II 

118TH CONGRESS 

2D SESSION S. 4406 

To eliminate certain subsidies for fossil-fuel production. 

IN THE SENATE OF THE UNITED STATES 

MAY 23, 2024 

Mr. SANDERS (for himself, Mr. MERKLEY, Mr. BOOKER, Mr. VAN HOLLEN, 

Mr. WELCH, Ms. WARREN, and Mr. MARKEY) introduced the following 

bill; which was read twice and referred to the Committee on Finance 

A BILL 

To eliminate certain subsidies for fossil-fuel production. 

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 ‘‘End Polluter Welfare 

5 Act of 2024’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—ELIMINATION OF FOSSIL FUEL SUBSIDIES 

Sec. 101. Definition of fossil fuel. 

Sec. 102. Royalty relief. 

Sec. 103. Royalties under Mineral Leasing Act. 

Sec. 104. Offshore oil and gas royalty rate. 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•S 4406 IS

Sec. 105. Elimination of interest payments for royalty overpayments. 

Sec. 106. Removal of limits on liability for offshore facilities and pipeline operators. 

Sec. 107. Restrictions on use of appropriated funds by international financial 

institutions for projects that support fossil fuel. 

Sec. 108. Office of Fossil Energy and Carbon Management. 

Sec. 109. Loan Programs Office of the Department of Energy. 

Sec. 110. USDA assistance for carbon capture and storage systems. 

Sec. 111. Advanced Research Projects Agency—Energy. 

Sec. 112. Incentives for innovative technologies. 

Sec. 113. Rural Utility Service loan guarantees. 

Sec. 114. Prohibition on use of funds by the United States International Development Finance Corporation or the Export-Import Bank of the 

United States for financing projects, transactions, or other activities that support fossil fuel. 

Sec. 115. Transportation funds for grants, loans, loan guarantees, and other direct assistance. 

Sec. 116. Elimination of exclusion of certain lenders as owners or operators 

under CERCLA. 

Sec. 117. Powder River Basin. 

TITLE II—AMENDMENTS TO INTERNAL REVENUE CODE OF 1986 

Sec. 201. Termination of various tax expenditures relating to fossil fuels. 

Sec. 202. Termination of certain deductions and credits related to fossil fuels. 

Sec. 203. Uniform seven-year amortization for geological and geophysical expenditures. 

Sec. 204. Natural gas gathering lines treated as 15-year property. 

Sec. 205. Termination of last-in, first-out method of inventory for oil, natural 

gas, and coal companies. 

Sec. 206. Repeal of percentage depletion for coal and hard mineral fossil fuels. 

Sec. 207. Termination of capital gains treatment for royalties from coal. 

Sec. 208. Modifications of foreign tax credit rules applicable to oil and gas industry taxpayers receiving specific economic benefits. 

Sec. 209. Increase in oil spill liability trust fund financing rate. 

Sec. 210. Application of certain environmental taxes to synthetic crude oil. 

Sec. 211. Denial of deduction for removal costs and damages for certain oil 

spills. 

Sec. 212. Tax on crude oil and natural gas produced from the outer Continental Shelf in the Gulf of Mexico. 

Sec. 213. Repeal of corporate income tax exemption for publicly traded partnerships with qualifying income and gains from activities relating 

to fossil fuels. 

Sec. 214. Amortization of qualified tertiary injectant expenses. 

Sec. 215. Amortization of development expenditures. 

Sec. 216. Amortization of certain mining exploration expenditures. 

Sec. 217. Amortization of intangible drilling and development costs in the case 

of oil and gas wells. 

Sec. 218. Increase in excise tax rate for funding of Black Lung Disability Trust 

Fund. 

Sec. 219. Elimination of renewable electricity production credit eligibility for refined coal. 

Sec. 220. Treatment of foreign oil related income as subpart F income. 

