II
110th CONGRESS
1st Session
S. 1591
IN THE SENATE OF THE UNITED STATES
June 12, 2007
Mr. Hatch introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to allow full expensing for the cost of qualified refinery property in the year in which the property is placed in service, and to classify petroleum refining property as 5-year property for purposes of depreciation.
Short title
This Act may be cited as the
Refinery Investment Tax Assistance Act
of 2007
.
Full expensing for qualified refinery property
In general
Subsection (a) of
section 179C of the Internal Revenue Code of 1986 (relating to election to
expense certain refineries) is amended by striking 50 percent
of
.
Effective date
The amendment made by subsection (a) shall take effect as if included in section 1323 of the Energy Policy Act of 2005.
Petroleum refining property treated as 5-year property
In general
Subparagraph (B) of section 168(e)(3) of the Internal
Revenue Code of 1986 (relating to 5-year property) is amended by striking
and
at the end of clause (v), by striking the period at the end
of clause (vi)(III) and inserting , and
, and by adding at the
end the following new clause:
any petroleum refining property.
.
Petroleum refining property
Section 168(i) of such Code is amended by adding at the end the following new paragraph:
Petroleum refining property
In general
The term petroleum refining property means any asset for petroleum refining, including assets used for the distillation, fractionation, and catalytic cracking of crude petroleum into gasoline and its other components.
Asset must meet environmental laws
Such term shall not include any property which does not meet all applicable environmental laws in effect on the date such property was placed in service. For purposes of the preceding sentence, a waiver under the Clean Air Act shall not be taken into account in determining whether the applicable environmental laws have been met.
Special rule for mergers and acquisitions
Such term shall not include any property with respect to which a deduction was taken under subsection (e)(3)(B) by any other taxpayer in any preceding year.
.
Effective date
In general
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Exception
The amendments made by this section shall not apply to any property with respect to which the taxpayer has entered into a binding contract for the construction thereof on or before the date of the enactment of this Act.