[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 926 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 926
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 27, 2005
Mr. Inhofe (for himself, Mr. Vitter, and Mr. Enzi) introduced the
following bill; which was read twice and referred to the Committee on
Finance
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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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Natural Gas Production Act of
2005''.
SEC. 2. 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.
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