I 

112TH CONGRESS 

2D SESSION H. R. 4108 

To amend the Internal Revenue Code of 1986 to increase and extend the 

credit for qualifying advanced energy projects, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 29, 2012 

Ms. BERKLEY introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Natural Resources and the Budget, 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 amend the Internal Revenue Code of 1986 to increase 

and extend the credit for qualifying advanced energy 

projects, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Energy Jobs 

5 Act of 2012’’. 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•HR 4108 IH

1 TITLE I—INCREASE AND EXTEN2 SION OF CREDIT FOR QUALI3 FYING ADVANCED ENERGY 

4 PROJECTS 

5 SEC. 101. INCREASE AND EXTENSION OF CREDIT FOR 

6 QUALIFYING ADVANCED ENERGY PROJECTS. 

7 (a) IN GENERAL.—Subsection (d) of section 48C of 

8 the Internal Revenue Code of 1986 is amended by adding 

9 at the end the following new paragraph: 

10 ‘‘(6) ADDITIONAL 2012 ALLOCATIONS.— 

11 ‘‘(A) IN GENERAL.—Not later than 180 

12 days after the date of the enactment of this 

13 paragraph, the Secretary, in consultation with 

14 the Secretary of Energy, shall establish a pro15 gram to consider and award certifications for 

16 qualified investments eligible for credits under 

17 this section to qualifying advanced energy 

18 project sponsors with respect to applications re19 ceived on or after the date of the enactment of 

20 this paragraph. 

21 ‘‘(B) LIMITATION.—The total amount of 

22 credits that may be allocated under the pro23 gram described in subparagraph (A) shall not 

24 exceed $5,000,000,000. 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•HR 4108 IH

1 ‘‘(C) APPLICATION OF CERTAIN RULES.— 

2 Rules similar to the rules of paragraphs (2), 

3 (3), (4), and (5) shall apply for purposes of the 

4 program described in subparagraph (A), except 

5 that applicants shall have 2 years from the date 

6 that the Secretary establishes such program to 

7 submit applications.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall take effect on the date of the enactment 

10 of this Act. 

11 TITLE II—REVENUE OFFSETS 

12 Subtitle A—Close Big Oil Tax 

13 Loopholes 

14 SEC. 201. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

15 APPLICABLE TO MAJOR INTEGRATED OIL 

16 COMPANIES WHICH ARE DUAL CAPACITY 

17 TAXPAYERS. 

18 (a) IN GENERAL.—Section 901 of the Internal Rev19 enue Code of 1986 is amended by redesignating subsection 

20 (n) as subsection (o) and by inserting after subsection (m) 

21 the following new subsection: 

22 ‘‘(n) SPECIAL RULES RELATING TO MAJOR INTE23 GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY

24 TAXPAYERS.— 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•HR 4108 IH

1 ‘‘(1) GENERAL RULE.—Notwithstanding any 

2 other provision of this chapter, any amount paid or 

3 accrued by a dual capacity taxpayer which is a 

4 major integrated oil company (as defined in section 

5 167(h)(5)(B)) to a foreign country or possession of 

6 the United States for any period shall not be consid7 ered a tax— 

8 ‘‘(A) if, for such period, the foreign coun9 try or possession does not impose a generally 

10 applicable income tax, or 

11 ‘‘(B) to the extent such amount exceeds 

12 the amount (determined in accordance with reg13 ulations) which— 

14 ‘‘(i) is paid by such dual capacity tax15 payer pursuant to the generally applicable 

16 income tax imposed by the country or pos17 session, or 

18 ‘‘(ii) would be paid if the generally ap19 plicable income tax imposed by the country 

20 or possession were applicable to such dual 

21 capacity taxpayer. 

22 Nothing in this paragraph shall be construed to 

23 imply the proper treatment of any such amount not 

24 in excess of the amount determined under subpara25 graph (B). 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•HR 4108 IH

1 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur2 poses of this subsection, the term ‘dual capacity tax3 payer’ means, with respect to any foreign country or 

4 possession of the United States, a person who— 

5 ‘‘(A) is subject to a levy of such country or 

6 possession, and 

7 ‘‘(B) receives (or will receive) directly or 

8 indirectly a specific economic benefit (as deter9 mined in accordance with regulations) from 

10 such country or possession. 

11 ‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 

12 For purposes of this subsection— 

13 ‘‘(A) IN GENERAL.—The term ‘generally 

14 applicable income tax’ means an income tax (or 

15 a series of income taxes) which is generally im16 posed under the laws of a foreign country or 

17 possession on income derived from the conduct 

18 of a trade or business within such country or 

19 possession. 

20 ‘‘(B) EXCEPTIONS.—Such term shall not 

21 include a tax unless it has substantial applica22 tion, by its terms and in practice, to— 

23 ‘‘(i) persons who are not dual capacity 

24 taxpayers, and 


rfrederick on DSK6VPTVN1PROD with BILLS
6 

•HR 4108 IH

1 ‘‘(ii) persons who are citizens or resi2 dents of the foreign country or posses3 sion.’’. 

