        or biodiesel'',
                            (ii) by striking ``Diesel Fuel and 
                        Kerosene'' in the heading and inserting 
                        ``Diesel Fuel, Kerosene, and Biodiesel'', and
                            (iii) by striking ``diesel fuel or 
                        kerosene'' in the heading of paragraph (5) and 
                        inserting ``diesel fuel, kerosene, or 
                        biodiesel''.
                    (D) Section 6715(c)(1) is amended by striking 
                ``diesel fuel or kerosene'' and inserting ``diesel 
                fuel, kerosene, or biodiesel''.
            (6) Effective date.--The amendments made by this subsection 
        shall apply to biodiesel sold or used after December 31, 2015.

SEC. 106. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES PRODUCING 
              ENERGY FROM CERTAIN RENEWABLE RESOURCES.

    (a) In General.--The following provisions of section 45(d) are each 
amended by striking ``January 1, 2015'' each place it appears and 
inserting ``January 1, 2017'':
            (1) Paragraph (1).
            (2) Paragraph (2)(A).
            (3) Paragraph (3)(A).
            (4) Paragraph (4)(B).
            (5) Paragraph (6).
            (6) Paragraph (7).
            (7) Paragraph (9).
            (8) Paragraph (11)(B).
    (b) Extension of Election To Treat Qualified Facilities as Energy 
Property.--Clause (ii) of section 48(a)(5)(C) is amended by striking 
``January 1, 2015'' and inserting ``January 1, 2017''.
    (c) Effective Dates.--The amendments made by this section shall 
take effect on January 1, 2015.

SEC. 107. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2014.

SEC. 108. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND GENERATION BIOFUEL 
              PLANT PROPERTY.

    (a) In General.--Subparagraph (D) of section 168(l)(2) is amended 
by striking ``January 1, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2014.

SEC. 109. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) In General.--Subsection (h) of section 179D is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2016''.
    (b) Allocations to Indian Tribal Governments.--Paragraph (4) of 
section 179D(d) is amended by striking ``or local'' and inserting 
``local, or Indian tribal''.
    (c) Allocations to Certain Nonprofit Organizations.--
            (1) In general.--Paragraph (4) of section 179D(d), as 
        amended by subsection (b), is amended by inserting ``or by an 
        organization that is described in section 501(c)(3) and exempt 
        from tax under section 501(a),'' after ``political subdivision 
        thereof,''.
            (2) Clerical amendment.--The heading of paragraph (4) of 
        section 179D(d) is amended by inserting ``and property held by 
        certain non-profits'' after ``public property''.
    (d) Updated ASHRAE Standards for 2016.--
            (1) In general.--Paragraph (1) of section 179D(c) is 
        amended by striking ``Standard 90.1-2001'' each place it 
        appears and inserting ``Standard 90.1-2007''.
            (2) Conforming amendments.--
                    (A) Paragraph (2) of section 179D(c) is amended to 
                read as follows:
            ``(2) Standard 90.1-2007.--The term `Standard 90.1-2007' 
        means Standard 90.1-2007 of the American Society of Heating, 
        Refrigerating, and Air Conditioning Engineers and the 
        Illuminating Engineering Society of North America (as in effect 
        on the day before the date of the adoption of Standard 90.1-
        2010 of such Societies).''.
                    (B) Subsection (f) of section 179D is amended by 
                striking ``Standard 90.1-2001'' each place it appears 
                in paragraphs (1) and (2)(C)(i) and inserting 
                ``Standard 90.1-2007''.
                    (C) Paragraph (1) of section 179D(f) is amended--
                            (i) by striking ``Table 9.3.1.1'' and 
                        inserting ``Table 9.5.1'', and
                            (ii) by striking ``Table 9.3.1.2'' and 
                        inserting ``Table 9.6.1''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2015.
    (e) Effective Date.--Except as provided in subsection (d)(3), the 
amendments made by this section shall apply to property placed in 
service after December 31, 2014.

SEC. 110. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
              IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
              QUALIFIED ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2015'' and inserting ``January 1, 2017''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2014.

SEC. 111. EXTENSION OF EXCISE TAX CREDITS RELATING TO ALTERNATIVE 
              FUELS.

