II 

117TH CONGRESS 

2D SESSION S. 4768 

To amend the Internal Revenue Code of 1986 to tax excess profits of large 

oil and gas companies, to impose a tax on the repurchase of stock 

by large oil and gas companies, to end the use of the LIFO method 

of accounting by large oil and gas trades or businesses, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 4, 2022 

Mr. WYDEN (for himself, Mr. SCHUMER, Mrs. MURRAY, Ms. STABENOW, Mr. 

CASEY, Mr. PADILLA, Ms. HIRONO, Mr. BOOKER, Ms. KLOBUCHAR, Mr. 

REED, Mr. WARNOCK, Mrs. FEINSTEIN, Mr. BLUMENTHAL, and Mr. VAN

HOLLEN) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to tax excess 

profits of large oil and gas companies, to impose a tax 

on the repurchase of stock by large oil and gas companies, to end the use of the LIFO method of accounting 

by large oil and gas trades or businesses, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Taxing Big Oil Profit3 eers Act’’. 

4 SEC. 2. TAX ON EXCESS PROFITS OF CERTAIN TAXPAYERS 

5 FROM OIL AND GAS. 

6 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

7 Internal Revenue Code of 1986 is amended by adding at 

8 the end the following new part: 

9 ‘‘PART VIII—WINDFALL PROFITS FROM OIL AND 

10 GAS 

‘‘Sec. 59B. Tax on oil and gas excess profits. 

11 ‘‘SEC. 59B. TAX ON OIL AND GAS EXCESS PROFITS. 

12 ‘‘(a) IMPOSITION OF TAX.— 

13 ‘‘(1) IN GENERAL.—In addition to any other 

14 tax imposed under this chapter, there is hereby im15 posed on each applicable taxpayer for any taxable 

16 year a tax equal to 21 percent of the excess profits 

17 of such taxpayer for such taxable year. 

18 ‘‘(2) EXCESS PROFITS.—For purposes of this 

19 subsection, the term ‘excess profits’ means, with re20 spect to any taxable year, the excess of— 

21 ‘‘(A) the current profits of the taxpayer for 

22 the taxable year, over 

23 ‘‘(B) the normal return of the taxpayer for 

24 the taxable year. 


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1 ‘‘(b) APPLICABLE TAXPAYER.—For purposes of this 

2 section— 

3 ‘‘(1) IN GENERAL.—The term ‘applicable tax4 payer’ means, with respect to any taxable year, any 

5 person if— 

6 ‘‘(A) the average annual gross receipts of 

7 such person for the 3-taxable-year period end8 ing with the taxable year which precedes such 

9 taxable year equals or exceeds $1,000,000,000, 

10 and 

11 ‘‘(B) such person is primarily engaged in 1 

12 or more oil or natural gas trades or businesses 

13 during the taxable year. 

14 ‘‘(2) SPECIAL RULES FOR APPLICABLE ENTI15 TIES.— 

16 ‘‘(A) IN GENERAL.—If an entity is an ap17 plicable entity (as defined in subsection (e)) for 

18 any taxable year— 

19 ‘‘(i) except as provided in paragraphs 

20 (1)(A) and (2)(B) of subsection (e), such 

21 entity shall not be treated as an applicable 

22 taxpayer for purposes of this section, but 

23 ‘‘(ii) any allocable share of a covered 

24 taxpayer of any excess profits of such enti25 ty for such taxable year (as determined 


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1 under subsection (e)) shall be taken into 

2 account by such taxpayer under subsection 

3 (a)(1)— 

4 ‘‘(I) as excess profits of such tax5 payer for the taxable year of such tax6 payer with or within which such tax7 able year of such entity ends, and 

8 ‘‘(II) in the same manner as if 

9 such taxpayer were an applicable tax10 payer. 

