II
111th CONGRESS
1st Session
S. 1087
IN THE SENATE OF THE UNITED STATES
May 20, 2009
Mr. Kerry 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 repeal certain tax incentives related to oil and gas.
Short title
This Act may be cited as
the Energy Fairness for America
Act
.
Denial of deduction for income attributable to domestic production of oil, natural gas, or primary products thereof
In general
Subparagraph (B) of
section
199(c)(4) of the Internal Revenue Code of 1986 (relating to
exceptions) is amended by striking or
at the end of clause (ii),
by striking the period at the end of clause (iii) and inserting ,
or
, and by inserting after clause (iii) the following new
clause:
the production, refining, processing, transportation, or distribution of oil, natural gas, or any primary product thereof.
.
Primary product
Section 199(c)(4)(B) of such Code is amended by adding at the end the following flush sentence:
For purposes of clause (iv), the term primary product has the same meaning as when used in section 927(a)(2)(C), as in effect before its repeal.
.
Conforming amendments
Section 199(c)(4) of such Code is amended—
in subparagraph (A)(i)(III) by striking
electricity, natural gas,
and inserting
electricity
, and
in subparagraph (B)(ii) by striking
electricity, natural gas,
and inserting
electricity
.
Section 199(d) of such Code is amended by striking paragraph (9) and by redesignating paragraph (10) as paragraph (9).
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Termination of credit for producing oil and gas from marginal wells
In general
Section 45I of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Termination
This section shall not apply to any taxable year beginning after the date of the enactment of this subsection.
.
Effective date
The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Repeal of exception from passive activity rules for working interests in oil or gas property
In general
Section 469(c) of the Internal Revenue Code of 1986 is amended by striking paragraph (3).
Conforming amendment
Paragraph (4) of section 469(c) of such Code is amended—
by striking
Paragraphs (2) and (3)
and inserting Paragraph
(2)
, and
by striking
paragraphs (2) and
(3)
in the heading and inserting
paragraph
(2)
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
7-year amortization of geological and geophysical expenditures for all oil and gas exploration and development
In general
Section 167(h) of the Internal Revenue Code of 1986 is amended—
by striking
24-month period
each place it appears in paragraphs (1) and (4)
and inserting 7-year period
, and
by striking paragraph (5).
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Termination of deduction for intangible drilling and development costs
In general
Section 263(c) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new sentence: This
subsection shall not apply to any taxable year beginning after the date of the
enactment of this sentence.
.
Conforming amendments
Paragraphs (2) and (3) of section 291(b) of
such Code are each amended by striking section 263(c), 616(a),
and inserting section 616(a)
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Termination of percentage depletion allowance for oil and gas wells
In general
Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Termination
For purposes of any taxable year beginning after the date of the enactment of this subsection, the allowance for percentage depletion shall be zero.
.
Effective date
The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.