| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 383 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies |
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| 6 | 6 | | for oil companies, and for other purposes. |
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| 7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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| 8 | 8 | | JANUARY14, 2025 |
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| 9 | 9 | | Mr. C |
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| 10 | 10 | | ASTEN(for himself, Mr. BEYER, Mr. LEVIN, Ms. BROWNLEY, Mr. |
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| 11 | 11 | | C |
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| 12 | 12 | | LEAVER, Mr. COHEN, Mr. HUFFMAN, Mr. KHANNA, Ms. PINGREE, Ms. |
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| 13 | 13 | | S |
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| 14 | 14 | | CHAKOWSKY, Mr. TONKO, and Ms. MOOREof Wisconsin) introduced the |
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| 15 | 15 | | following bill; which was referred to the Committee on Ways and Means |
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| 16 | 16 | | A BILL |
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| 17 | 17 | | To amend the Internal Revenue Code of 1986 to repeal |
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| 18 | 18 | | fossil fuel subsidies for oil companies, and for other purposes. |
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| 19 | 19 | | Be it enacted by the Senate and House of Representa-1 |
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| 20 | 20 | | tives of the United States of America in Congress assembled, 2 |
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| 21 | 21 | | SECTION 1. SHORT TITLE. 3 |
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| 22 | 22 | | This Act may be cited as the ‘‘End Oil and Gas Tax 4 |
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| 23 | 23 | | Subsidies Act of 2025’’. 5 |
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| 24 | 24 | | SEC. 2. AMORTIZATION OF GEOLOGICAL AND GEO-6 |
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| 25 | 25 | | PHYSICAL EXPENDITURES. 7 |
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| 26 | 26 | | (a) I |
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| 27 | 27 | | NGENERAL.—Section 167(h) of the Internal 8 |
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| 28 | 28 | | Revenue Code of 1986 is amended— 9 |
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| 30 | 30 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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| 31 | 31 | | •HR 383 IH |
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| 32 | 32 | | (1) by striking ‘‘24-month period’’ in paragraph 1 |
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| 33 | 33 | | (1) and inserting ‘‘7-year period’’, and 2 |
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| 34 | 34 | | (2) by striking paragraph (5). 3 |
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| 35 | 35 | | (b) E |
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| 36 | 36 | | FFECTIVEDATE.—The amendment made by 4 |
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| 37 | 37 | | this section shall apply to amounts paid or incurred in tax-5 |
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| 38 | 38 | | able years beginning after December 31, 2024. 6 |
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| 39 | 39 | | SEC. 3. PRODUCING OIL AND GAS FROM MARGINAL WELLS. 7 |
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| 40 | 40 | | (a) I |
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| 41 | 41 | | NGENERAL.—Subpart D of part IV of sub-8 |
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| 42 | 42 | | chapter A of chapter 1 of the Internal Revenue Code of 9 |
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| 43 | 43 | | 1986 is amended by striking section 45I (and by striking 10 |
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| 44 | 44 | | the item relating to such section in the table of sections 11 |
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| 45 | 45 | | for such subpart). 12 |
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| 46 | 46 | | (b) C |
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| 47 | 47 | | ONFORMINGAMENDMENT.—Section 38(b) of 13 |
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| 48 | 48 | | such Code is amended by striking paragraph (19). 14 |
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| 49 | 49 | | (c) E |
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| 50 | 50 | | FFECTIVEDATE.—The amendment made by 15 |
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| 51 | 51 | | subsection (a) shall apply to credits determined for taxable 16 |
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| 52 | 52 | | years beginning after December 31, 2024. 17 |
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| 53 | 53 | | SEC. 4. ENHANCED OIL RECOVERY CREDIT. 18 |
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| 54 | 54 | | (a) I |
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| 55 | 55 | | NGENERAL.—Subpart D of part IV of sub-19 |
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| 56 | 56 | | chapter A of chapter 1 of the Internal Revenue Code of 20 |
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| 57 | 57 | | 1986 is amended by striking section 43 (and by striking 21 |
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| 58 | 58 | | the item relating to such section in the table of sections 22 |