11 ‘‘(B) COVERED TAXPAYER.—For purposes 

12 of this section, the term ‘covered taxpayer’ 

13 means, with respect to any taxable year— 

14 ‘‘(i) a taxpayer who is an individual 

15 (other than an estate or trust) and whose 

16 adjusted gross income for such taxable 

17 year exceeds $400,000 ($200,000 in the 

18 case of a married individual filing sepa19 rately), 

20 ‘‘(ii) an estate or trust, or 

21 ‘‘(iii) a C corporation which is not an 

22 applicable taxpayer. 

23 ‘‘(3) OIL OR NATURAL GAS TRADE OR BUSI24 NESS.—The term ‘oil or natural gas trade or busiVerDate Sep 11 2014 04:08 Aug 13, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4768.IS S4768

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1 ness’ means any trade or business that consists of 

2 one or more of the following: 

3 ‘‘(A) The production of oil or natural gas. 

4 ‘‘(B) The refining of oil or natural gas. 

5 ‘‘(C) The processing of oil or natural gas. 

6 ‘‘(D) The transportation of oil or natural 

7 gas. 

8 ‘‘(E) The distribution of oil or natural gas. 

9 ‘‘(4) APPLICABLE RULES RELATING TO GROSS

10 RECEIPTS.—For purposes of paragraph (1)(A)— 

11 ‘‘(A) except as provided in subsection (f), 

12 there shall be taken into account only gross re13 ceipts which are effectively connected with the 

14 conduct of a trade or business within the 

15 United States, the Commonwealth of Puerto 

16 Rico, or any possession of the United States, 

17 and 

18 ‘‘(B) rules similar to the rules of para19 graphs (2) and (3) of section 448(c) shall 

20 apply. 

21 ‘‘(c) CURRENT PROFITS.—For purposes of this sec22 tion, the term ‘current profits’ means, with respect to any 

23 applicable taxpayer for any taxable year, the taxable in24 come of the taxpayer computed under this chapter for 


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1 such taxable year, determined with the following modifica2 tions: 

3 ‘‘(1) NO NET OPERATING LOSS DEDUCTION.— 

4 No net operating loss deduction shall be allowed. 

5 ‘‘(2) DEDUCTION FOR EMPLOYEE REMUNERA6 TION.— 

7 ‘‘(A) IN GENERAL.—Section 162(m) shall 

8 be applied— 

9 ‘‘(i) by substituting ‘In the case of 

10 any applicable taxpayer (as defined in sec11 tion 59B)’ for ‘In the case of any publicly 

12 held corporation’ in paragraph (1) thereof, 

13 ‘‘(ii) by substituting ‘covered indi14 vidual (as defined in section 

15 59B(c)(2)(B))’ for ‘covered employee’ each 

16 place it appears in paragraphs (1) and (4) 

17 thereof, and 

18 ‘‘(iii) by treating any reference to an 

19 ‘employee’ in paragraphs (1) and (4) 

20 thereof as a reference to an ‘individual’. 

21 ‘‘(B) COVERED INDIVIDUAL.—For pur22 poses of applying this paragraph to section 

23 162(m), the term ‘covered individual’ means 

24 any individual who— 


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1 ‘‘(i) is an officer, director, or employee 

2 of the applicable taxpayer for the taxable 

3 year, or 

4 ‘‘(ii) performed services for the appli5 cable taxpayer during the taxable year. 

6 For purposes of clause (i), any employee who is 

7 treated as an employee of the applicable tax8 payer under subsection (b) or (c) of section 414 

9 shall be treated as an employee for purposes of 

10 this subparagraph. 

11 ‘‘(3) CERTAIN FOREIGN INCOME.—Except as 

12 provided in subsection (f)— 

13 ‘‘(A) CERTAIN INCOME EXCLUDED.—In 

14 determining gross income— 

15 ‘‘(i) subpart F income and global in16 tangible low-taxed income included in gross 

17 income under sections 951 and 951A shall 

18 not be taken into account, and 

19 ‘‘(ii) foreign-derived intangible income 

20 (as defined in section 250) shall not be 

21 taken into account unless such income is 

22 domestic oil-related income which is de23 rived from oil or gas which is exported 

24 from the United States. 


