H.R. 454 – Reading Mode

109th CONGRESS

1st Session

H. R. 454

IN THE HOUSE OF REPRESENTATIVES

February 1, 2005

Mr. Cole of Oklahoma (for himself, Mr. Wilson of South Carolina, Mr. Jindal, Mr. Lucas, Mr. Sullivan, Mr. Terry, Mr. Boren, Mr. Pearce, Mr. Peterson of Pennsylvania, Mr. Culberson, Mr. Nunes, Mr. Renzi, Mr. Alexander, Mr. Thornberry, Mr. Baker, Mr. Rehberg, and Mrs. Capito) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide that the credit for producing fuel from a nonconventional source shall apply to gas produced onshore from a formation more than 15,000 feet deep.

Short title

This Act may be cited as the Natural Gas Production Act of 2005.

Credit for producing fuel from nonconventional source to apply to gas produced onshore from formations more than 15,000 feet deep

(a)

In general

Subparagraph (B) of section 29(c)(1) of the Internal Revenue Code of 1986 (defining qualified fuels) is amended by striking or at the end of clause (i), by striking and at the end of clause (ii) and inserting or, and by inserting after clause (ii) the following new clause:

(iii)

an onshore well from a formation more than 15,000 feet deep, and

(b)

Eligible wells

Section 29 of such Code is amended by adding at the end the following new subsection:

(h)

Eligible deep gas wells

In the case of a well producing qualified fuel described in subsection (B)(iii)—

(1)

for purposes of subsection (f)(1)(A), such well shall be treated as drilled before January 1, 1993, if such well is drilled after the date of the enactment of this subsection, and

(2)

subsection (f)(2) shall not apply.

(c)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.