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| 59 | 59 | | for such subpart). 23 |
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| 60 | 60 | | (b) C |
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| 61 | 61 | | ONFORMINGAMENDMENT.—Section 38(b) of 24 |
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| 62 | 62 | | such Code is amended by striking paragraph (6). 25 |
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| 64 | 64 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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| 65 | 65 | | •HR 383 IH |
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| 66 | 66 | | (c) EFFECTIVEDATE.—The amendments made by 1 |
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| 67 | 67 | | this section shall apply to amounts paid or incurred in tax-2 |
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| 68 | 68 | | able years beginning after December 31, 2024. 3 |
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| 69 | 69 | | SEC. 5. INTANGIBLE DRILLING AND DEVELOPMENT COSTS 4 |
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| 70 | 70 | | IN THE CASE OF OIL AND GAS WELLS. 5 |
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| 71 | 71 | | (a) I |
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| 72 | 72 | | NGENERAL.—Subsection (c) of section 263 of 6 |
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| 73 | 73 | | the Internal Revenue Code of 1986 is amended by adding 7 |
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| 74 | 74 | | at the end the following new sentence: ‘‘This subsection 8 |
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| 75 | 75 | | shall not apply to amounts paid or incurred by a taxpayer 9 |
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| 76 | 76 | | with respect to an oil or gas well after December 31, 10 |
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| 77 | 77 | | 2024.’’. 11 |
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| 78 | 78 | | (b) E |
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| 79 | 79 | | FFECTIVEDATE.—The amendment made by 12 |
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| 80 | 80 | | this section shall apply to amounts paid or incurred in tax-13 |
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| 81 | 81 | | able years beginning after December 31, 2024. 14 |
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| 82 | 82 | | SEC. 6. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND 15 |
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| 83 | 83 | | GAS WELLS. 16 |
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| 84 | 84 | | (a) I |
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| 85 | 85 | | NGENERAL.—Part I of subchapter I of chapter 17 |
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| 86 | 86 | | 1 of the Internal Revenue Code of 1986 is amended by 18 |
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| 87 | 87 | | striking section 613A (and the table of sections of such 19 |
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| 88 | 88 | | part is amended by striking the item relating to such sec-20 |
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| 89 | 89 | | tion). 21 |
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| 90 | 90 | | (b) C |
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| 91 | 91 | | ONFORMINGAMENDMENTS.— 22 |
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| 92 | 92 | | (1) Subsection (d) of section 45H of such Code 23 |
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| 93 | 93 | | is amended— 24 |
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| 95 | 95 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
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| 96 | 96 | | •HR 383 IH |
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| 97 | 97 | | (A) by striking ‘‘For purposes of this sec-1 |
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| 98 | 98 | | tion’’ and inserting the following: 2 |
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| 99 | 99 | | ‘‘(1) I |
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| 100 | 100 | | N GENERAL.—For purposes of this sec-3 |
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| 101 | 101 | | tion’’, 4 |
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| 102 | 102 | | (B) by striking ‘‘(within the meaning of 5 |
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| 103 | 103 | | section 613A(d)(3))’’, and 6 |
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| 104 | 104 | | (C) by adding at the end the following new 7 |
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| 105 | 105 | | paragraph: 8 |
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| 106 | 106 | | ‘‘(2) R |
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| 107 | 107 | | ELATED PERSON.—For purposes of this 9 |
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| 108 | 108 | | subsection, a person is a related person with respect 10 |
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| 109 | 109 | | to the taxpayer if a significant ownership interest in 11 |
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| 110 | 110 | | either the taxpayer or such person is held by the 12 |
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| 111 | 111 | | other, or if a third person has a significant owner-13 |
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| 112 | 112 | | ship interest in both the taxpayer and such person. 14 |
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| 113 | 113 | | For purposes of the preceding sentence, the term 15 |