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1 For purposes of clause (ii), the term ‘domestic 

2 oil-related income’ means income (other than 

3 dividend or interest income which is passive in4 come (as defined in section 904(d)(2)(A)) de5 rived from sources within the United States or 

6 its possessions from activities described in sub7 paragraphs (A) through (E) of section 

8 907(c)(2). 

9 ‘‘(B) DENIAL OF SECTION 250 DEDUC10 TION.—No deduction shall be allowed under 

11 section 250. 

12 ‘‘(d) NORMAL RETURN.—For purposes of this sec13 tion, the term ‘normal return’ means, with respect to any 

14 applicable taxpayer for any taxable year, an amount equal 

15 to 10 percent of the excess of— 

16 ‘‘(1) the gross receipts of the taxpayer taken 

17 into account in computing the taxpayer’s current 

18 profits for the taxable year, including the taxpayer’s 

19 allocable share of any gross receipts of a partner20 ship, S corporation, or other pass-thru entity speci21 fied by the Secretary under subsection (e)(2)(A), 

22 over 

23 ‘‘(2) the current profits of the taxpayer for the 

24 taxable year. 


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1 ‘‘(e) DEFINITIONS AND RULES RELATING TO APPLI2 CABLE ENTITIES.—For purposes of this section— 

3 ‘‘(1) IN GENERAL.—An applicable entity for 

4 any taxable year shall— 

5 ‘‘(A) compute the current profits, normal 

6 return, and excess profits of such entity for 

7 such taxable year in the same manner as if 

8 such entity were an applicable taxpayer, except 

9 that subsection (c) shall be applied by sub10 stituting the entity’s ‘non-separately stated tax11 able income’ for the entity’s ‘taxable income’, 

12 and 

13 ‘‘(B) report to each partner, shareholder, 

14 or other holder of an ownership interest in such 

15 entity its allocable share of the entity’s excess 

16 profits. 

17 ‘‘(2) APPLICABLE ENTITY.—The term ‘applica18 ble entity’ means, with respect to any taxable year, 

19 an entity— 

20 ‘‘(A) which is a partnership, S corporation, 

21 or other pass-thru entity specified by the Sec22 retary, and 

23 ‘‘(B) with respect to which the require24 ments of subparagraphs (A) and (B) of sub25 section (b)(1) are met for such taxable year, deVerDate Sep 11 2014 04:08 Aug 13, 2022 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4768.IS S4768

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1 termined in the same manner as if such entity 

2 were an applicable taxpayer. 

3 ‘‘(3) ALLOCABLE SHARE.—A person’s allocable 

4 share of the excess profits shall be determined in the 

5 same manner as— 

6 ‘‘(A) in the case of a partnership, such 

7 person’s distributive share of the non-separately 

8 stated taxable income of the partnership, 

9 ‘‘(B) in the case of an S corporation, such 

10 person’s pro rata share of the non-separately 

11 stated taxable income of the S corporation, and 

12 ‘‘(C) in the case of any other pass-thru en13 tity, such person’s share (as determined under 

14 rules prescribed by the Secretary) of the non15 separately stated taxable income of the entity. 

16 ‘‘(4) NON-SEPARATELY STATED TAXABLE IN17 COME.—The term ‘non-separately stated taxable in18 come’ means taxable income computed under— 

19 ‘‘(A) section 703(a) in the case of a part20 nership, 

21 ‘‘(B) section 1366(a)(1)(B) in the case of 

22 an S corporation, and 

23 ‘‘(C) rules prescribed by the Secretary in 

24 the case of any other pass-thru entity. 