    (a) Extension of Alternative Fuels Excise Tax Credits.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3) are 
        each amended by striking ``December 31, 2014'' and inserting 
        ``December 31, 2016''.
            (2) Outlay payments for alternative fuels.--Subparagraph 
        (C) of section 6427(e)(7), as redesignated by section 
        6(b)(3)(A)(ii), is amended by striking ``December 31, 2014'' 
        and inserting ``December 31, 2016''.
    (b) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2014.
    (c) Special Rule for Certain Periods During 2015.--Notwithstanding 
any other provision of law, in the case of any alternative fuel credit 
properly determined under section 6426(d) of such Code for such 
periods, such credit shall be allowed, and any refund or payment 
attributable to such credit (including any payment under section 
6427(e) of such Code) shall be made, only in such manner as the 
Secretary of the Treasury (or the Secretary's delegate) shall provide. 
Such Secretary shall issue guidance within 30 days after the date of 
the enactment of this Act providing for a one-time submission of claims 
covering periods described in the preceding sentence. Such guidance 
shall provide for a 180-day period for the submission of such claims 
(in such manner as prescribed by such Secretary) to begin not later 
than 30 days after such guidance is issued. Such claims shall be paid 
by such Secretary not later than 60 days after receipt. If such 
Secretary has not paid pursuant to a claim filed under this subsection 
within 60 days after the date of the filing of such claim, the claim 
shall be paid with interest from such date determined by using the 
overpayment rate and method under section 6621 of such Code.

                    TITLE II--ADDITIONAL PROVISIONS

SEC. 201. EXTENSION OF ENERGY CREDIT FOR CERTAIN PROPERTY UNDER 
              CONSTRUCTION.

    (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
of section 48(a) are each amended by striking ``periods ending'' and 
inserting ``property the construction of which begins''.
    (b) Qualified Fuel Cell Property.--Section 48(c)(1)(D) is amended 
by striking ``for any period after December 31, 2016'' and inserting 
``the construction of which does not begin before January 1, 2017''.
    (c) Qualified Microturbine Property.--Section 48(c)(2)(D) is 
amended by striking ``for any period after December 31, 2016'' and 
inserting ``the construction of which does not begin before January 1, 
2017''.
    (d) Combined Heat and Power System Property.--Section 
48(c)(3)(A)(iv) is amended by striking ``which is placed in service'' 
and inserting ``construction of which begins''.
    (e) Qualified Small Wind Energy Property.--Section 48(c)(4)(C) is 
amended by striking ``for any period after December 31, 2016'' and 
inserting ``the construction of which does not begin before January 1, 
2017''.
    (f) Thermal Energy Property.--Section 48(a)(3)(A)(vii) is amended 
by striking ``periods ending'' and inserting ``property the 
construction of which begins''.
    (g) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. MODIFICATIONS IN CREDIT FOR COMBINED HEAT AND POWER SYSTEM 
              PROPERTY.

    (a) Increased Energy Percentage.--Section 48(a)(2)(A)(i) is amended 
by striking ``and'' at the end of subclause (III), by redesignating 
subclause (IV) as subclause (V), and by inserting after subclause (III) 
the following new subclause:
                                    ``(IV) energy property described in 
                                paragraph (3)(A)(v), and''.
    (b) Modification of Certain Capacity Limitations.--Section 
48(c)(3)(B) is amended--
            (1) by striking ``15 megawatts'' in clause (ii) and 
        inserting ``25 megawatts'',
            (2) by striking ``20,000 horsepower'' in clause (ii) and 
        inserting ``34,000 horsepower'', and
            (3) by striking clause (iii).
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 203. ENERGY CREDIT FOR WASTE HEAT TO POWER PROPERTY.

    (a) In General.--Section 48(a)(3)(A) is amended by striking ``or'' 
at the end of clause (vi), by inserting ``or'' at the end of clause 
(vii), and by adding at the end the following new clause:
                            ``(viii) waste heat to power property,''.
    (b) Waste Heat To Power Property.--Section 48(c) is amended by 
adding at the end the following new paragraph:
            ``(5) Waste heat to power property.--
                    ``(A) Waste heat to power property.--The term 
                `waste heat to power property' means property 
                comprising a system which generates electricity through 
                the recovery of a qualified waste heat resource.
                    ``(B) Qualified waste heat resource defined.--The 
                term `qualified waste heat resource' means--
                            ``(i) exhaust heat or flared gas from any 
                        industrial process,
                            ``(ii) waste gas or industrial tail gas 
                        that would otherwise be flared, incinerated, or 
                        vented,
                            ``(iii) a pressure drop in any gas for an 
                        industrial or commercial process, or
                            ``(iv) such other forms of waste heat 
                        resources as the Secretary may determine.
                    ``(C) Exception.--The term `qualified waste heat 
                resource' does not include any heat resource from a 
                process whose primary purpose is the generation of 
                electricity utilizing a fossil fuel or nuclear energy.
                    ``(D) Termination.--The term `waste heat to power 
                property' shall not include any property placed in 
                service after December 31, 2016.''.
    (c) Increased Energy Percentage.--Section 48(a)(2)(A)(i), as 
amended by section 201, is amended by striking ``and'' at the end of 
subclause (IV) and by inserting after subclause (V) the following new 
subclause:
                                    ``(VI) energy property described in 
                                paragraph (3)(A)(viii), and''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 204. INVESTMENT TAX CREDIT FOR COMMUNITY WIND PROJECTS HAVING 
              GENERATION CAPACITY OF NOT MORE THAN 20 MEGAWATTS.