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| 114 | 114 | | ‘significant ownership interest’ means— 16 |
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| 115 | 115 | | ‘‘(A) with respect to any corporation, 5 17 |
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| 116 | 116 | | percent or more in value of the outstanding 18 |
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| 117 | 117 | | stock of such corporation, 19 |
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| 118 | 118 | | ‘‘(B) with respect to a partnership, 5 per-20 |
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| 119 | 119 | | cent or more interest in the profits or capital of 21 |
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| 120 | 120 | | such partnership, and 22 |
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| 121 | 121 | | ‘‘(C) with respect to an estate or trust, 5 23 |
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| 122 | 122 | | percent or more of the beneficial interests in 24 |
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| 123 | 123 | | such estate or trust. 25 |
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| 125 | 125 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 |
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| 126 | 126 | | •HR 383 IH |
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| 127 | 127 | | For purposes of determining a significant ownership 1 |
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| 128 | 128 | | interest, an interest owned by or for a corporation, 2 |
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| 129 | 129 | | partnership, trust, or estate shall be considered as 3 |
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| 130 | 130 | | owned directly both by itself and proportionately by 4 |
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| 131 | 131 | | its shareholders, partners, or beneficiaries, as the 5 |
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| 132 | 132 | | case may be.’’. 6 |
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| 133 | 133 | | (2) Section 57(a)(1) of such Code is amended 7 |
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| 134 | 134 | | by striking the last sentence. 8 |
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| 135 | 135 | | (3) Section 291(b)(4) of such Code is amended 9 |
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| 136 | 136 | | by adding at the end the following: ‘‘Any reference 10 |
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| 137 | 137 | | in the preceding sentence to section 613A shall be 11 |
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| 138 | 138 | | treated as a reference to such section as in effect 12 |
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| 139 | 139 | | prior to the date of the enactment of the End Oil 13 |
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| 140 | 140 | | and Gas Tax Subsidies Act of 2025.’’. 14 |
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| 141 | 141 | | (4) Section 613(d) of such Code is amended by 15 |
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| 142 | 142 | | striking ‘‘Except as provided in section 613A, in the 16 |
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| 143 | 143 | | case of’’ and inserting ‘‘In the case of’’. 17 |
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| 144 | 144 | | (5) Section 613(e) of such Code is amended— 18 |
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| 145 | 145 | | (A) by striking ‘‘or section 613A’’ in para-19 |
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| 146 | 146 | | graph (2), and 20 |
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| 147 | 147 | | (B) by striking ‘‘any amount described in 21 |
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| 148 | 148 | | section 613A(d)(5)’’ in paragraph (3) and in-22 |
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| 149 | 149 | | serting ‘‘any lease bonus, advance royalty, or 23 |
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| 150 | 150 | | other amount payable without regard to produc-24 |
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| 151 | 151 | | tion from property’’. 25 |
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| 153 | 153 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
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| 154 | 154 | | •HR 383 IH |
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| 155 | 155 | | (6) Section 705(a) of such Code is amended— 1 |
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| 156 | 156 | | (A) by inserting ‘‘and’’ at the end of para-2 |
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| 157 | 157 | | graph (1)(C), 3 |
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| 158 | 158 | | (B) by striking ‘‘; and’’ at the end of para-4 |
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| 159 | 159 | | graph (2)(B) and inserting a period, and 5 |
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| 160 | 160 | | (C) by striking paragraph (3). 6 |
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| 161 | 161 | | (7) Section 993(c)(2)(C) of such Code is 7 |
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| 162 | 162 | | amended by striking ‘‘section 613 or 613A’’ and in-8 |
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| 163 | 163 | | serting ‘‘section 613 (determined without regard to 9 |
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| 164 | 164 | | subsection (d) thereof)’’. 10 |
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| 165 | 165 | | (8) Section 1202(e)(3)(D) of such Code is 11 |
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| 166 | 166 | | amended by striking ‘‘section 613 or 613A’’ and in-12 |