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1 ‘‘(f) RULES FOR CERTAIN FOREIGN INCOME ATTRIB2 UTABLE TO IMPORTS INTO THE UNITED STATES.—For 

3 purposes of this section— 

4 ‘‘(1) IN GENERAL.—In the case of any oil and 

5 gas import income of an applicable taxpayer for any 

6 taxable year— 

7 ‘‘(A) in computing such taxpayer’s current 

8 profits for such taxable year— 

9 ‘‘(i) such oil and gas import income 

10 (and any deductions allocable to such in11 come) shall be taken into account, and 

12 ‘‘(ii) subsection (c)(3) shall not apply 

13 to any subpart F income, global intangible 

14 low-taxed income, or foreign-derived intan15 gible income of such taxpayer to the extent 

16 such income is attributable to such oil and 

17 gas import income, and 

18 ‘‘(B) gross receipts taken into account in 

19 computing such oil and gas import income shall 

20 be taken into account in computing the gross 

21 receipts of such taxpayer for purposes of sub22 section (b)(1)(A) . 

23 ‘‘(2) OIL AND GAS IMPORT INCOME.— 

24 ‘‘(A) CONTROLLED FOREIGN CORPORA25 TIONS.—In the case of a United States shareVerDate Sep 11 2014 04:08 Aug 13, 2022 Jkt 029200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4768.IS S4768

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1 holder of a controlled foreign corporation, the 

2 term ‘oil and gas import income’ means, with 

3 respect to such shareholder for such taxable 

4 year, such shareholder’s pro rata share of com5 bined foreign oil and gas income of the con6 trolled foreign corporation which is derived 

7 from oil and gas imported into the United 

8 States. 

9 ‘‘(B) AUTHORITY TO INCLUDE OTHER IN10 COME.—The Secretary may prescribe such reg11 ulations or other guidance to include in oil and 

12 gas import income of an applicable taxpayer its 

13 pro rata share of any combined foreign oil and 

14 gas income of any person related to the tax15 payer (other than a controlled foreign corpora16 tion) which is derived from oil and gas imported 

17 into the United States if the Secretary deter18 mines such inclusion is necessary to prevent the 

19 avoidance of the tax imposed by this section. 

20 ‘‘(3) DEFINITIONS AND SPECIAL RULES.— 

21 ‘‘(A) IN GENERAL.—The term ‘combined 

22 foreign oil and gas income’ has the meaning 

23 given such term by section 907(b)(1), except 

24 that in applying paragraphs (1) and (2) of sec25 tion 907(c) for purposes of section 907(b)(1), 


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•S 4768 IS

1 the term ‘income’ shall be substituted for ‘tax2 able income’ each place it appears. 

3 ‘‘(B) PRO RATA SHARE.—An applicable 

4 taxpayer’s pro rata share of any oil and gas im5 port income shall be determined under rules 

6 similar to the rules under section 951(a)(2). 

7 ‘‘(C) PREVENTION OF DOUBLE COUNT8 ING.—Oil and gas import income (and any de9 ductions allocable to such income) shall not be 

10 taken into account under paragraph (1) to the 

11 extent already taken into account. 

12 ‘‘(g) REGULATIONS OR OTHER GUIDANCE.—The 

13 Secretary shall prescribe such regulations or other guid14 ance as is necessary to carry out this section, including 

15 regulations or other guidance for the application of sub16 sections (b)(2) and (e), including regulations or other 

17 guidance— 

18 ‘‘(1) for the application of such subsections in 

19 the case of tiered entities, 

20 ‘‘(2) for determining a person’s allocable share 

21 where the non-separately stated taxable income of an 

22 entity is a loss, and 

23 ‘‘(3) providing rules for the reporting, including 

24 through tiered entities, of excess profits. 


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1 ‘‘(h) TERMINATION.—This section shall not apply to 

2 any taxable year beginning after December 31, 2025.’’. 

3 (b) TAX NOT TAKEN INTO ACCOUNT IN COMPUTING

4 ESTIMATED TAX.—Paragraph (1) of section 6654(f) of 

5 the Internal Revenue Code of 1986 is amended by insert6 ing ‘‘59B or’’ before ‘‘143(m)’’. 