    (a) In General.--Paragraph (4) of section 48(c) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following new subparagraph:
                    ``(A) In general.--The term `qualified small wind 
                energy property' means--
                            ``(i) property which uses a qualifying 
                        small wind turbine to generate electricity, or
                            ``(ii) property which uses 1 or more wind 
                        turbines with an aggregate nameplate capacity 
                        of more than 100 kilowatts but not more than 20 
                        megawatts.'', and
            (2) by redesignating subparagraph (C) as subparagraph (D) 
        and by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) Regulations.--The Secretary shall prescribe 
                such regulations as may be appropriate to prevent 
                improper division of property to attempt to meet the 
                limitation under subparagraph (A)(ii).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 205. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE 
              TO ENERGY POWER GENERATION PROJECTS, TRANSPORTATION 
              FUELS, AND RELATED ENERGY ACTIVITIES.

    (a) In General.--Subparagraph (E) of section 7704(d)(1) is 
amended--
            (1) by striking ``income and gains derived from the 
        exploration'' and inserting ``income and gains derived from the 
        following:
                            ``(i) Minerals, natural resources, etc.--
                        The exploration'',
            (2) by inserting ``or'' before ``industrial source'',
            (3) by inserting a period after ``carbon dioxide'', and
            (4) by striking ``, or the transportation or storage'' and 
        all that follows and inserting the following:
                            ``(ii) Renewable energy.--The generation of 
                        electric power (including the leasing of 
                        tangible personal property used for such 
                        generation) exclusively utilizing any resource 
                        described in section 45(c)(1) or energy 
                        property described in section 48 (determined 
                        without regard to any termination date), or in 
                        the case of a facility described in paragraph 
                        (3) or (7) of section 45(d) (determined without 
                        regard to any placed in service date or date by 
                        which construction of the facility is required 
                        to begin), the accepting or processing of such 
                        resource.
                            ``(iii) Electricity storage devices.--The 
                        receipt and sale of electric power that has 
                        been stored in a device directly connected to 
                        the grid.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, in taxable years 
ending after such date.

SEC. 206. ADDITIONAL ADVANCED ENERGY MANUFACTURING CREDIT ALLOCATIONS.

    (a) Additional Allocation of Credits.--Section 48C(d) is amended by 
adding at the end the following:
            ``(6) Additional allocation.--
                    ``(A) In general.--In addition to credits allocated 
                under paragraph (1), the Secretary, in consultation 
                with the Secretary of Energy, is authorized to conduct 
                an additional program to consider and award 
                certifications for qualified investments eligible for 
                credits under this section to qualifying advanced 
                energy project sponsors pursuant to applications from 
                such sponsors received after December 31, 2015.
                    ``(B) Limitation.--The total amount of credits that 
                may be allocated under subparagraph (A) shall not 
                exceed $2,700,000,000.
                    ``(C) Modifications to applicable rules.--For 
                purposes of this paragraph--
                            ``(i) Application period.--The 2-year 
                        period described in paragraph (2) shall begin 
                        on January 1, 2016.
                            ``(ii) Reallocation.--The 4-year period 
                        described in paragraph (4) shall begin the date 
                        of the enactment of this paragraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to periods beginning after December 31, 2015.

              TITLE III--ENDING OIL AND GAS TAX SUBSIDIES

SEC. 301. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.

    (a) In General.--Section 167(h) is amended--
            (1) by striking ``24-month period'' in paragraph (1) and 
        inserting ``7-year period'', and
            (2) by striking paragraph (5).
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2015.

SEC. 302. PRODUCING OIL AND GAS FROM MARGINAL WELLS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by striking section 45I (and by striking the item relating 
to such section in the table of sections for such subpart).
    (b) Conforming Amendment.--Section 38(b) is amended by striking 
paragraph (19).
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to credits determined for taxable years beginning after December 
31, 2015.