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| 167 | 167 | | serting ‘‘section 613 (determined without regard to 13 |
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| 168 | 168 | | subsection (d) thereof)’’. 14 |
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| 169 | 169 | | (9) Section 1367(a)(2) of such Code is amended 15 |
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| 170 | 170 | | by inserting ‘‘and’’ at the end of subparagraph (C), 16 |
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| 171 | 171 | | by striking ‘‘, and’’ at the end of subparagraph (D) 17 |
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| 172 | 172 | | and inserting a period, and by striking subparagraph 18 |
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| 173 | 173 | | (E). 19 |
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| 174 | 174 | | (10) Section 1446(c) of such Code is amended 20 |
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| 175 | 175 | | by striking paragraph (2) and by redesignating 21 |
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| 176 | 176 | | paragraph (3) as paragraph (2). 22 |
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| 177 | 177 | | (c) E |
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| 178 | 178 | | FFECTIVEDATE.—The amendments made by 23 |
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| 179 | 179 | | this section shall apply to property placed in service after 24 |
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| 180 | 180 | | December 31, 2024. 25 |
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| 182 | 182 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
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| 183 | 183 | | •HR 383 IH |
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| 184 | 184 | | SEC. 7. REPEAL OF DEDUCTION FOR TERTIARY 1 |
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| 185 | 185 | | INJECTANTS. 2 |
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| 186 | 186 | | (a) I |
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| 187 | 187 | | NGENERAL.—Part VI of subchapter B of chap-3 |
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| 188 | 188 | | ter 1 of the Internal Revenue Code of 1986 is amended 4 |
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| 189 | 189 | | by striking section 193 (and the table of sections of such 5 |
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| 190 | 190 | | subpart is amended by striking the item relating to such 6 |
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| 191 | 191 | | section). 7 |
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| 192 | 192 | | (b) E |
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| 193 | 193 | | FFECTIVEDATE.—The amendments made by 8 |
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| 194 | 194 | | this section shall apply to taxable years beginning after 9 |
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| 195 | 195 | | December 31, 2024. 10 |
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| 196 | 196 | | SEC. 8. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITA-11 |
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| 197 | 197 | | TIONS FOR WORKING INTERESTS IN OIL AND 12 |
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| 198 | 198 | | GAS PROPERTIES. 13 |
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| 199 | 199 | | (a) I |
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| 200 | 200 | | NGENERAL.—Section 469(c)(3) of the Internal 14 |
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| 201 | 201 | | Revenue Code of 1986 is amended by adding at the end 15 |
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| 202 | 202 | | the following new subparagraph: 16 |
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| 203 | 203 | | ‘‘(C) T |
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| 204 | 204 | | ERMINATION.—Subparagraph (A) 17 |
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| 205 | 205 | | shall not apply with respect to any taxable year 18 |
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| 206 | 206 | | beginning after the date of the enactment of 19 |
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| 207 | 207 | | this Act.’’. 20 |
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| 208 | 208 | | (b) E |
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| 209 | 209 | | FFECTIVEDATE.—The amendment made by 21 |
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| 210 | 210 | | this section shall apply to taxable years beginning after 22 |
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| 211 | 211 | | December 31, 2024. 23 |
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| 213 | 213 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 |
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| 214 | 214 | | •HR 383 IH |
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| 215 | 215 | | SEC. 9. DEDUCTION FOR QUALIFIED BUSINESS INCOME 1 |
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| 216 | 216 | | NOT ALLOWED WITH RESPECT TO OIL AND 2 |
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| 217 | 217 | | GAS ACTIVITIES. 3 |
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| 218 | 218 | | (a) I |
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| 219 | 219 | | NGENERAL.—Section 199A(c)(3)(B) of the In-4 |
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| 220 | 220 | | ternal Revenue Code of 1986 is amended by redesignating 5 |
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| 221 | 221 | | clause (vii) as clause (viii), and by inserting after clause 6 |