7 (c) CONFORMING AMENDMENT.—The table of sub8 chapters for subchapter A of chapter 1 of the Internal 

9 Revenue Code of 1986 is amended by adding at the end 

10 the following new item: 

‘‘PART VIII—WINDFALL PROFITS FROM OIL AND GAS’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years ending after the 

13 date of the enactment of this Act. 

14 (e) TAX TREATED AS RATE CHANGE.—For purposes 

15 of section 15(a) of the Internal Revenue Code of 1986, 

16 the tax imposed by the amendments made by this section 

17 shall be treated in the same manner as a change in the 

18 rate of tax under chapter 1 of such Code. 

19 SEC. 3. EXCISE TAX ON REPURCHASE OF CORPORATE 

20 STOCK. 

21 (a) IN GENERAL.—Subtitle D of the Internal Rev22 enue Code of 1986 is amended by inserting after chapter 

23 36 the following new chapter: 


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1 ‘‘CHAPTER 37—REPURCHASE OF 

2 CORPORATE STOCK 

‘‘Sec. 4502. Repurchase of corporate stock by oil and gas companies. 

3 ‘‘SEC. 4502. REPURCHASE OF CORPORATE STOCK BY OIL 

4 AND GAS COMPANIES. 

5 ‘‘(a) GENERAL RULE.—There is hereby imposed on 

6 each covered corporation a tax equal to 25 percent of the 

7 fair market value of any stock of the corporation which 

8 is repurchased by such corporation during the taxable 

9 year. 

10 ‘‘(b) COVERED CORPORATION.—For purposes of this 

11 section, the term ‘covered corporation’ means, with respect 

12 to any repurchase, any domestic corporation— 

13 ‘‘(1) the stock of which is traded on an estab14 lished securities market (within the meaning of sec15 tion 7704(b)(1)), and 

16 ‘‘(2) which is an applicable taxpayer (as defined 

17 in section 59B) for the taxable year in which such 

18 repurchase occurs. 

19 ‘‘(c) REPURCHASE.—For purposes of this section— 

20 ‘‘(1) IN GENERAL.—The term ‘repurchase’ 

21 means— 

22 ‘‘(A) a redemption within the meaning of 

23 section 317(b) with regard to the stock of a 

24 covered corporation, and 


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1 ‘‘(B) any transaction determined by the 

2 Secretary to be economically similar to a trans3 action described in subparagraph (A). 

4 ‘‘(2) TREATMENT OF PURCHASES BY SPECIFIED

5 AFFILIATES.— 

6 ‘‘(A) IN GENERAL.—The acquisition of 

7 stock of a covered corporation by a specified af8 filiate of such covered corporation, from a per9 son who is not the covered corporation or a 

10 specified affiliate of such covered corporation, 

11 shall be treated as a repurchase of the stock of 

12 the covered corporation by such covered cor13 poration. 

14 ‘‘(B) SPECIFIED AFFILIATE.—For pur15 poses of this section, the term ‘specified affil16 iate’ means, with respect to any corporation— 

17 ‘‘(i) any corporation more than 50 

18 percent of the stock of which is owned (by 

19 vote or by value), directly or indirectly, by 

20 such corporation, and 

21 ‘‘(ii) any partnership more than 50 

22 percent of the capital interests or profits 

23 interests of which is held, directly or indi24 rectly, by such corporation. 


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1 ‘‘(3) ADJUSTMENT.—The amount taken into 

2 account under subsection (a) with respect to any 

3 stock repurchased by a covered corporation shall be 

4 reduced by the fair market value of any stock issued 

5 by the covered corporation during the taxable year, 

6 including the fair market value of any stock issued 

7 or provided to employees of such covered corporation 

8 or a specified affiliate of such covered corporation 

9 during the taxable year, whether or not such stock 

10 is issued or provided in response to the exercise of 

11 an option to purchase such stock. 

