Termination of Energy and Natural Resource Tax Subsidies Act of 1995

Summary: Termination of Energy and Natural Resource Tax Subsidies Act of 1995 - Amends the Internal Revenue Code to repeal the expensing of intangible drilling and development costs and of mining exploration and development costs.  Repeals limitations on percentage depletion in the case of oil and gas wells.  Repeals the exception from passive loss rules for working interest in oil and gas property.  Terminates the credit for any qualified fuels produced from a nonconventional source.  Repeals the alcohol fuels credit.  Repeals the reduced fuel tax rates for certain fuels.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Termination of Energy and Natural 
Resource Tax Subsidies Act of 1995''.

SEC. 2. REPEAL OF EXPENSING OF INTANGIBLE DRILLING AND DEVELOPMENT 
              COSTS AND OF MINING EXPLORATION AND DEVELOPMENT COSTS.

    (a) Intangible Drilling and Development Costs.--Section 263(c) of 
the Internal Revenue Code of 1986 is hereby repealed.
    (b) Development Expenditures.--Section 616 of the Internal Revenue 
Code of 1986 (relating to development expenditures) is hereby repealed.
    (c) Exploration Expenditures.--Subsection (i) of section 617 of 
such Code is amended to read as follows:
    ``(i) Termination.--No deduction shall be allowed under this 
section for any expenditure paid or incurred in a taxable year 
beginning after the date of the enactment of this subsection.''
    (d) Conforming Amendments.--
            (1) Paragraph (2) of section 56(a) of such Code is hereby 
        repealed.
            (2) Subsection (a) of section 57 of such Code is amended by 
        striking paragraph (2).
            (3) Paragraph (2) of section 59(e) of such Code is amended 
        by adding ``and'' at the end of subparagraph (A), by striking 
        the period at the end of subparagraph (B) and inserting a 
        period, and by striking subparagraphs (C), (D), and (E).
            (4) Subparagraph (A) of section 59(e)(5) of such Code is 
        amended by inserting before the period ``, as in effect before 
        the Termination of Energy and Natural Resource Tax Subsidies 
        Act of 1995''.
            (5) Subsection (c) of section 193 of such Code is amended 
        to read as follows:
    ``(c) Application With Other Deductions.--No deduction shall be 
allowed under subsection (a) with respect to any expenditure with 
respect to which a deduction is allowed or allowable to the taxpayer 
under any other provision of this chapter.''
            (6) Paragraph (1) of section 263(a) of such Code is amended 
        by striking subparagraph (A) and by redesignating the 
        succeeding subparagraphs accordingly.
            (7) Section 263 of such Code is amended by striking 
        subsection (i).
            (8) Subsection (c) of section 263A of such Code is amended 
        by striking paragraph (3) and by redesignating the succeeding 
        paragraphs accordingly.
            (9) Paragraph (5) of section 263A(c) of such Code, as 
        redesignated by paragraph (8), is amended by striking 
        ``subparagraphs (B), (C), (D), and (E)'' and inserting 
        ``subparagraph (B)''.
            (10) Section 291 of such Code is amended by striking 
        subsection (b).
            (11) Subsection (n) of section 312 of such Code is amended 
        by striking paragraph (2).
            (12) Clause (i) of section 1254(a)(1)(A) of such Code is 
        amended--
                    (A) by inserting ``(as in effect before the 
                Termination of Energy and Natural Resource Tax 
                Subsidies Act of 1995)'' after ``617'', and
                    (B) by adding at the end the following: ``For 
                purposes of clause (i), any deduction under section 
                291(b)(2) (as in effect before the Termination of 
                Energy and Natural Resource Tax Subsidies Act of 1995) 
                shall be treated as a deduction allowable under section 
                263, 616, or 617 (whichever is appropriate).''
    (e) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 3. REPEAL OF PERCENTAGE DEPLETION.