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| 222 | 222 | | (vi) the following new clause: 7 |
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| 223 | 223 | | ‘‘(vii) The production, refining, proc-8 |
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| 224 | 224 | | essing, transportation, or distribution of 9 |
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| 225 | 225 | | oil, gas, or any primary product thereof.’’. 10 |
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| 226 | 226 | | (b) E |
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| 227 | 227 | | FFECTIVEDATE.—The amendments made by 11 |
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| 228 | 228 | | this section shall apply to taxable years beginning after 12 |
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| 229 | 229 | | December 31, 2024. 13 |
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| 230 | 230 | | SEC. 10. PROHIBITION ON USING LAST-IN, FIRST-OUT AC-14 |
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| 231 | 231 | | COUNTING FOR OIL AND GAS COMPANIES. 15 |
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| 232 | 232 | | (a) I |
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| 233 | 233 | | NGENERAL.—Section 472 of the Internal Rev-16 |
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| 234 | 234 | | enue Code of 1986 is amended by adding at the end the 17 |
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| 235 | 235 | | following new subsection: 18 |
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| 236 | 236 | | ‘‘(h) O |
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| 237 | 237 | | IL ANDGASCOMPANIES.— 19 |
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| 238 | 238 | | ‘‘(1) I |
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| 239 | 239 | | N GENERAL.—Notwithstanding any other 20 |
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| 240 | 240 | | provision of this section, a major integrated oil com-21 |
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| 241 | 241 | | pany may not use the method provided in subsection 22 |
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| 242 | 242 | | (b) in inventorying of any goods. 23 |
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| 243 | 243 | | ‘‘(2) M |
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| 244 | 244 | | AJOR INTEGRATED OIL COMPANY .—For 24 |
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| 245 | 245 | | purposes of this subsection, the term ‘major inte-25 |
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| 247 | 247 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 |
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| 248 | 248 | | •HR 383 IH |
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| 249 | 249 | | grated oil company’ means, with respect to any tax-1 |
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| 250 | 250 | | able year, a producer of crude oil— 2 |
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| 251 | 251 | | ‘‘(A) which has an average daily worldwide 3 |
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| 252 | 252 | | production of crude oil of at least 500,000 bar-4 |
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| 253 | 253 | | rels for the taxable year, 5 |
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| 254 | 254 | | ‘‘(B) which has gross receipts in excess of 6 |
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| 255 | 255 | | $1,000,000,000 for the taxable year, and 7 |
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| 256 | 256 | | ‘‘(C) the average daily refinery runs of the 8 |
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| 257 | 257 | | taxpayer and related persons for the taxable 9 |
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| 258 | 258 | | year exceed 75,000 barrels. 10 |
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| 259 | 259 | | ‘‘(3) S |
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| 260 | 260 | | PECIAL RULES.— 11 |
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| 261 | 261 | | ‘‘(A) C |
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| 262 | 262 | | RUDE PRODUCTION AND GROSS RE -12 |
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| 263 | 263 | | CEIPTS.—For purposes of subparagraphs (A) 13 |
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| 264 | 264 | | and (B) of paragraph (2)— 14 |
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| 265 | 265 | | ‘‘(i) C |
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| 266 | 266 | | ONTROLLED GROUPS AND COM -15 |
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| 267 | 267 | | MON CONTROL.—All persons treated as a 16 |
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| 268 | 268 | | single employer under subsections (a) and 17 |
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| 269 | 269 | | (b) of section 52 shall be treated as 1 per-18 |
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| 270 | 270 | | son. 19 |
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| 271 | 271 | | ‘‘(ii) S |
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| 272 | 272 | | HORT TAXABLE YEARS .—In 20 |
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| 273 | 273 | | case of a short taxable year, the rule under 21 |
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| 274 | 274 | | section 448(c)(3)(B) shall apply. 22 |
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| 275 | 275 | | ‘‘(B) A |
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| 276 | 276 | | VERAGE DAILY REFINERY RUNS .— 23 |
