To amend the Federal Election Campaign Act of 1971 to limit the influence of nonparty multicandidate political committees in elections for Federal office, to amend the Internal Revenue Code of 1986 to provide for an income tax credit for contributions to candidates for the House of Representatives, and for other purposes.

Summary: Amends the Federal Election Campaign Act of 1971 to decrease the limitation on contributions to candidates for Federal office by a multicandidate political committee (PAC).  Prohibits a nonparty committee from acting as an intermediary or conduit (to facilitate bundling) with respect to such contributions. 
Prohibits a candidate for Federal office from establishing, maintaining, financing, or controlling a political committee (leadership committee) other than the principal campaign committee. 
Amends the Internal Revenue Code to allow a tax credit for congressional campaign contributions to candidates for the House of Representatives. 
Amends the Internal Revenue Code to repeal the minimum tax deduction based on intangible drilling cost preferences.

SECTION 1. REDUCTION IN LIMITATION AMOUNT APPLICABLE TO NONPARTY 
              MULTICANDIDATE POLITICAL COMMITTEE CONTRIBUTIONS IN 
              ELECTIONS FOR FEDERAL OFFICE.

    Section 315(a)(2)(A) of the Federal Election Campaign Act of 1971 
(2 U.S.C. 441a(a)(2)(A)) is amended by inserting after ``$5,000'' the 
following: ``, except that, in the case of a nonparty multicandidate 
political committee, the limitation under this subparagraph shall be 
$1,000''.

SEC. 2. PROHIBITION OF NONPARTY MULTICANDIDATE POLITICAL COMMITTEE 
              BUNDLING OF CONTRIBUTIONS TO CANDIDATES.

    Section 315 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
441a) is amended by adding at the end the following new subsection:
    ``(i) No nonparty multicandidate political committee may act as an 
intermediary or conduit with respect to a contribution to a candidate 
for Federal office.''.

SEC. 3. PROHIBITION OF LEADERSHIP COMMITTEES.

    Section 302 of the Federal Election Campaign Act of 1971 (2 U.S.C. 
432) is amended by adding at the end the following new subsection:
    ``(j) A candidate for Federal office may not establish, maintain, 
finance, or control a political committee, other than the principal 
campaign committee of the candidate.''.

SEC. 4. INCOME TAX CREDIT FOR CONTRIBUTIONS TO CANDIDATES FOR THE HOUSE 
              OF REPRESENTATIVES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting before section 25 the 
following new section:

``SEC. 24. CONTRIBUTIONS TO CANDIDATES FOR THE HOUSE OF 
              REPRESENTATIVES.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed, subject to the limitations in subsection (b), as a credit 
against the tax imposed by this chapter for the taxable year, an amount 
equal to all local congressional political contributions for which 
payment is made by the taxpayer within the taxable year.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by subsection (a) 
        for a taxable year shall not exceed $100 ($200 in the case of a 
        joint return).
            ``(2) Verification.--A credit shall be allowed by 
        subsection (a) with respect to any local congressional 
        political contribution only if the contribution is verified in 
        the manner prescribed by the Secretary in regulations.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Local congressional political contribution.--The term 
        `local congressional political contribution' means a 
        contribution or gift of money to--
                    ``(A) a local congressional candidate, or
                    ``(B) a committee, association, or organization 
                (whether or not incorporated) organized and operated 
                exclusively for the purpose of influencing (or 
                attempting to influence) the nomination or election of 
                a local congressional candidate,
        for use to further the candidacy of such candidate for 
        nomination or election to the House of Representatives.
            ``(2) Local congressional candidate.--The term `local 
        congressional candidate' means a candidate in any primary, 
        general, or special election for nomination or election to the 
        House of Representatives for the congressional district in 
        which the principal residence of the taxpayer is located.
            ``(3) Candidate.--The term `candidate' means an individual 
        who--
                    ``(A) publicly announces before the close of the 
                calendar year following the calendar year in which the 
                contribution or gift is made that the individual is a 
                candidate for nomination or election to the House of 
                Representatives, and
                    ``(B) meets the qualification prescribed by law to 
                hold such office.
            ``(4) Principal residence.--The term `principal residence' 
        has the same meaning as when used in section 1034.
    ``(d) Cross Reference.--

                              ``For disallowance of credits to estates 
and trusts, see section 642(j).''
    (b) Conforming Amendments.--
            (1) Section 642 of such Code (relating to special rules for 
        credits and deductions) is amended by adding at the end the 
        following new subsection:
    ``(j) Political Contributions.--An estate or trust shall not be 
allowed the credit for contributions to candidates for the House of 
Representatives provided by section 24.''
            (2) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        before the item relating to section 25 the following new item.

                              ``Sec. 24. Contributions to candidates 
                                        for the House of 
                                        Representatives.''
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid after the date of the enactment of this Act.

SEC. 5. REPEAL OF CERTAIN CHANGES IN THE MINIMUM TAX RELATING TO 
              DEPLETION AND INTANGIBLE DRILLING COSTS.

    (a) Restoration of Minimum Tax Preference for Depletion and 
Intangible Drilling Costs for Independent Producers and Royalty 
Owners.--Section 1915 of the Energy Policy Act of 1992 (and the 
amendments made by such section) are hereby repealed, and the Internal 
Revenue Code of 1986 shall be applied and administered as if such 
section (and amendments) had never been enacted.
    (b) Repeal of Minimum Tax Deduction Based On Intangible Drilling 
Cost Preference.--
            (1) In general.--Subparagraph (A) of section 56(h)(1) of 
        such Code (relating to adjustment based on energy preferences), 
        as in effect after the application of subsection (a), is 
        amended to read as follows:
                    ``(A) 50 percent of the marginal production 
                depletion preference, or''.
            (2) Conforming amendments.--
                    (A) Subsection (h) of section 56 of such Code, as 
                so in effect, is amended by striking paragraphs (3), 
                (4), and (6) and by redesignating paragraphs (5), (7), 
                and (8) as paragraphs (3), (4) and (5), respectively.
                    (B) Paragraph (4) of section 56(h) of such Code (as 
                so redesignated by subparagraph (A)) is amended to read 
                as follows:
            ``(4) Special rule.--For purposes of paragraphs (1)(B) and 
        (3), alternative minimum taxable income shall be determined 
        without regard to the deduction allowable under this subsection 
        and the alternative tax net operating deduction under 
        subsection (a)(4).''
                    (C) Clause (ii) of section 59(a)(2)(A) of such Code 
                is amended by striking ``alternative tax energy 
                preference''.
                    (D) Paragraph (1) of section 59A(b) of such Code is 
                amended by striking ``alternative tax energy 
                preference''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after the date of the 
        enactment of this Act.

SEC. 6. TECHNICAL AMENDMENTS.

    (a) Transfer of Definition.--Section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431) is amended by adding at the end the 
following new paragraph:
    ``(20) The term `multicandidate political committee' means a 
political committee which has been registered under section 303 for a 
period of not less than 6 months, which has received contributions from 
more than 50 persons, and, except for any State political party 
organization, has made contributions to 5 or more candidates for 
Federal office.''.
    (b) Conforming Amendment.--Section 315(a)(4) of the Federal 
Election Campaign Act of 1971 (2 U.S.C. 441a(a)(4)) is amended by 
striking out the second sentence.