Sec. 221. Repeal of exclusion of foreign oil and gas extraction income from the 

determination of tested income. 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•S 4406 IS

Sec. 222. Termination of credit for carbon oxide sequestration. 

Sec. 223. Eliminate drawbacks on petroleum taxes. 

Sec. 224. Modifying clean hydrogen production credit. 

TITLE III—REPEAL RECENT FOSSIL FUEL SUBSIDY LEGISLATION 

Sec. 301. Fiscal Responsibility Act. 

Sec. 302. Inflation Reduction Act. 

TITLE IV—ELIMINATION OF OTHER FOSSIL FUEL SUBSIDIES 

Sec. 401. Study and elimination of additional fossil fuel subsidies. 

1 TITLE I—ELIMINATION OF 

2 FOSSIL FUEL SUBSIDIES 

3 SEC. 101. DEFINITION OF FOSSIL FUEL. 

4 In this Act, the term ‘‘fossil fuel’’ means coal, petro5 leum, natural gas, or any derivative of coal, petroleum, 

6 or natural gas that is used for fuel. 

7 SEC. 102. ROYALTY RELIEF. 

8 (a) IN GENERAL.— 

9 (1) OUTER CONTINENTAL SHELF LANDS ACT.— 

10 Section 8(a)(3) of the Outer Continental Shelf 

11 Lands Act (43 U.S.C. 1337(a)(3)) is amended— 

12 (A) by striking subparagraph (B); and 

13 (B) by redesignating subparagraph (C) as 

14 subparagraph (B). 

15 (2) ENERGY POLICY ACT OF 2005.— 

16 (A) INCENTIVES FOR NATURAL GAS PRO17 DUCTION FROM DEEP WELLS IN THE SHALLOW

18 WATERS OF THE GULF OF MEXICO.—Section 

19 344 of the Energy Policy Act of 2005 (42 

20 U.S.C. 15904) is repealed. 


ssavage on LAPJG3WLY3PROD with BILLS
4 

•S 4406 IS

1 (B) DEEP WATER PRODUCTION.—Section 

2 345 of the Energy Policy Act of 2005 (42 

3 U.S.C. 15905) is repealed. 

4 (3) CLERICAL AMENDMENT.—The table of con5 tents in section 1(b) of the Energy Policy Act of 

6 2005 (Public Law 109–58; 119 Stat. 596) is amend7 ed by striking the items relating to sections 344 and 

8 345. 

9 (b) FUTURE PROVISIONS.—Notwithstanding any 

10 other provision of law, royalty relief shall not be permitted 

11 under a lease issued under section 8 of the Outer Conti12 nental Shelf Lands Act (43 U.S.C. 1337). 

13 SEC. 103. ROYALTIES UNDER MINERAL LEASING ACT. 

14 (a) COAL LEASES.—Section 7(a) of the Mineral 

15 Leasing Act (30 U.S.C. 207(a)) is amended in the fourth 

sentence by striking ‘‘121 16 ⁄2 per centum’’ and inserting 

‘‘183 17 ⁄4 percent’’. 

18 (b) LEASES ON LAND ON WHICH OIL OR NATURAL

19 GAS IS DISCOVERED.—Section 14 of the Mineral Leasing 

20 Act (30 U.S.C. 223) is amended in the fourth sentence 

by striking ‘‘121⁄2 per centum’’ and inserting ‘‘183 21 ⁄4 per22 cent’’. 