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| 277 | 277 | | For purposes of paragraph (2)(C)— 24 |
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| 279 | 279 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 |
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| 280 | 280 | | •HR 383 IH |
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| 281 | 281 | | ‘‘(i) IN GENERAL.—The average daily 1 |
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| 282 | 282 | | refinery runs for any taxable year shall be 2 |
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| 283 | 283 | | determined by dividing the aggregate refin-3 |
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| 284 | 284 | | ery runs for the taxable year by the num-4 |
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| 285 | 285 | | ber of days in the taxable year. 5 |
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| 286 | 286 | | ‘‘(ii) R |
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| 287 | 287 | | ELATED PERSONS .—A person 6 |
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| 288 | 288 | | is a related person with respect to the tax-7 |
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| 289 | 289 | | payer if a significant ownership interest in 8 |
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| 290 | 290 | | either the taxpayer or such person is held 9 |
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| 291 | 291 | | by the other, or if a third person has a sig-10 |
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| 292 | 292 | | nificant ownership interest in both the tax-11 |
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| 293 | 293 | | payer and such person. 12 |
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| 294 | 294 | | ‘‘(iii) S |
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| 295 | 295 | | IGNIFICANT OWNERSHIP IN -13 |
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| 296 | 296 | | TEREST.—For purposes of clause (ii), the 14 |
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| 297 | 297 | | term ‘significant ownership interest’ 15 |
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| 298 | 298 | | means— 16 |
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| 299 | 299 | | ‘‘(I) with respect to any corpora-17 |
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| 300 | 300 | | tion, 15 percent or more in value of 18 |
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| 301 | 301 | | the outstanding stock of such corpora-19 |
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| 302 | 302 | | tion, 20 |
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| 303 | 303 | | ‘‘(II) with respect to a partner-21 |
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| 304 | 304 | | ship, 15 percent or more interest in 22 |
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| 305 | 305 | | the profits or capital of such partner-23 |
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| 306 | 306 | | ship, and 24 |
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| 308 | 308 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 |
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| 309 | 309 | | •HR 383 IH |
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| 310 | 310 | | ‘‘(III) with respect to an estate 1 |
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| 311 | 311 | | or trust, 15 percent or more of the 2 |
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| 312 | 312 | | beneficial interests in such estate or 3 |
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| 313 | 313 | | trust. 4 |
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| 314 | 314 | | For purposes of determining a significant 5 |
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| 315 | 315 | | ownership interest, an interest owned by or 6 |
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| 316 | 316 | | for a corporation, partnership, trust, or es-7 |
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| 317 | 317 | | tate shall be considered as owned directly 8 |
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| 318 | 318 | | both by itself and proportionately by its 9 |
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| 319 | 319 | | shareholders, partners, or beneficiaries, as 10 |
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| 320 | 320 | | the case may be.’’. 11 |
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| 321 | 321 | | (b) E |
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| 322 | 322 | | FFECTIVEDATE ANDSPECIALRULE.— 12 |
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| 323 | 323 | | (1) I |
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| 324 | 324 | | N GENERAL.—The amendment made by 13 |
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| 325 | 325 | | subsection (a) shall apply to taxable years beginning 14 |
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| 326 | 326 | | after December 31, 2024. 15 |
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| 327 | 327 | | (2) C |
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| 328 | 328 | | HANGE IN METHOD OF ACCOUNTING .—In 16 |
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| 329 | 329 | | the case of any taxpayer required by the amendment 17 |
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| 330 | 330 | | made by this section to change its method of ac-18 |
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| 331 | 331 | | counting for its first taxable year beginning after the 19 |
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| 332 | 332 | | date of the enactment of this Act— 20 |