SEC. 303. ENHANCED OIL RECOVERY CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by striking section 43 (and by striking the item relating to 
such section in the table of sections for such subpart).
    (b) Conforming Amendment.--Section 38(b) is amended by striking 
paragraph (6).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2015.

SEC. 304. INTANGIBLE DRILLING AND DEVELOPMENT COSTS IN THE CASE OF OIL 
              AND GAS WELLS.

    (a) In General.--Subsection (c) of section 263 is amended by adding 
at the end the following new sentence: ``This subsection shall not 
apply to amounts paid or incurred by a taxpayer with respect to an oil 
or gas well after December 31, 2015.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2015.

SEC. 305. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND GAS WELLS.

    (a) In General.--Part I of subchapter I of chapter 1 is amended by 
striking section 613A (and the table of sections of such part is 
amended by striking the item relating to such section).
    (b) Conforming Amendments.--
            (1) Subsection (d) of section 45H is amended--
                    (A) by striking ``For purposes this section'' and 
                inserting the following:
            ``(1) In general.--For purposes of this section'',
                    (B) by striking ``(within the meaning of section 
                613A(d)(3))'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Related person.--For purposes of this subsection, a 
        person is a related person with respect to the taxpayer if a 
        significant ownership interest in either the taxpayer or such 
        person is held by the other, or if a third person has a 
        significant ownership interest in both the taxpayer and such 
        person. For purposes of the preceding sentence, the term 
        `significant ownership interest' means--
                    ``(A) with respect to any corporation, 5 percent or 
                more in value of the outstanding stock of such 
                corporation,
                    ``(B) with respect to a partnership, 5 percent or 
                more interest in the profits or capital of such 
                partnership, and
                    ``(C) with respect to an estate or trust, 5 percent 
                or more of the beneficial interests in such estate or 
                trust.
        For purposes of determining a significant ownership interest, 
        an interest owned by or for a corporation, partnership, trust, 
        or estate shall be considered as owned directly both by itself 
        and proportionately by its shareholders, partners, or 
        beneficiaries, as the case may be.''.
            (2) Section 56(g)(4)(F) is amended to read as follows:
                    ``(F) Depletion.--The allowance for depletion with 
                respect to any property placed in service in a taxable 
                year beginning after December 31, 1989, shall be cost 
                depletion determined under section 611.''.
            (3) Section 57(a)(1) is amended by striking the last 
        sentence.
            (4) Section 291(b)(4) is amended by adding at the end the 
        following: ``Any reference in the preceding sentence to section 
        613A shall be treated as a reference to such section as in 
        effect prior to the date of the enactment of the Bridge to a 
        Clean Energy Future Act of 2015.''.
            (5) Section 613(d) is amended by striking ``Except as 
        provided in section 613A, in the case of'' and inserting ``In 
        the case of''.
            (6) Section 613(e) is amended--
                    (A) by striking ``or section 613A'' in paragraph 
                (2), and
                    (B) by striking ``any amount described in section 
                613A(d)(5)'' in paragraph (3) and inserting ``any lease 
                bonus, advance royalty, or other amount payable without 
                regard to production from property''.
            (7) Section 705(a) is amended--
                    (A) by inserting ``and'' at the end of paragraph 
                (1)(C),
                    (B) by striking ``; and'' at the end of paragraph 
                (2)(B) and inserting a period, and
                    (C) by striking paragraph (3).
            (8) Section 776 is amended by striking subsection (a) and 
        by redesignating subsection (b) as subsection (a).
            (9) Section 954(g)(2)(D) is amended by inserting ``(as in 
        effect before the date of the enactment of the Bridge to a 
        Clean Energy Future Act of 2015)'' after ``section 613A''.
            (10) Section 993(c)(2)(C) is amended by striking ``section 
        613 or 613A'' and inserting ``section 613 (determined without 
        regard to subsection (d) thereof)''.
            (11) Section 1202(e)(3)(D) is amended by striking ``section 
        613 or 613A'' and inserting ``section 613 (determined without 
        regard to subsection (d) thereof)''.
            (12) Section 1367(a)(2) is amended by inserting ``and'' at 
        the end of subparagraph (C), by striking ``, and'' at the end 
        of subparagraph (D) and inserting a period, and by striking 
        subparagraph (E).
            (13) Section 1446(c) is amended by striking paragraph (2) 
        and by redesignating paragraph (3) as paragraph (2).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2015.

SEC. 306. REPEAL OF DEDUCTION FOR TERTIARY INJECTANTS.

    (a) In General.--Part VI of subchapter B of chapter 1 is amended by 
striking section 193 (and the table of sections of such subpart is 
amended by striking the item relating to such section).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 307. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITATIONS FOR WORKING 
              INTERESTS IN OIL AND GAS PROPERTIES.