4 (b) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—The amendments made by 

6 this section shall apply to taxes paid or accrued in 

7 taxable years beginning after the date of the enact8 ment of this Act. 

9 (2) CONTRARY TREATY OBLIGATIONS

10 UPHELD.—The amendments made by this section 

11 shall not apply to the extent contrary to any treaty 

12 obligation of the United States. 

13 SEC. 202. LIMITATION ON SECTION 199 DEDUCTION ATTRIB14 UTABLE TO OIL, NATURAL GAS, OR PRIMARY 

15 PRODUCTS THEREOF. 

16 (a) DENIAL OF DEDUCTION.—Paragraph (4) of sec17 tion 199(c) of the Internal Revenue Code of 1986 is 

18 amended by adding at the end the following new subpara19 graph: 

20 ‘‘(E) SPECIAL RULE FOR CERTAIN OIL

21 AND GAS INCOME.—In the case of any taxpayer 

22 who is a major integrated oil company (as de23 fined in section 167(h)(5)(B)) for the taxable 

24 year, the term ‘domestic production gross re25 ceipts’ shall not include gross receipts from the 


rfrederick on DSK6VPTVN1PROD with BILLS
7 

•HR 4108 IH

1 production, transportation, or distribution of 

2 oil, natural gas, or any primary product (within 

3 the meaning of subsection (d)(9)) thereof.’’. 

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2011. 

7 SEC. 203. LIMITATION ON DEDUCTION FOR INTANGIBLE 

8 DRILLING AND DEVELOPMENT COSTS. 

9 (a) IN GENERAL.—Section 263(c) of the Internal 

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

11 the following new sentence: ‘‘This subsection shall not 

12 apply to amounts paid or incurred by a taxpayer in any 

13 taxable year in which such taxpayer is a major integrated 

14 oil company (as defined in section 167(h)(5)(B)).’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to amounts paid or incurred in tax17 able years beginning after December 31, 2011. 

18 SEC. 204. LIMITATION ON PERCENTAGE DEPLETION AL19 LOWANCE FOR OIL AND GAS WELLS. 

20 (a) IN GENERAL.—Section 613A of the Internal Rev21 enue Code of 1986 is amended by adding at the end the 

22 following new subsection: 

23 ‘‘(f) APPLICATION WITH RESPECT TO MAJOR INTE24 GRATED OIL COMPANIES.—In the case of any taxable year 

25 in which the taxpayer is a major integrated oil company 


rfrederick on DSK6VPTVN1PROD with BILLS
8 

•HR 4108 IH

1 (as defined in section 167(h)(5)(B)), the allowance for 

2 percentage depletion shall be zero.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2011. 

6 SEC. 205. LIMITATION ON DEDUCTION FOR TERTIARY 

7 INJECTANTS. 

8 (a) IN GENERAL.—Section 193 of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following new subsection: 

11 ‘‘(d) APPLICATION WITH RESPECT TO MAJOR INTE12 GRATED OIL COMPANIES.—This section shall not apply to 

13 amounts paid or incurred by a taxpayer in any taxable 

14 year in which such taxpayer is a major integrated oil com15 pany (as defined in section 167(h)(5)(B)).’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to amounts paid or incurred in tax18 able years beginning after December 31, 2011. 

19 Subtitle B—Outer Continental 

20 Shelf Oil and Natural Gas 

21 SEC. 211. REPEAL OF OUTER CONTINENTAL SHELF DEEP 

22 WATER AND DEEP GAS ROYALTY RELIEF. 

23 (a) IN GENERAL.—Sections 344 and 345 of the En24 ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 

25 repealed. 


rfrederick on DSK6VPTVN1PROD with BILLS
9 

•HR 4108 IH

1 (b) ADMINISTRATION.—The Secretary of the Interior 

2 shall not be required to provide for royalty relief in the 

3 lease sale terms beginning with the first lease sale held 

4 on or after the date of the enactment of this Act for which 

5 a final notice of sale has not been published. 

6 Subtitle C—Miscellaneous 

7 SEC. 221. DEFICIT REDUCTION. 

8 The net amount of any savings realized as a result 

9 of the enactment of this Act and the amendments made 

10 by this Act (after any expenditures authorized by this Act 

11 and the amendments made by this Act) shall be deposited 

12 in the Treasury and used for Federal budget deficit reduc13 tion or, if there is no Federal budget deficit, for reducing 

14 the Federal debt in such manner as the Secretary of the 

15 Treasury considers appropriate. 

16 SEC. 222. BUDGETARY EFFECTS. 

17 The budgetary effects of this Act, for the purpose of 

18 complying with the Statutory Pay-As-You-Go Act of 2010, 

19 shall be determined by reference to the latest statement 

20 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

21 Act, submitted for printing in the Congressional Record 

22 by the Chairman of the Senate Budget Committee, pro23 vided that such statement has been submitted prior to the 

24 vote on passage. 

Æ 


rfrederick on DSK6VPTVN1PROD with BILLS