S.Amdt. 5784

SA 5784. Mr. WYDEN submitted an amendment intended to be proposed by
him to the bill S. 2, to provide for reconciliation pursuant to title
II of S. Con. Res. 33; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ___. INCREASE IN TAX ON REPURCHASE OF CORPORATE STOCK BY
LARGE OIL AND GAS COMPANIES.

Section 4501 of the Internal Revenue Code of 1986 is
amended by redesignating subsection (f) as subsection (g) and
by inserting after subsection (e) the following new
subsection:
``(f) Application to Large Oil and Gas Companies.--
``(1) In general.--In the case of a covered corporation
which is an applicable corporation for the taxable year,
subsection (a) shall be applied by substituting `25 percent'
for `1 percent'.
``(2) Applicable corporation.--For purposes of this
subsection--
``(A) In general.--The term `applicable corporation' means,
with respect to any taxable year, any corporation if--
``(i) the average annual gross receipts of such corporation
for the 3-taxable-year period ending with the taxable year
which precedes such taxable year equals or exceeds
$1,000,000,000, and
``(ii) such corporation is primarily engaged in 1 or more
oil or natural gas trades or businesses during the taxable
year.
For purposes of clause (i), rules similar to the rules of
paragraphs (2) and (3) of section 448(c) shall apply.
``(B) Oil or natural gas trade or business.--The term `oil
or natural gas trade or business' means any trade or business
that consists of one or more of the following:
``(i) The production of oil or natural gas.
``(ii) The refining of oil or natural gas.
``(iii) The processing of oil or natural gas.
``(iv) The transportation of oil or natural gas.
``(v) The distribution of oil or natural gas.
``(3) Application of subsection.--
``(A) In general.--This subsection shall apply to
repurchases of stock made--
``(i) after the date of the enactment of this subsection,
and
``(ii) before the first day of the first month beginning
after the gasoline price requirement of subparagraph (B) is
met.
``(B) Gasoline price requirement.--The gasoline price
requirement of this subparagraph is met if the weekly retail
price of all formulations of regular gasoline (as determined
by the Energy Information Administration of the Department of
Energy) is less than $2.937 per gallon for each week
occurring during any 5-consecutive week period ending after
the date of the enactment of this subsection.
``(C) Special rule.--For purposes of applying subsection
(c)(3) to any taxable year which includes a period to which
this subsection applies and a period to which this subsection
does not apply, the amount of the reduction determined under
such subsection for such taxable year shall be applied--
``(i) by reducing stock repurchased during the period this
subsection does not apply in the amount which bears the same
ratio to the total amount of the reduction so determined for
such taxable year as--

``(I) the number of days in the taxable year during such
period, bears to
``(II) the total number of days in such taxable year, and

``(ii) by reducing stock repurchased during the period this
subsection applies by the excess (if any) of the total amount
of the reduction so determined for such taxable year over the
amount of the reduction determined under clause (i).''.
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