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| 333 | 333 | | (A) such change shall be treated as initi-21 |
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| 334 | 334 | | ated by the taxpayer, 22 |
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| 335 | 335 | | (B) such change shall be treated as made 23 |
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| 336 | 336 | | with the consent of the Secretary of the Treas-24 |
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| 337 | 337 | | ury, and 25 |
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| 340 | 340 | | •HR 383 IH |
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| 341 | 341 | | (C) the net amount of the adjustments re-1 |
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| 342 | 342 | | quired to be taken into account by the taxpayer 2 |
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| 343 | 343 | | under section 481 of the Internal Revenue Code 3 |
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| 344 | 344 | | of 1986 shall be taken into account ratably over 4 |
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| 345 | 345 | | a period (not greater than 8 taxable years) be-5 |
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| 346 | 346 | | ginning with such first taxable year. 6 |
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| 347 | 347 | | SEC. 11. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 7 |
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| 348 | 348 | | APPLICABLE TO DUAL CAPACITY TAXPAYERS. 8 |
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| 349 | 349 | | (a) I |
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| 350 | 350 | | NGENERAL.—Section 901 of the Internal Rev-9 |
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| 351 | 351 | | enue Code of 1986 is amended by redesignating subsection 10 |
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| 352 | 352 | | (n) as subsection (o) and by inserting after subsection (m) 11 |
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| 353 | 353 | | the following new subsection: 12 |
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| 354 | 354 | | ‘‘(n) S |
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| 355 | 355 | | PECIALRULESRELATING TODUALCAPACITY 13 |
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| 356 | 356 | | T |
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| 357 | 357 | | AXPAYERS.— 14 |
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| 358 | 358 | | ‘‘(1) G |
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| 359 | 359 | | ENERAL RULE.—Notwithstanding any 15 |
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| 360 | 360 | | other provision of this chapter, any amount paid or 16 |
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| 361 | 361 | | accrued by a dual capacity taxpayer to a foreign 17 |
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| 362 | 362 | | country or possession of the United States for any 18 |
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| 363 | 363 | | period with respect to combined foreign oil and gas 19 |
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| 364 | 364 | | income (as defined in section 907(b)(1)) shall not be 20 |
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| 365 | 365 | | considered a tax to the extent such amount exceeds 21 |
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| 366 | 366 | | the amount (determined in accordance with regula-22 |
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| 367 | 367 | | tions) which would have been required to be paid if 23 |
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| 368 | 368 | | the taxpayer were not a dual capacity taxpayer. 24 |
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| 371 | 371 | | •HR 383 IH |
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| 372 | 372 | | ‘‘(2) DUAL CAPACITY TAXPAYER .—For pur-1 |
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| 373 | 373 | | poses of this subsection, the term ‘dual capacity tax-2 |
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| 374 | 374 | | payer’ means, with respect to any foreign country or 3 |
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| 375 | 375 | | possession of the United States, a person who— 4 |
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| 376 | 376 | | ‘‘(A) is subject to a levy of such country or 5 |
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| 377 | 377 | | possession, and 6 |
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| 378 | 378 | | ‘‘(B) receives (or will receive) directly or 7 |
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| 379 | 379 | | indirectly a specific economic benefit (as deter-8 |
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| 380 | 380 | | mined in accordance with regulations) from 9 |
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| 381 | 381 | | such country or possession.’’. 10 |
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| 382 | 382 | | (b) E |
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| 383 | 383 | | FFECTIVEDATE.— 11 |
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| 384 | 384 | | (1) I |
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| 385 | 385 | | N GENERAL.—The amendments made by 12 |
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| 386 | 386 | | this section shall apply to taxes paid or accrued in 13 |
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| 387 | 387 | | taxable years beginning after December 31, 2024. 14 |
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| 388 | 388 | | (2) C |
