I
112th CONGRESS
1st Session
H. R. 1959
IN THE HOUSE OF REPRESENTATIVES
May 24, 2011
Mr. Tonko introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Science, Space, and Technology, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To deny certain tax benefits to oil and gas companies and to invest the savings in clean energy programs.
Short title
This Act may be cited as the
Pain at the Pump
Act
.
Denial of certain tax benefits to oil and gas companies
Repeal of enhanced oil recovery credit
In general
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 43 (and the table of sections of such subpart is amended by striking the item relating to such section).
Conforming amendments
Subsection (b) of section 38 of such Code is amended by striking paragraph (6) and redesignating paragraphs (7) through (36) as paragraphs (6) through (35), respectively.
Paragraph (7) of section 45Q(d) of such Code is amended to read as follows:
Inflation adjustment
In general
In the case of any taxable year beginning in a calendar year after 2009, there shall be substituted for each dollar amount contained in subsection (a) an amount equal to the product of—
such dollar amount, multiplied by
the inflation adjustment factor for such calendar year.
Inflation adjustment factor
The term
inflation adjustment factor
means, with respect to any calendar
year, a fraction the numerator of which is the GNP implicit price deflator for
the preceding calendar year and the denominator of which is the GNP implicit
price deflator for 2008. For purposes of the preceding sentence, the term
GNP implicit price deflator
means the first revision of the
implicit price deflator for the gross national product as computed and
published by the Secretary of Commerce. Not later than April 1 of any calendar
year, the Secretary shall publish the inflation adjustment factor for the
preceding calendar year.
.
Subsection (c) of section 196 of such Code is amended by striking paragraph (5) and redesignating paragraphs (6) through (14) as paragraphs (5) through (13), respectively.
Effective date
In general
Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Continuation of basis reductions
Paragraph (2) of section 43(d) of the Internal Revenue Code of 1986 (as in effect before its repeal by this section) shall continue to apply with respect to credits determined for taxable years beginning on or before December 31, 2011.
Repeal of credit for producing oil and gas from marginal wells
In general
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 45I (and the table of sections of such subpart is amended by striking the item relating to such section).
Conforming amendment
Subsection (b) of section 38 of such Code, as amended by section 101, is amended by striking paragraph (18) and redesignating paragraphs (19) through (35) as paragraphs (18) through (34), respectively.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Repeal of expensing of intangible drilling and development costs
In general
Section 263 of the Internal Revenue Code of 1986 is amended by striking subsection (c).
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Repeal of deduction for tertiary injectants
In general
Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 193 (and the table of sections of such subpart is amended by striking the item relating to such section).
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Repeal of exception to passive loss limitations for working interests in oil and gas properties
In general
Paragraph (3) of section 469(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Termination
Subparagraph (A) shall not apply with respect to any taxable year beginning after the date of the enactment of this Act.
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Repeal of percentage depletion for oil and gas wells
In general
Part I of subchapter I of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 613A (and the table of sections of such part is amended by striking the item relating to such section).
Conforming amendments
Subsection (d) of section 45H of such Code is amended—
by striking
For purposes this section
and inserting the following:
In general
For purposes of this section
,
by striking
(within the meaning of section 613A(d)(3))
, and
by adding at the end the following new paragraph:
Related person
For purposes of this
subsection, a person is a related person with respect to the taxpayer if a
significant ownership interest in either the taxpayer or such person is held by
the other, or if a third person has a significant ownership interest in both
the taxpayer and such person. For purposes of the preceding sentence, the term
significant ownership interest
means—
with respect to any corporation, 5 percent or more in value of the outstanding stock of such corporation,
with respect to a partnership, 5 percent or more interest in the profits or capital of such partnership, and
with respect to an estate or trust, 5 percent or more of the beneficial interests in such estate or trust.
.
Subparagraph (F) of section 56(g)(4) of such Code is amended to read as follows:
Depletion
The allowance for depletion with respect to any property placed in service in a taxable year beginning after December 31, 1989, shall be cost depletion determined under section 611.
.
Paragraph (1) of section 57(a) of such Code is amended by striking the last sentence.
Paragraph (4) of
section 291(b) of such Code is amended by adding at the end the following:
Any reference in the preceding sentence to section 613A shall be treated
as a reference to such section as in effect prior to the date of the enactment
of the Pain at the Pump
Act.
.
Subsection (d) of
section 613 of such Code is amended by striking Except as provided in
section 613A, in the case of
and inserting In the case
of
.
Subsection (e) of section 613 of such Code is amended—
by striking
or section 613A
in paragraph (2), and
by striking
any amount described in section 613A(d)(5)
in paragraph (3) and
inserting any lease bonus, advance royalty, or other amount payable
without regard to production from property
.
Subsection (a) of section 705 of such Code is amended—
by inserting
and
at the end of paragraph (1)(C),
by striking
; and
at the end of paragraph (2)(B) and inserting a period,
and
by striking paragraph (3).
Section 776 of such Code is amended by striking subsection (a) and by redesignating subsection (b) as subsection (a).
Subparagraph (D)
of section 954(g)(2) of such Code is amended by inserting (as in effect
before the date of the enactment of the Pain
at the Pump Act)
after section
613A
.
Subparagraph (C) of section 993(c)(2) of
such Code is amended by striking section 613 or 613A
and
inserting section 613 (determined without regard to subsection (d)
thereof)
.
Subparagraph (D) of section 1202(e)(3) of
such Code is amended by striking section 613 or 613A
and
inserting section 613 (determined without regard to subsection (d)
thereof)
.
Paragraph (2) of
section 1367(a) of such Code is amended by inserting and
at the
end of subparagraph (C), by striking , and
at the end of
subparagraph (D) and inserting a period, and by striking subparagraph
(E).
Subsection (c) of section 1446 of such Code is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2011.
Deduction for income attributable to domestic production activities not allowed with respect to oil and gas activities
In general
Subparagraph (B) of
section 199(c)(4) of the Internal Revenue Code of 1986 is amended by striking
and
at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting , and
, and by inserting after
clause (iii) the following new clause:
the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof.
.
Conforming amendment
Subsection (d) of section 199 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 December 31, 2011.
7-year amortization for geological and geophysical expenditures
In general
Subsection (h) of section 167 of the Internal Revenue Code of 1986 is amended—
by striking
24-month
in paragraphs (1) and (4) and inserting
7-year
, and
by striking paragraph (5).
Effective date
The amendments made by this section shall apply to expenses paid or incurred after December 31, 2011.
Investment in clean energy programs
Investment in clean energy programs
It is the sense of Congress that the increase in revenue to the Federal Government resulting from the provisions of, and amendments made by, title I should be used to make additional expenditures in the following areas and programs:
Alternative fuel technology programs.
Advanced battery development programs.
Programs of the Advanced Research Projects Agency—Energy.
Research and development of clean energy technologies.
Clean energy loan guarantee programs.
Programs of the Office of Energy Efficiency and Renewable Energy of the Department of Energy.
Weatherization Assistance Program.
State Energy Program.
Low Income Home Energy Assistance Program.
Distributed generation and turbine research and development.