    (a) In General.--Section 613 of the Internal Revenue Code of 1986 
(relating to limitations on percentage depletion in case of oil and gas 
wells) is amended by adding at the end the following new subsection:
    ``(f) Termination.--The allowance under section 611 shall be 
determined without regard to this section for taxable years beginning 
after the date of the enactment of this subsection.''
    (b) Termination of Section 613A.--Section 613A of such Code is 
amended by adding at the end the following new subsection:
    ``(f) Termination.--The allowance under section 611 shall be 
determined without regard to this section for taxable years beginning 
after the date of the enactment of this subsection.''

SEC. 4. REPEAL OF EXCEPTION FROM PASSIVE LOSS RULES FOR WORKING 
              INTERESTS IN OIL AND GAS PROPERTY.

    (a) In General.--Section 469(c)(3) of the Internal Revenue Code of 
1986 is hereby repealed.
    (b) Conforming Amendment.--Paragraph (4) of section 469(c) of such 
Code is amended by striking ``paragraphs (2) and (3)'' each place it 
appears and inserting ``paragraph (2)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. TERMINATION OF CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL 
              SOURCE.

    Section 29 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new subsection:
    ``(h) Termination.--Notwithstanding any other provision of this 
section, no credit shall be allowed under this section with respect to 
any qualified fuels produced by a facility placed in service after the 
date of the enactment of this subsection.''

SEC. 6. REPEAL OF TAX BENEFITS FOR ALCOHOL FUELS.

    (a) Repeal of Alcohol Fuels Credit.--
            (1) In general.--Section 40 of the Internal Revenue Code of 
        1986 (relating to alcohol used as fuel) is hereby repealed.
            (2) Conforming amendments.--
                    (A) Subsection (b) of section 38 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                the following paragraphs accordingly.
                    (B) Section 87 of such Code is hereby repealed.
                    (C) Subsection (c) of section 196 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                the following paragraphs accordingly.
                    (D) Subsection (n) of section 6501 of such Code is 
                amended by striking ``40(f)''.
                    (E) The table of sections for subpart D of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 40.
                    (F) The table of sections for part II of subchapter 
                B of chapter 1 of such Code is amended by striking the 
                item relating to section 87.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (b) Repeal of Reduced Fuel Tax Rates.--
            (1) Gasoline and diesel fuel.--Section 4081 of such Code is 
        amended by striking subsection (c) and by redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively.
            (2) Aviation fuel.--Section 4091 of such Code is amended by 
        striking subsection (c).
            (3) Special motor fuels.--
                    (A) Section 4041 of such Code is amended by 
                striking subsections (k) and (m).
                    (B) Subsection (b) of section 4041 of such Code is 
                amended by striking paragraph (2).
            (4) Conforming amendments.--
                    (A) Section 6427 of such Code is amended by 
                striking subsection (f).
                    (B) Subsection (i) of section 6427 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                paragraphs (4) and (5) as paragraphs (3) and (4), 
                respectively.
                    (C) Paragraph (4) of section 6427(i) of such Code, 
                as redesignated by subparagraph (B), is amended by 
                striking the last sentence of subparagraph (A) and 
                inserting the following new flush sentence:
                ``Notwithstanding subsection (l)(1), if the Secretary 
                has not paid pursuant to a claim filed under the 
                preceding sentence within 20 days of the date of the 
                filing of such claim, the claim shall be paid with 
                interest from such date determined by using the 
                overpayment rate and method under section 6621.''
                    (D) Section 9502 of such Code is amended by 
                striking subsection (e).
                    (E) Subsection (f) of section 9502 of such Code is 
                amended by striking paragraph (2) and by redesignating 
                paragraph (3) as paragraph (2).
                    (F) Subsection (b) of section 9503 of such Code is 
                amended by striking paragraph (5).
                    (G) Subsection (f) of section 9503 of such Code is 
                amended by striking paragraph (3) and by redesignating 
                paragraph (4) as paragraph (3).
            (5) Effective date.--The amendments made by this subsection 
        shall take effect on the date of the enactment of this Act.