117 HR 1329 IH: Surface Transportation Investment Act of 2021
U.S. House of Representatives
2021-02-25
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EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents(a)This Act may be cited as the Surface Transportation Investment Act of 2021
.(b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Title I—Close big oil tax loopholesSec. 2. Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers.Sec. 3. Limitation on deduction for intangible drilling and development costs; amortization of disallowed amounts.Sec. 4. Limitation on percentage depletion allowance for oil and gas wells.Sec. 5. Limitation on deduction for tertiary injectants.Sec. 6. Modification of definition of major integrated oil company.Title II—Transportation block grantsSec. 201. Use of revenue for transportation block grants.<enum>I</enum><header>Close big oil tax loopholes</header><section commented="no" display-inline="no-display-inline" id="H2F16F4700F8A41E38C6CCD4AA451683F"><enum>2.</enum><header>Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers</header><subsection commented="no" display-inline="no-display-inline" id="H2254ADB55FAB4EDA96C34566CF47F743"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/901">Section 901</external-xref> 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:</text><quoted-block display-inline="no-display-inline" id="HB7D79FE52DC748609EC0FC8B91041570" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="HBDB17C16025743F9A19F1B24A0F5D3C1"><enum>(n)</enum><header>Special rules relating to major integrated oil companies which are dual capacity taxpayers</header><paragraph commented="no" display-inline="no-display-inline" id="H3F93089FCC9148E982EE3BE065A03E96"><enum>(1)</enum><header>General rule</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (within the meaning of section 167(h)(5)) to a foreign country or possession of the United States for any period shall not be considered a tax—</text><subparagraph commented="no" display-inline="no-display-inline" id="H41AD885902984ADDBD7EA79F456E36BA"><enum>(A)</enum><text display-inline="yes-display-inline">if, for such period, the foreign country or possession does not impose a generally applicable income tax, or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6CCA7B21220A49C480F9849819B6F4F0"><enum>(B)</enum><text display-inline="yes-display-inline">to the extent such amount exceeds the amount (determined in accordance with regulations) which—</text><clause commented="no" display-inline="no-display-inline" id="H1296A526FA10411591477C1BE2DB2795"><enum>(i)</enum><text display-inline="yes-display-inline">is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or</text></clause><clause commented="no" display-inline="no-display-inline" id="HDF3527B7FB384AFFABEA83484C0C4B38"><enum>(ii)</enum><text display-inline="yes-display-inline">would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.</text></clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">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). </continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1C4FCAAFF2184E198149FEF8EB70B5E2"><enum>(2)</enum><header>Dual capacity taxpayer</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>dual capacity taxpayer</term> means, with respect to any foreign country or possession of the United States, a person who—</text><subparagraph commented="no" display-inline="no-display-inline" id="HFB1A96B0AA3641D7AB96EAFFB8C0E7E5"><enum>(A)</enum><text display-inline="yes-display-inline">is subject to a levy of such country or possession, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H17A7DB58AA284152B4A695B36B733745"><enum>(B)</enum><text display-inline="yes-display-inline">receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H98005884E69B4E9694CBCDE8FC3E67C8"><enum>(3)</enum><header>Generally applicable income tax</header><text display-inline="yes-display-inline">For purposes of this subsection—</text><subparagraph commented="no" display-inline="no-display-inline" id="HC60D8508809445568397EAC611FBE0A4"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>generally applicable income tax</term> 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.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBC2996A5A78B481A8273300061C0E86B"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—</text><clause commented="no" display-inline="no-display-inline" id="H61862FA2BDA6417A954DAD05B5E81DDD"><enum>(i)</enum><text display-inline="yes-display-inline">persons who are not dual capacity taxpayers, and</text></clause><clause commented="no" display-inline="no-display-inline" id="HB032D9D18AE94ACA97B4B1D963E1BC35"><enum>(ii)</enum><text display-inline="yes-display-inline">persons who are citizens or residents of the foreign country or possession.