12 ‘‘(d) SPECIAL RULES FOR ACQUISITION OF STOCK OF

13 CERTAIN FOREIGN CORPORATIONS.— 

14 ‘‘(1) IN GENERAL.—In the case of an acquisi15 tion of stock of an applicable foreign corporation by 

16 a specified affiliate of such corporation (other than 

17 a foreign corporation or a foreign partnership (un18 less such partnership has a domestic entity as a di19 rect or indirect partner)) from a person who is not 

20 the applicable foreign corporation or a specified affil21 iate of such applicable foreign corporation, for pur22 poses of this section— 

23 ‘‘(A) such specified affiliate shall be treat24 ed as a covered corporation with respect to such 

25 acquisition, 


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1 ‘‘(B) such acquisition shall be treated as a 

2 repurchase of stock of a covered corporation by 

3 such covered corporation, and 

4 ‘‘(C) the adjustment under subsection 

5 (c)(3) shall be determined only with respect to 

6 stock issued or provided by such specified affil7 iate to employees of the specified affiliate. 

8 ‘‘(2) SURROGATE FOREIGN CORPORATIONS.—In 

9 the case of a repurchase of stock of a covered surro10 gate foreign corporation by such covered surrogate 

11 foreign corporation, or an acquisition of stock of a 

12 covered surrogate foreign corporation by a specified 

13 affiliate of such corporation, for purposes of this sec14 tion— 

15 ‘‘(A) the expatriated entity with respect to 

16 such covered surrogate foreign corporation shall 

17 be treated as a covered corporation with respect 

18 to such repurchase or acquisition, 

19 ‘‘(B) such repurchase or acquisition shall 

20 be treated as a repurchase of stock of a covered 

21 corporation by such covered corporation, and 

22 ‘‘(C) the adjustment under subsection 

23 (c)(3) shall be determined only with respect to 

24 stock issued or provided by such expatriated en25 tity to employees of the expatriated entity. 


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1 ‘‘(3) DEFINITIONS.—For purposes of this sub2 section— 

3 ‘‘(A) APPLICABLE FOREIGN CORPORA4 TION.—The term ‘applicable foreign corpora5 tion’ means any foreign corporation— 

6 ‘‘(i) the stock of which is traded on an 

7 established securities market (within the 

8 meaning of section 7704(b)(1)), and 

9 ‘‘(ii) with respect to which require10 ments of subparagraphs (B) and (C) of 

11 subsection (b)(1) are met with respect such 

12 corporation, except that in applying such 

13 subparagraphs, the taxable year of the ac14 quisition of stock shall be substituted for 

15 the taxable year of purchase of stock. 

16 ‘‘(B) COVERED SURROGATE FOREIGN COR17 PORATION.—The term ‘covered surrogate for18 eign corporation’ means any foreign corpora19 tion— 

20 ‘‘(i) which is a surrogate foreign cor21 poration (as determined under section 

22 7874(a)(2)(B) by substituting ‘September 

23 20, 2021’ for ‘March 4, 2003’ each place 

24 it appears) the stock of which is traded on 

25 an established securities market (within 


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•S 4768 IS

1 the meaning of section 7704(b)(1)), but 

2 only with respect to taxable years which in3 clude any portion of the applicable period 

4 with respect to such corporation under sec5 tion 7874(d)(1), and 

6 ‘‘(ii) with respect to which require7 ments of subparagraphs (B) and (C) of 

8 subsection (b)(1) are met with respect to 

9 the taxable year of the repurchase of stock 

10 of such corporation. 

11 ‘‘(C) EXPATRIATED ENTITY.—The term 

12 ‘expatriated entity’ has the meaning given such 

13 term by section 7874(a)(2)(A). 