    (a) In General.--Section 469(c)(3) is amended by adding at the end 
the following new subparagraph:
                    ``(C) Termination.--Subparagraph (A) shall not 
                apply with respect to any taxable year beginning after 
                the date of the enactment of this Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2015.

SEC. 308. DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION 
              ACTIVITIES NOT ALLOWED WITH RESPECT TO OIL AND GAS 
              ACTIVITIES.

    (a) In General.--Section 199(c)(4)(B) is amended by striking 
``and'' at the end of clause (ii), by striking the period at the end of 
clause (iii) and inserting ``, and'', and by inserting after clause 
(iii) the following new clause:
                            ``(iv) the production, refining, 
                        processing, transportation, or distribution of 
                        oil, gas, or any primary product thereof.''.
    (b) Conforming Amendment.--Section 199(d) is amended by striking 
paragraph (9) and by redesignating paragraph (10) as paragraph (9).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 309. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING FOR OIL 
              AND GAS COMPANIES.

    (a) In General.--Section 472 is amended by adding at the end the 
following new subsection:
    ``(h) Oil and Gas Companies.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, a major integrated oil company may not use the 
        method provided in subsection (b) in inventorying of any goods.
            ``(2) Major integrated oil company.--For purposes of this 
        subsection, the term `major integrated oil company' means, with 
        respect to any taxable year, a producer of crude oil--
                    ``(A) which has an average daily worldwide 
                production of crude oil of at least 500,000 barrels for 
                the taxable year,
                    ``(B) which has gross receipts in excess of 
                $1,000,000,000 for the taxable year, and
                    ``(C) the average daily refinery runs of the 
                taxpayer and related persons for the taxable year 
                exceed 75,000 barrels.
            ``(3) Special rules.--
                    ``(A) Crude production and gross receipts.--For 
                purposes of subparagraphs (A) and (B) of paragraph 
                (2)--
                            ``(i) Controlled groups and common 
                        control.--All persons treated as a single 
                        employer under subsections (a) and (b) of 
                        section 52 shall be treated as 1 person.
                            ``(ii) Short taxable years.--In the case of 
                        a short taxable year, the rule under section 
                        448(c)(3)(B) shall apply.
                    ``(B) Average daily refinery runs.--For purposes of 
                paragraph (2)(C)--
                            ``(i) In general.--The average daily 
                        refinery runs for any taxable year shall be 
                        determined by dividing the aggregate refinery 
                        runs for the taxable year by the number of days 
                        in the taxable year.
                            ``(ii) Related persons.--A person is a 
                        related person with respect to the taxpayer if 
                        a significant ownership interest in either the 
                        taxpayer or such person is held by the other, 
                        or if a third person has a significant 
                        ownership interest in both the taxpayer and 
                        such person.
                            ``(iii) Significant ownership interest.--
                        For purposes of clause (ii), the term 
                        `significant ownership interest' means--
                                    ``(I) with respect to any 
                                corporation, 15 percent or more in 
                                value of the outstanding stock of such 
                                corporation,
                                    ``(II) with respect to a 
                                partnership, 15 percent or more 
                                interest in the profits or capital of 
                                such partnership, and
                                    ``(III) with respect to an estate 
                                or trust, 15 percent or more of the 
                                beneficial interests in such estate or 
                                trust.
                        For purposes of determining a significant 
                        ownership interest, an interest owned by or for 
                        a corporation, partnership, trust, or estate 
                        shall be considered as owned directly both by 
                        itself and proportionately by its shareholders, 
                        partners, or beneficiaries, as the case may 
                        be.''.
    (b) Effective Date and Special Rule.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to taxable years beginning after December 31, 2015.
            (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 the date of the enactment of this Act--
                    (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.

SEC. 310. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO DUAL 
              CAPACITY TAXPAYERS.

    (a) In General.--Section 901 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) the 
following new subsection:
    ``(n) Special Rules Relating to Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other provision of 
        this chapter, any amount paid or accrued by a dual capacity 
        taxpayer to a foreign country or possession of the United 
        States for any period with respect to combined foreign oil and 
        gas income (as defined in section 907(b)(1)) shall not be 
        considered a tax to the extent such amount exceeds the amount 
        (determined in accordance with regulations) which would have 
        been required to be paid if the taxpayer were not a dual 
        capacity taxpayer.
            ``(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.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxes paid or accrued in taxable years beginning after 
        December 31, 2015.
            (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.
                                 <all>