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H88E57AF969C9404885A3C7DA3B4355DE"><enum>(b)</enum><header>Effective Date</header><paragraph commented="no" display-inline="no-display-inline" id="H9A72E82CEFE54DC488601484C0A9B9E8"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5C3E0E86284248F18570C00423063B37"><enum>(2)</enum><header>Contrary treaty obligations upheld</header><text display-inline="yes-display-inline">The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H9DC73530F3DB439DB510F4D65033597F"><enum>3.</enum><header>Limitation on deduction for intangible drilling and development costs; amortization of disallowed amounts</header><subsection commented="no" display-inline="no-display-inline" id="H3BB9E7882AAD4D9B988AAE1AD41EFA03"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(c)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="HBFA032E12B994092BFF367B08E0E13AE" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="HF202E0A03A2844208B5B6302CF8C62A3"><enum>(c)</enum><header display-inline="yes-display-inline">Intangible drilling and development costs in the case of oil and gas wells and geothermal wells</header><paragraph commented="no" display-inline="no-display-inline" id="HA7C08AF958854736B9A60CF51D261312"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding subsection (a), and except as provided in subsection (i), regulations shall be prescribed by the Secretary under this subtitle corresponding to the regulations which granted the option to deduct as expenses intangible drilling and development costs in the case of oil and gas wells and which were recognized and approved by the Congress in House Concurrent Resolution 50, Seventy-ninth Congress. Such regulations shall also grant the option to deduct as expenses intangible drilling and development costs in the case of wells drilled for any geothermal deposit (as defined in section 613(e)(2)) to the same extent and in the same manner as such expenses are deductible in the case of oil and gas wells. This subsection shall not apply with respect to any costs to which any deduction is allowed under section 59(e) or 291.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9733DA10C4D64317AF8FB71515687554"><enum>(2)</enum><header>Exclusion</header><subparagraph commented="no" display-inline="no-display-inline" id="H9D438F7233CB4409950F40801C0508CE"><enum>(A)</enum><header>In general</header><text>This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)).</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA78D3601D804A59AE10E267E1EAAB71"><enum>(B)</enum><header>Amortization of amounts not allowable as deductions under subparagraph <enum-in-header>(A)</enum-in-header></header><text>The amount not allowable as a deduction for any taxable year by reason of subparagraph (A) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred. For purposes of section 1254, any deduction under this subparagraph shall be treated as a deduction under this subsection.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H99FC6030D84840779BD7FA1ED0387704"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2021.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H136970767CFD438CB457F2A8E48DEA4E" section-type="subsequent-section"><enum>4.</enum><header display-inline="yes-display-inline">Limitation on percentage depletion allowance for oil and gas wells</header><subsection commented="no" display-inline="no-display-inline" id="H891583D1405C4FF38F22D3409CB5A002"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/613A">Section 613A</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text><quoted-block display-inline="no-display-inline" id="H4A785C54BF0F493AABD70D7A9607E739" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="H5B3C8C36D0544B2E869B7877C408DF6C"><enum>(f)</enum><header display-inline="yes-display-inline">Application with respect to major integrated oil companies</header><text display-inline="yes-display-inline">In the case of any taxable year in which the taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)), the allowance for percentage depletion shall be zero.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H652BA7E8A48648339D8C01F81E9685AD"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after December 31, 2021.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="HC8B2A8DB5AA946739DCE469ACA9384F0"><enum>5.</enum><header>Limitation on deduction for tertiary injectants</header><subsection commented="no" display-inline="no-display-inline" id="H763B9A4073B442EF9BC5714A90020448"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/193">Section 193</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text><quoted-block display-inline="no-display-inline" id="H3519E7056C074A809BDF502341E108CA" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="H91A686CA163445DBA4F9C5C32E6E679E"><enum>(d)</enum><header>Application with respect to major integrated oil companies</header><paragraph commented="no" display-inline="no-display-inline" id="H71369FF7CEEC48F3864DE36A5B7F3699"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (within the meaning of section 167(h)(5)).