23 (c) LEASES ON LAND KNOWN OR BELIEVED TO

24 CONTAIN OIL OR NATURAL GAS.—Section 17 of the Min25 eral Leasing Act (30 U.S.C. 226) is amended— 


ssavage on LAPJG3WLY3PROD with BILLS
5 

•S 4406 IS

1 (1) in subsection (b)— 

2 (A) in paragraph (1)(A), in the fifth sentence, by striking ‘‘162 3 ⁄3 percent’’ each place it 

appears and inserting ‘‘183 4 ⁄4 percent’’; and 

5 (B) in paragraph (2)(A)(ii), by striking 

‘‘162 6 ⁄3 per centum’’ and inserting ‘‘not less than 

183 7 ⁄4 percent’’; 

(2) in subsection (l), by striking ‘‘162 8 ⁄3 per centum’’ each place it appears and inserting ‘‘183 9 ⁄4 per10 cent’’; and 

(3) in subsection (n)(1)(C), by striking ‘‘162 11 ⁄3

per centum’’ and inserting ‘‘not less than 183 12 ⁄4 per13 cent’’. 

14 SEC. 104. OFFSHORE OIL AND GAS ROYALTY RATE. 

15 Section 8(a)(1) of the Outer Continental Shelf Lands 

16 Act (43 U.S.C. 1337(a)(1)) is amended by striking ‘‘but 

not more than 183 17 ⁄4 percent, during the 10-year period 

18 beginning on the date of enactment of the Act titled ‘An 

19 Act to provide for reconciliation pursuant to title II of S. 

Con. Res. 14’, and not less than 162 20 ⁄3 percent thereafter,’’ 

21 each place it appears. 


ssavage on LAPJG3WLY3PROD with BILLS
6 

•S 4406 IS

1 SEC. 105. ELIMINATION OF INTEREST PAYMENTS FOR ROY2 ALTY OVERPAYMENTS. 

3 Section 111 of the Federal Oil and Gas Royalty Man4 agement Act of 1982 (30 U.S.C. 1721) is amended by 

5 adding at the end the following: 

6 ‘‘(k) PAYMENT OF INTEREST.—Interest shall not be 

7 paid on any overpayment.’’. 

8 SEC. 106. REMOVAL OF LIMITS ON LIABILITY FOR OFF9 SHORE FACILITIES AND PIPELINE OPERA10 TORS. 

11 Section 1004(a) of the Oil Pollution Act of 1990 (33 

12 U.S.C. 2704(a)) is amended— 

13 (1) in paragraph (3), by striking ‘‘plus 

14 $75,000,000; and’’ and inserting ‘‘and the liability 

15 of the responsible party under section 1002;’’; 

16 (2) in paragraph (4)— 

17 (A) by inserting ‘‘(except an onshore pipe18 line transporting diluted bitumen, bituminous 

19 mixtures, or any oil manufactured from bitu20 men)’’ after ‘‘for any onshore facility’’; and 

21 (B) by striking the period at the end and 

22 inserting ‘‘; and’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(5) for any onshore facility transporting di25 luted bitumen, bituminous mixtures, or any oil manVerDate Sep 11 2014 18:57 Jul 17, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4406.IS S4406

ssavage on LAPJG3WLY3PROD with BILLS
7 

•S 4406 IS

1 ufactured from bitumen, the liability of the respon2 sible party under section 1002.’’. 

3 SEC. 107. RESTRICTIONS ON USE OF APPROPRIATED 

4 FUNDS BY INTERNATIONAL FINANCIAL INSTI5 TUTIONS FOR PROJECTS THAT SUPPORT 

6 FOSSIL FUEL. 

7 (a) DEFINITION OF INTERNATIONAL FINANCIAL IN8 STITUTION.—In this section, the term ‘‘international fi9 nancial institution’’ means— 

10 (1) each institution described in section 

11 1701(c)(2) of the International Financial Institu12 tions Act (22 U.S.C. 262r(c)(2)); and 

13 (2) the North American Development Bank. 

14 (b) RESCISSION OF UNOBLIGATED FUNDS.— 

15 (1) IN GENERAL.—Of the unobligated balance 

16 of amounts appropriated or otherwise made available 

17 for a contribution of the United States to an inter18 national financial institution, an amount specified in 

19 paragraph (2) shall be rescinded if the institution 

20 provides support for a project that supports the pro21 duction or use of fossil fuels. 

