To amend the Outer Continental Shelf Lands Act to direct the Secretary of the Interior to issue regulations under which the Secretary may authorize use of a decommissioned offshore oil and gas platform for culture of marine organisms, an artificial reef, or scientific research, and for other purposes.

Summary: Rigs to Reefs Act of 2003 - Amends the Outer Continental Shelf Lands Act to instruct the Secretary of the Interior to issue regulations authorizing the use for culture of marine organisms, an artificial reef, or scientific research of any offshore oil and gas platform decommissioned from service for oil and gas purposes.

Denies liability under Federal law of any former owner of an offshore oil and gas platform for costs or damages arising from use of it for culture of marine organisms, an artificial reef, or scientific research, unless such costs or damages arise from: (1) use of the platform by the person for development or production of oil or gas; or (2) another act or omission.

Amends the Internal Revenue Code of 1986 (relating to business-related credits) to establish an income tax credit for costs relating to converting offshore oil and gas platforms for culturing marine organisms.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rigs to Reefs Act of 2003''.

SEC. 2. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS 
              FOR MARICULTURE, ARTIFICIAL REEF, OR SCIENTIFIC RESEARCH.

    (a) In General.--The Outer Continental Shelf Lands Act (43 U.S.C. 
1301 et seq.) is amended by inserting after section 9 the following:

``SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS FOR 
              MARICULTURE, ARTIFICIAL REEF, OR SCIENTIFIC RESEARCH.

    ``(a) In General.--The Secretary shall issue regulations under 
which the Secretary may authorize use of an offshore oil and gas 
platform that is decommissioned from service for oil and gas purposes 
for culture of marine organisms, an artificial reef, or scientific 
research.
    ``(b) Limitation on Liability.--A person that used an offshore oil 
and gas platform for oil and gas purposes and that does not have any 
ownership or control of the platform shall not be liable under Federal 
law for any costs or damages arising from such platform after the date 
the platform is used for culture of marine organisms, an artificial 
reef, or scientific research under this section, unless such costs or 
damages arise from--
            ``(1) use of the platform by the person for development or 
        production of oil or gas; or
            ``(2) another act or omission of the person.
    ``(c) Other Leasing and Use Not Affected.--This section, and the 
use of any offshore oil and gas platform for culture of marine 
organisms, an artificial reef, or scientific research under this 
section, shall not affect--
            ``(1) the authority of the Secretary to lease any area 
        under this Act; or
            ``(2) any activity otherwise authorized by a lease under 
        this Act.''.
    (b) Deadline for Regulations.--The Secretary of the Interior shall 
issue regulations under subsection (a) by not later than 180 days after 
the date of the enactment of this Act.
    (c) Study and Report on Effects of Removal of Platforms.--Not later 
than one year after the date of the enactment of this Act, the 
Secretary of Interior, in consultation with other Federal agencies as 
necessary, shall study and report to the Congress regarding how the 
removal of offshore oil and gas platforms from the outer Continental 
Shelf would affect existing fish stocks and coral populations.

SEC. 3. CREDIT FOR COSTS RELATING TO CONVERTING OFFSHORE OIL AND GAS 
              PLATFORMS FOR USE IN CULTURING MARINE ORGANISMS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45G. CREDIT FOR COSTS RELATING TO CONVERTING OFFSHORE OIL AND 
              GAS PLATFORMS FOR CULTURING MARINE ORGANISMS.

    ``(a) General Rule.--For purposes of section 38, the marine 
organisms culturing credit is an amount equal to 30 percent of the 
qualified marine organisms culturing expenditures of the taxpayer 
during the taxable year.
    ``(b) Qualified Marine Organisms Culturing Expenditures.--For 
purposes of subsection (a), the term `qualified marine organisms 
culturing expenditures' means, with respect to a platform owned by the 
taxpayer--
            ``(1) amounts paid or incurred for maintaining an offshore 
        oil and gas platform from the time such platform is 
        decommissioned from service for oil and gas purposes to the 
        time it is converted for use in the culture of marine 
        organisms, including costs of moving such platform to the 
        reefing location, if applicable,
            ``(2) an amount equal to the excess (if any) of--
                    ``(A) the costs of converting such platform for use 
                in the culture of marine organisms, over
                    ``(B) the amount that could have been received if 
                such platform were sold as scrap on shore.
    ``(c) Election.--This section shall apply to any taxpayer for any 
taxable year only if such taxpayer elects (at such time and in such 
manner as the Secretary may by regulations prescribe) to have this 
section apply for such taxable year.''.
    (b) Conforming Amendments.--
            (1) Subsection (b) of section 38 of such Code is amended by 
        striking ``plus'' at the end of paragraph (14), by striking the 
        period at the end of paragraph (15) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(16) the marine organisms culturing credit determined 
        under section 45G(a).''.
            (2) No carryback before effective date.--Subsection (d) of 
        section 39 of such Code (relating to carryback and carryforward 
        of unused credits) is amended by adding at the end the 
        following new paragraph:
            ``(11) No carryback of section 45g credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the credit determined under 
        section 45G may be carried back to a taxable year ending before 
        January 1, 2004.''.
            (3) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

                              ``Sec. 45G. Credit for costs relating to 
                                        converting offshore oil and gas 
                                        platforms for culturing marine 
                                        organisms.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.