14 ‘‘(e) EXCEPTIONS.—Subsection (a) shall not apply— 

15 ‘‘(1) to the extent that the repurchase is part 

16 of a reorganization (within the meaning of section 

17 368(a)) and no gain or loss is recognized on such re18 purchase by the shareholder under chapter 1 by rea19 son of such reorganization, 

20 ‘‘(2) in any case in which the stock repurchased 

21 is, or an amount of stock equal to the value of the 

22 stock repurchased is, contributed to an employer23 sponsored retirement plan, employee stock ownership 

24 plan, or similar plan, 


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1 ‘‘(3) in any case in which the total value of the 

2 stock repurchased during the taxable year does not 

3 exceed $1,000,000, 

4 ‘‘(4) to repurchases by a regulated investment 

5 company (as defined in section 851) or a real estate 

6 investment trust, or 

7 ‘‘(5) to the extent that the repurchase is treated 

8 as a dividend for purposes of this title. 

9 ‘‘(f) REGULATIONS AND GUIDANCE.—The Secretary 

10 shall prescribe such regulations and other guidance as are 

11 necessary or appropriate to administer and to prevent the 

12 avoidance of the purposes of this section, including regula13 tions and other guidance— 

14 ‘‘(1) to prevent the abuse of the exceptions pro15 vided by subsection (e), 

16 ‘‘(2) to address special classes of stock and pre17 ferred stock, and 

18 ‘‘(3) for the application of the rules under sub19 section (d). 

20 ‘‘(g) TERMINATION.—This section shall not apply to 

21 repurchases after December 31, 2025.’’. 

22 (b) TAX NOT DEDUCTIBLE.—Paragraph (6) of sec23 tion 275(a) of the Internal Revenue Code of 1986 is 

24 amended by inserting ‘‘37,’’ before ‘‘41’’. 


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1 (c) CLERICAL AMENDMENT.—The table of chapters 

2 for subtitle D of the Internal Revenue Code of 1986 is 

3 amended by inserting after the item relating to chapter 

4 36 the following new item: 

‘‘CHAPTER 37—REPURCHASE OF CORPORATE STOCK’’. 

5 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to repurchases (within the meaning 

7 of section 4502(c) of the Internal Revenue Code of 1986, 

8 as added by this section) of stock after the date of the 

9 enactment of this Act. 

10 SEC. 4. TERMINATION OF LIFO INVENTORIES FOR CERTAIN 

11 OIL AND GAS COMPANIES. 

12 (a) IN GENERAL.—Section 472 of the Internal Rev13 enue Code of 1986 is amended by adding at the end the 

14 following new subsection: 

15 ‘‘(h) TERMINATION FOR OIL AND NATURAL GAS

16 COMPANIES.— 

17 ‘‘(1) TERMINATION.—Except as provided in 

18 paragraph (2), subsection (a) shall not apply to any 

19 trade or business primarily consisting of one or more 

20 of the following: 

21 ‘‘(A) The production of oil or natural gas. 

22 ‘‘(B) The refining of oil or natural gas. 

23 ‘‘(C) The processing of oil or natural gas. 

24 ‘‘(D) The transportation of oil or natural 

25 gas. 


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1 ‘‘(E) The distribution of oil or natural gas. 

2 ‘‘(2) EXCEPTION.— 

3 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

4 not apply to any trade or business of a person 

5 for any taxable year if the average annual gross 

6 receipts of all trades or businesses of such per7 son for the 3-taxable-year period ending with 

8 the taxable year which precedes such taxable 

9 year does not exceed $1,000,000,000. 

10 ‘‘(B) APPLICABLE RULES.—For purposes 

11 of subparagraph (A) rules similar to the rules 

12 of paragraphs (2) and (3) of section 448(c) 

13 shall apply.’’. 

14 (b) CHANGE IN METHOD OF ACCOUNTING.—If any 

15 taxpayer is required by the amendments made by this sec16 tion to change its method of accounting in taxable years 

17 beginning after December 31, 2022, then, for purposes of 

18 section 481 of the Internal Revenue Code of 1986— 

19 (1) such change shall be treated as initiated by 

20 the taxpayer; and 

21 (2) such change shall be treated as made with 

22 the consent of the Secretary of the Treasury. 


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•S 4768 IS

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2022. 

Æ 


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