</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H616E108ADAB84EAE8BD1C8BA4F8D0610"><enum>(2)</enum><header display-inline="yes-display-inline">Amortization of amounts not allowable as deductions under paragraph <enum-in-header>(1)</enum-in-header></header><text display-inline="yes-display-inline">The amount not allowable as a deduction for any taxable year by reason of paragraph (1) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H8B23B16517274A8CBCA06CE92A84D4E3"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2021.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="H0096050C7A974845A297504A47BF6F83"><enum>6.</enum><header>Modification of definition of major integrated oil company</header><subsection commented="no" display-inline="no-display-inline" id="H168E7DFDA5DD4743ACD1C2EF9E6D6C43"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/167">Section 167(h)(5)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text><quoted-block act-name="" id="HAB50F140E750473BA9C35126C02384FE" style="OLC"><subparagraph id="HC506996FBE9B4CAF9D969A284725B9EE"><enum>(C)</enum><header>Certain successors in interest</header><text>For purposes of this paragraph, the term <term>major integrated oil company</term> includes any successor in interest of a company that was described in subparagraph (B) in any taxable year, if such successor controls more than 50 percent of the crude oil production or natural gas production of such company.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HCBE0F4B800F74484A0D3280D40454FD7"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" display-inline="no-display-inline" id="H6AFA3434108A451DA820724EEB431665"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/167">Section 167(h)(5)(B)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>except as provided in subparagraph (C), </quote> after <quote>For purposes of this paragraph,</quote>.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H34FC5739AE1D41209BC090E2FB5A8732"><enum>(2)</enum><header>Taxable years tested</header><text>Section 167(h)(5)(B)(iii) of such Code is amended—</text><subparagraph commented="no" display-inline="no-display-inline" id="H507889138EA14E899CDD853F2DB96F03"><enum>(A)</enum><text>by striking <quote>does not apply by reason of paragraph (4) of section 613A(d)</quote> and inserting <quote>did not apply by reason of paragraph (4) of section 613A(d) for any taxable year after 2004</quote>, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEFB1B501A1D0467BAD914085A8F591D8"><enum>(B)</enum><text>by striking <quote>does not apply</quote> in subclause (II) and inserting <quote>did not apply for the taxable year</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6106C9FC42BF4146B0163969FEA87C64"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2021.</text></subsection></section><enum>II</enum><header>Transportation block grants</header><section id="H8AFE6A88F3094FAD88AA611169C5F43D"><enum>201.</enum><header>Use of revenue for transportation block grants</header><subsection id="HBF5C25B427CD4F6394221E126BE54888"><enum>(a)</enum><header>In general</header><text>Subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/98">chapter 98</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:</text><quoted-block id="HBEC2EA9CDEAE43928F6E994911A2F631"><section id="H2A51974E2DF54A8196E939F9C456FE8A"><enum>9512.</enum><header>Transportation Block Grant Fund</header><subsection id="HB7A0328DD1A048EF8D28E5480D809653"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established in the Treasury a fund to be known as the <quote>Transportation Block Grant Fund</quote> consisting of such amounts as may be appropriated or credited to the fund as provided in this section or section 9602(b).</text></subsection><subsection id="HF41ECFD598CC4241AEB911D4A467A2C9"><enum>(b)</enum><header>Transfer to fund</header><text display-inline="yes-display-inline">There is hereby appropriated to the fund such amounts as the Secretary estimates are equivalent to the increase in revenue received in the Treasury by reason of the enactment of title I of the <short-title>Surface Transportation Investment Act of 2021</short-title>, and the amendments made thereby.</text></subsection><subsection id="HD22F5C84492C43D0801494077AAF01D9"><enum>(c)</enum><header>Expenditures from the fund</header><text display-inline="yes-display-inline">Amounts in the fund shall be available for making grants under the surface transportation block grant program established under section 133 of title 23, United States Code.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H8D5024E5D0074C81868F9DC6368B9436"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H332F97482A0F4147A8751E10906A30FB" style="OLC"><toc regeneration="yes-regeneration"><toc-entry idref="H2A51974E2DF54A8196E939F9C456FE8A" level="section">Sec. 9512. Transportation Block Grant Fund.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>