I
113th CONGRESS
1st Session
H. R. 2956
IN THE HOUSE OF REPRESENTATIVES
August 1, 2013
Mr. Murphy of Florida (for himself, Mr. Blumenauer, Ms. Esty, and Mr. Barber) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Natural Resources, 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 eliminate unnecessary oil tax credits and subsidies for major oil companies to reduce the national debt.
Short title
This Act may be cited as the
End Welfare for Big Oil Act of
2013
.
Repeal of oil and gas subsidies
Close big oil tax loopholes
Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers
In general
Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:
Special rules relating to major integrated oil companies which are dual capacity taxpayers
General rule
Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States for any period shall not be considered a tax—
if, for such period, the foreign country or possession does not impose a generally applicable income tax, or
to the extent such amount exceeds the amount (determined in accordance with regulations) which—
is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or
would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.
Dual capacity taxpayer
For purposes of this subsection, the term dual capacity taxpayer means, with respect to any foreign country or possession of the United States, a person who—
is subject to a levy of such country or possession, and
receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.
Generally applicable income tax
For purposes of this subsection—
In general
The term generally applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.
Exceptions
Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—
persons who are not dual capacity taxpayers, and
persons who are citizens or residents of the foreign country or possession.
.
Effective Date
In general
The amendments made by this section shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.
Contrary treaty obligations upheld
The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.
Limitation on section 199 deduction attributable to oil, natural gas, or primary products thereof
Denial of deduction
Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Special rule for certain oil and gas income
In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term domestic production gross receipts shall not include gross receipts from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof.
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2013.
Limitation on 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 amounts paid or incurred by
a taxpayer in any taxable year in which such taxpayer is a major integrated oil
company (as defined in section 167(h)(5)(B)).
.
Effective date
The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2013.
Limitation on 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:
Application with respect to major integrated oil companies
In the case of any taxable year in which the taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)), the allowance for percentage depletion shall be zero.
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2013.
Limitation on deduction for tertiary injectants
In general
Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Application with respect to major integrated oil companies
This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).
.
Effective date
The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2013.
Outer Continental Shelf oil and natural gas
Repeal of outer Continental Shelf deep water and deep gas royalty relief
In general
Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
Limitation on application
The repeal under subsection (a) shall not affect the application of the repealed sections with respect to any lease sale for which a notice of sale is published before the date of enactment of this Act.
Budgetary effects
Deficit reduction
The net amount of any savings realized as a result of the enactment of this Act and the amendments made by this Act (after any expenditures authorized by this Act and the amendments made by this Act) shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.