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| 389 | 389 | | ONTRARY TREATY OBLIGATIONS 15 |
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| 390 | 390 | | UPHELD.—The amendments made by this section 16 |
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| 391 | 391 | | shall not apply to the extent contrary to any treaty 17 |
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| 392 | 392 | | obligation of the United States. 18 |
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| 393 | 393 | | SEC. 12. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR 19 |
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| 394 | 394 | | EXCISE TAX PURPOSES. 20 |
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| 395 | 395 | | (a) I |
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| 396 | 396 | | NGENERAL.—Paragraph (1) of section 4612(a) 21 |
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| 397 | 397 | | of the Internal Revenue Code of 1986 is amended to read 22 |
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| 398 | 398 | | as follows: 23 |
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| 399 | 399 | | ‘‘(1) C |
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| 400 | 400 | | RUDE OIL.—The term ‘crude oil’ includes 24 |
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| 401 | 401 | | crude oil condensates, natural gasoline, any bitumen 25 |
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| 404 | 404 | | •HR 383 IH |
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| 405 | 405 | | or bituminous mixture, any oil derived from a bitu-1 |
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| 406 | 406 | | men or bituminous mixture (including oil derived 2 |
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| 407 | 407 | | from tar sands), and any oil derived from kerogen- 3 |
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| 408 | 408 | | bearing sources (including oil derived from oil 4 |
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| 409 | 409 | | shale).’’. 5 |
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| 410 | 410 | | (b) R |
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| 411 | 411 | | EGULATORYAUTHORITYTOADDRESSOTHER 6 |
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| 412 | 412 | | T |
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| 413 | 413 | | YPES OFCRUDEOIL ANDPETROLEUMPRODUCTS.— 7 |
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| 414 | 414 | | Subsection (a) of section 4612 of such Code is amended 8 |
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| 415 | 415 | | by adding at the end the following new paragraph: 9 |
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| 416 | 416 | | ‘‘(10) R |
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| 417 | 417 | | EGULATORY AUTHORITY TO ADDRESS 10 |
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| 418 | 418 | | OTHER TYPES OF CRUDE OIL AND PETROLEUM 11 |
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| 419 | 419 | | PRODUCTS.—Under such regulations as the Sec-12 |
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| 420 | 420 | | retary may prescribe, the Secretary may include as 13 |
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| 421 | 421 | | crude oil or as a petroleum product subject to tax 14 |
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| 422 | 422 | | under section 4611, any fuel feedstock or finished 15 |
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| 423 | 423 | | fuel product customarily transported by pipeline, 16 |
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| 424 | 424 | | vessel, railcar, or tanker truck if the Secretary deter-17 |
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| 425 | 425 | | mines that— 18 |
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| 426 | 426 | | ‘‘(A) the classification of such fuel feed-19 |
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| 427 | 427 | | stock or finished fuel product is consistent with 20 |
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| 428 | 428 | | the definition of oil under the Oil Pollution Act 21 |
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| 429 | 429 | | of 1990, and 22 |
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| 430 | 430 | | ‘‘(B) such fuel feedstock or finished fuel 23 |
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| 431 | 431 | | product is produced in sufficient commercial 24 |
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| 434 | 434 | | •HR 383 IH |
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| 435 | 435 | | quantities as to pose a significant risk of haz-1 |
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| 436 | 436 | | ard in the event of a discharge.’’. 2 |
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| 437 | 437 | | (c) T |
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| 438 | 438 | | ECHNICALAMENDMENT.—Paragraph (2) of sec-3 |
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| 439 | 439 | | tion 4612(a) of such Code is amended by striking ‘‘from 4 |
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| 440 | 440 | | a well located’’. 5 |
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| 441 | 441 | | (d) E |
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| 442 | 442 | | FFECTIVEDATE.—The amendments made by 6 |
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| 443 | 443 | | this section shall take effect on the date of the enactment 7 |
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| 444 | 444 | | of this Act. 8 |
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| 445 | 445 | | Æ |
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