[Congressional Record Volume 162, Number 18 (Monday, February 1, 2016)]
[Senate]
[Pages S443-S445]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3176. Mr. SCHATZ (for himself and Mr. Whitehouse) submitted an
amendment intended to be proposed to amendment SA 2953 proposed by Ms.
Murkowski to the bill S. 2012, to provide for the modernization of the
energy policy of the United States, and for other purposes; which was
ordered to lie on the table; as follows:
[[Page S444]]
At the appropriate place, insert the following:
SEC. ___. PHASE OUT OF TAX PREFERENCES FOR FOSSIL FUELS.
(a) Findings.--Congress finds the following:
(1) United States tax policy has provided tax preferences,
such as special deductions, special tax rates, tax credits,
and grants in lieu of tax credits, for oil and gas production
for 100 years.
(2) United States tax policy has provided tax preferences
for coal production for over 80 years.
(3) In order to ensure that all sources of energy compete
on an equal footing, as tax credits for renewable energy are
phased out over the next 4 years, fossil fuel tax preferences
should be phased out on the same schedule.
(b) Expensing of Intangible Drilling Costs.--Section 263 of
the Internal Revenue Code of 1986 is amended--
(1) in subsection (c), by striking ``subsection (i)'' and
inserting ``subsections (i) and (j)'', and
(2) by adding at the end the following new subsection:
``(j) Phase Out of Deduction for Intangible Drilling
Costs.--In the case of a dual capacity taxpayer which is a
major integrated oil company (within the meaning of section
167(h)(5)), for any intangible drilling and development costs
paid or incurred with respect to an oil or gas well, the
amount of such costs allowed as a deduction under subsection
(c) shall be reduced by--
``(1) in the case of any costs paid or incurred after
December 31, 2016, and before January 1, 2018, 20 percent,
``(2) in the case of any costs paid or incurred after
December 31, 2017, and before January 1, 2019, 40 percent,
``(3) in the case of any costs paid or incurred after
December 31, 2018, and before January 1, 2020, 60 percent,
and
``(4) in the case of any costs paid or incurred after
December 31, 2019, 100 percent.''.
(c) Percentage Depletion for Oil and Natural Gas Wells.--
Section 613A(d) of such Code is amended by adding at the end
the following new paragraph:
``(6) Phase out of percentage depletion for oil and natural
gas wells.--In the case of a dual capacity taxpayer which is
a major integrated oil company (within the meaning of section
167(h)(5)), the amount allowed as a deduction for the taxable
year which is attributable to the application of subsection
(c) (determined after the application of paragraphs (1)
through (5) of this subsection and without regard to this
paragraph) shall be reduced by--
``(A) in the case of any crude oil or natural gas produced
after December 31, 2016, and before January 1, 2018, 20
percent,
``(B) in the case of any crude oil or natural gas produced
after December 31, 2017, and before January 1, 2019, 40
percent,
``(C) in the case of any crude oil or natural gas produced
after December 31, 2018, and before January 1, 2020, 60
percent, and
``(D) in the case of any crude oil or natural gas produced
after December 31, 2019, 100 percent.''.
(d) Domestic Manufacturing Deduction for Fossil Fuels.--
Section 199(d)(9) of such Code is amended by adding at the
end the following new subparagraph:
``(D) Phase out of deduction for oil related qualified
production activities income.--In the case of a dual capacity
taxpayer which is a major integrated oil company (within the
meaning of section 167(h)(5)), the amount allowable as a
deduction under subsection (a) (determined after the
application of subparagraph (A) and without regard to this
subparagraph) shall be reduced by--
``(i) in the case of any oil related qualified production
activities income received or accrued after December 31,
2016, and before January 1, 2018, 20 percent,
``(ii) in the case of any oil related qualified production
activities income received or accrued after December 31,
2017, and before January 1, 2019, 40 percent,
``(iii) in the case of any oil related qualified production
activities income received or accrued after December 31,
2018, and before January 1, 2020, 60 percent, and
``(iv) in the case of any oil related qualified production
activities income received or accrued after December 31,
2019, 100 percent.''.
(e) Amortization of Geological and Geophysical
Expenditures.--Section 167(h) of such Code is amended by
adding at the end the following new paragraph:
``(6) Phase out of amortization of geological and
geophysical expenditures.--In the case of a dual capacity
taxpayer which is a major integrated oil company (within the
meaning of section 167(h)(5)), the amount of geological and
geophysical expenses paid or incurred by a taxpayer which are
allowed as a deduction under this subsection (without regard
to this paragraph) shall be reduced by--
``(A) in the case of any such expenses paid or incurred
after December 31, 2016, and before January 1, 2018, 20
percent,
``(B) in the case of any such expenses paid or incurred
after December 31, 2017, and before January 1, 2019, 40
percent,
``(C) in the case of any such expenses paid or incurred
after December 31, 2018, and before January 1, 2020, 60
percent, and
``(D) in the case of any such expenses paid or incurred
after December 31, 2019, 100 percent.''.
