S.Amdt. 3636

1. Adds TITLE VIII--OIL COMPANY ACOUNTABILITY on page 253, between lines 19 and 20

   Adds a titlePrinted page

   Inserted: TITLE VIII--OIL COMPANY ACOUNTABILITY

   Inserted: SEC. 8001. ENERGY TAX REBATE.

   Inserted: (a) In General.--Subchapter B of chapter 65 of the Internal Revenue Code of 1986 (relating to rules of special application in the case of abatements, credits, and refunds) is amended by adding at the end the following new section:

   Inserted: "SEC. 6430. ENERGY TAX REBATE.

   Inserted: "(a) General Rule.--Except as otherwise provided in this section, each individual shall be treated as having made a payment against the tax imposed by chapter 1 for the taxable year beginning in 2006 in an amount equal to $500.

   Inserted: "(b) Remittance of Payment.--The Secretary shall remit to each taxpayer the payment described in subsection (a) not later than 30 days after the date of the enactment of this section.

   Inserted: "(c) Certain Persons Not Eligible.--This section shall not apply to--

   Inserted: "(1) any individual who did not have any adjusted gross income for the preceding taxable year or whose adjusted gross income for such preceding taxable year exceeded $120,000,

   Inserted: "(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for the taxable year beginning in 2006,

   Inserted: "(3) any estate or trust, or

   Inserted: "(4) any nonresident alien individual.".

   Inserted: (b) Conforming Amendment.--Section 1324(b)(2) of title 31, United States Code, is amended by inserting before the period ", or from section 6430 of such Code".

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   Inserted: (c) Clerical Amendment.--The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

   Inserted: "Sec. 6430. Energy tax rebate.".

   Inserted: (d) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act.

   Inserted: SEC. 8002. REVALUATION OF LIFO INVENTORIES OF LARGE INTEGRATED OIL COMPANIES.

   Inserted: (a) General Rule.--Notwithstanding any other provision of law, if a taxpayer is an applicable integrated oil company for its last taxable year ending in calendar year 2005, the taxpayer shall--

   Inserted: (1) increase, effective as of the close of such taxable year, the value of each historic LIFO layer of inventories of crude oil, natural gas, or any other petroleum product (within the meaning of section 4611) by the layer adjustment amount, and

   Inserted: (2) decrease its cost of goods sold for such taxable year by the aggregate amount of the increases under paragraph (1).

   Inserted: If the aggregate amount of the increases under paragraph (1) exceed the taxpayer's cost of goods sold for such taxable year, the taxpayer's gross income for such taxable year shall be increased by the amount of such excess.

   Inserted: (b) Layer Adjustment Amount.--For purposes of this section--

   Inserted: (1) In general.--The term "layer adjustment amount" means, with respect to any historic LIFO layer, the product of--

   Inserted: (A) $18.75, and

   Inserted: (B) the number of barrels of crude oil (or in the case of natural gas or other petroleum products, the number of barrel-of-oil equivalents) represented by the layer.

   Inserted: (2) Barrel-of-oil equivalent.--The term "barrel-of-oil equivalent" has the meaning given such term by section 29(d)(5) (as in effect before its redesignation by the Energy Tax Incentives Act of 2005).

   Inserted: (c) Application of Requirement.--

   Inserted: (1) No change in method of accounting.--Any adjustment required by this section shall not be treated as a change in method of accounting.

   Inserted: (2) Underpayments of estimated tax.--No addition to the tax shall be made under section 6655 of the Internal Revenue Code of 1986 (relating to failure by corporation to pay estimated tax) with respect to any underpayment of an installment required to be paid with respect to the taxable year described in subsection (a) to the extent such underpayment was created or increased by this section.

   Inserted: (d) Applicable Integrated Oil Company.--For purposes of this section, the term "applicable integrated oil company" means an integrated oil company (as defined in section 291(b)(4) of the Internal Revenue Code of 1986) which has an average daily worldwide production of crude oil of at least 500,000 barrels for the taxable year and which had gross receipts in excess of $1,000,000,000 for its last taxable year ending during calendar year 2005. For purposes of this subsection all persons treated as a single employer under subsections (a) and (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as 1 person and, in the case of a short taxable year, the rule under section 448(c)(3)(B) shall apply.

   Inserted: SEC. 8003. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO LARGE INTEGRATED OIL COMPANIES WHICH ARE DUAL CAPACITY TAXPAYERS.

   Inserted: (a) In General.--Section 901 of the Internal Revenue Code of 1986 (relating to credit for taxes of foreign countries and of possessions of the United States) is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (l) the following new subsection:

   Inserted: "(m) Special Rules Relating to Large Integrated Oil Companies Which Are Dual Capacity Taxpayers.--

   Inserted: "(1) General rule.--Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a large integrated oil company to a foreign country or possession of the United States for any period shall not be considered a tax--

   Inserted: "(A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or

   Inserted: "(B) to the extent such amount exceeds the amount (determined in accordance with regulations) which--

   Inserted: "(i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or

   Inserted: "(ii) would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.

   Inserted: 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).

   Inserted: "(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--

   Inserted: "(A) is subject to a levy of such country or possession, and

   Inserted: "(B) receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.

   Inserted: "(3) Generally applicable income tax.--For purposes of this subsection--

   Inserted: "(A) In general.--The term 'generally applicable income tax' 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.

   Inserted: "(B) Exceptions.--Such term shall not include a tax unless it has substantial application, by its terms and in practice, to--

   Inserted: "(i) persons who are not dual capacity taxpayers, and

   Inserted: "(ii) persons who are citizens or residents of the foreign country or possession.

   Inserted: "(4) Large integrated oil company.--For purposes of this subsection, the term 'large integrated oil company' means, with respect to any taxable year, an integrated oil company (as defined in section 291(b)(4)) which--

   Inserted: "(A) had gross receipts in excess of $1,000,000,000 for such taxable year, and

   Inserted: "(B) has an average daily worldwide production of crude oil of at least 500,000 barrels for such taxable year."

   Inserted: (b) Effective Date.--

   Inserted: (1) In general.--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.

   Inserted: (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.

   Inserted: SEC. 8004. NONAPPLICATION OF AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES TO LARGE INTEGRATED OIL COMPANIES.

   Inserted: (a) In General.--Section 167(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

   Inserted: "(5) Nonapplication to large integrated oil companies.--This subsection shall not apply to any expenses paid or incurred during any taxable year by any taxpayer which is an integrated oil company (as defined in section 291(b)(4) of the Internal Revenue Code of 1986) which has gross receipts in excess of $500,000,000 for such taxable year. For purposes of this subsection all persons treated as a single employer under subsections (a) and (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as 1 person and, in the case of a short taxable year, the rule under section 448(c)(3)(B) shall apply.".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

   Original wording

   On page 253, between lines 19 and 20, insert the following:

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As printed