(f) Percentage Depletion for Oil Shale.--Section 613 of
such Code is amended by adding at the end the following new
subsection:
``(f) Phase Out of Percentage Depletion for Oil Shale.--In
the case of a dual capacity taxpayer which is a major
integrated oil company (within the meaning of section
167(h)(5)), the allowance for depletion for oil shale
determined under this section (without regard to this
subsection) shall be reduced by--
``(1) in the case of any income received or accrued from
the property after December 31, 2016, and before January 1,
2018, 20 percent,
``(2) in the case of any income received or accrued from
the property after December 31, 2017, and before January 1,
2019, 40 percent,
``(3) in the case of any income received or accrued from
the property after December 31, 2018, and before January 1,
2020, 60 percent, and
``(4) in the case of any income received or accrued from
the property after December 31, 2019, 100 percent.''.
(g) Expensing of Exploration and Development Costs for Oil
Shale.--Section 617 of such Code is amended--
(1) by redesignating subsection (i) as subsection (j), and
(2) by inserting after subsection (h) the following new
subsection:
``(i) Phase Out of Expensing of Exploration and Development
Costs for Oil Shale.--In the case of a dual capacity taxpayer
which is a major integrated oil company (within the meaning
of section 167(h)(5)), the amount of expenditures related to
oil shale which are allowed as a deduction under subsection
(a) shall be reduced by--
``(1) in the case of any such expenditures paid or incurred
after December 31, 2016, and before January 1, 2018, 20
percent,
``(2) in the case of any such expenditures paid or incurred
after December 31, 2017, and before January 1, 2019, 40
percent,
``(3) in the case of any such expenditures paid or incurred
after December 31, 2018, and before January 1, 2020, 60
percent, and
``(4) in the case of any such expenditures paid or incurred
after December 31, 2019, 100 percent.''.
(h) Capital Gains Treatment for Royalties of Coal.--Section
631 of such Code is amended by adding at the end the
following new subsection:
``(d) Phase Out of Capital Gains Treatment for Royalties of
Coal.--In the case of coal (including lignite), the amount of
gain or loss on the sale of such coal to which subsection (c)
applies shall be reduced by--
``(1) in the case of any such gain or loss after December
31, 2016, and before January 1, 2018, 20 percent,
``(2) in the case of any such gain or loss after December
31, 2017, and before January 1, 2019, 40 percent,
``(3) in the case of any such gain or loss after December
31, 2018, and before January 1, 2020, 60 percent, and
``(4) in the case of any such gain or loss after December
31, 2019, 100 percent.''.
(i) Deduction for Tertiary Injectants.--Section 193 of such
Code is amended by adding at the end the following new
subsection:
``(d) Phase Out of Deduction for Tertiary Injectants.--In
the case of a dual capacity taxpayer which is a major
integrated oil company (within the meaning of section
167(h)(5)), the amount of qualified tertiary injectant
expenses allowable as a deduction under subsection (a) shall
be reduced by--
``(1) in the case of any such expenditures paid or incurred
after December 31, 2016, and before January 1, 2018, 20
percent,
``(2) in the case of any such expenditures paid or incurred
after December 31, 2017, and before January 1, 2019, 40
percent,
``(3) in the case of any such expenditures paid or incurred
after December 31, 2018, and before January 1, 2020, 60
percent, and
``(4) in the case of any such expenditures paid or incurred
after December 31, 2019, 100 percent.''.
(j) Exception to Passive Loss Limitation for Working
Interests in Oil and Natural Gas Properties.--Section 469(c)
of such Code is amended by adding at the end the following
new paragraph:
``(8) Phase out of exception to passive loss limitation for
working interests in oil and natural gas properties.--In the
case of a dual capacity taxpayer which is a major integrated
oil company (within the meaning of section 167(h)(5)), for
any loss from a working interest in any oil or gas property,
the amount of such loss to which paragraph (3) applies shall
be reduced by--
``(A) in the case of any such loss after December 31, 2016,
and before January 1, 2018, 20 percent,
``(B) in the case of any such loss after December 31, 2017,
and before January 1, 2019, 40 percent,
``(C) in the case of any such loss after December 31, 2018,
and before January 1, 2020, 60 percent, and
``(D) in the case of any such loss after December 31, 2019,
100 percent.''.
(k) Marginal Wells Credit.--Section 45I(d) of such Code is
amended by adding at the end the following new paragraph:
``(4) Phase out of marginal wells credit.--In the case of a
dual capacity taxpayer which is a major integrated oil
company (within the meaning of section 167(h)(5)), the amount
of the credit determined under subsection (a) shall be
reduced by--
``(A) in the case of any qualified crude oil production or
qualified natural gas production after December 31, 2016, and
before January 1, 2018, 20 percent,
[[Page S445]]
``(B) in the case of any qualified crude oil production or
qualified natural gas production after December 31, 2017, and
before January 1, 2019, 40 percent,
``(C) in the case of any qualified crude oil production or
qualified natural gas production after December 31, 2018, and
before January 1, 2020, 60 percent, and
``(D) in the case of any qualified crude oil production or
qualified natural gas production after December 31, 2019, 100
percent.''.
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