22 (2) AMOUNT SPECIFIED.—The amount specified 

23 in this paragraph is an amount the Secretary of the 

24 Treasury determines to be equivalent to the amount 

25 of support provided by an international financial inVerDate Sep 11 2014 18:57 Jul 17, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4406.IS S4406

ssavage on LAPJG3WLY3PROD with BILLS
8 

•S 4406 IS

1 stitution described in paragraph (1) for a project 

2 that supports the production or use of fossil fuels. 

3 (c) PROHIBITION ON USE OF FUTURE FUNDS.—No 

4 amounts appropriated or otherwise made available for a 

5 contribution of the United States to an international fi6 nancial institution may be provided to the institution un7 less the institution agrees to not use the amount to provide 

8 support for any project that supports the production or 

9 use of fossil fuels. 

10 SEC. 108. OFFICE OF FOSSIL ENERGY AND CARBON MAN11 AGEMENT. 

12 (a) TERMINATION OF AUTHORITY.—Notwithstanding 

13 any other provision of law, the authority of the Secretary 

14 of Energy to carry out the Office of Fossil Energy and 

15 Carbon Management of the Department of Energy is ter16 minated. 

17 (b) RESCISSION.—Notwithstanding any other provi18 sion of law— 

19 (1) all amounts made available for the Office of 

20 Fossil Energy and Carbon Management that remain 

21 unobligated as of the date of enactment of this Act 

22 are rescinded; and 

23 (2) no amounts made available after the date of 

24 enactment of this Act for the Office of Fossil En25 ergy and Carbon Management shall be expended, 


ssavage on LAPJG3WLY3PROD with BILLS
9 

•S 4406 IS

1 other than such amounts as are necessary to cover 

2 costs incurred in terminating ongoing research of 

3 the Office of Fossil Energy and Carbon Manage4 ment, as determined by the Secretary of Energy, in 

5 consultation with other appropriate Federal agen6 cies. 

7 SEC. 109. LOAN PROGRAMS OFFICE OF THE DEPARTMENT 

8 OF ENERGY . 

9 (a) PROHIBITION.—Subject to subsection (b), none of 

10 the funds made available to the Loan Programs Office of 

11 the Department of Energy shall be used to carry out any 

12 project that supports fossil fuel, carbon capture, or hydro13 gen. 

14 (b) EXCEPTION.—The prohibition on the use of funds 

15 for hydrogen projects under subsection (a) does not apply 

16 to projects that support qualified clean hydrogen (as de17 fined in section 45V(c) of the Internal Revenue Code of 

18 1986 (as amended by section 224(a)(3))). 

19 SEC. 110. USDA ASSISTANCE FOR CARBON CAPTURE AND 

20 STORAGE SYSTEMS. 

21 Section 9003(j)(1) of the Farm Security and Rural 

22 Investment Act of 2002 (7 U.S.C. 8103(j)(1)) is amend23 ed— 

24 (1) by inserting ‘‘and’’ after ‘‘renewable energy 

25 systems,’’; and 


ssavage on LAPJG3WLY3PROD with BILLS
10 

•S 4406 IS

1 (2) by striking ‘‘and carbon capture and stor2 age systems,’’. 

3 SEC. 111. ADVANCED RESEARCH PROJECTS AGENCY—EN4 ERGY. 

5 None of the funds made available to the Advanced 

6 Research Projects Agency—Energy shall be used to carry 

7 out any project that supports fossil fuel. 

8 SEC. 112. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 

9 (a) IN GENERAL.—Section 1703 of the Energy Policy 

10 Act of 2005 (42 U.S.C. 16513) is amended— 

11 (1) in subsection (b)— 

12 (A) by striking paragraphs (2) and (10); 

13 and 

14 (B) by redesignating paragraphs (3), (4), 

15 (5), (6), (7), (8), (9), (11), (12), and (13) as 

16 paragraphs (2), (3), (4), (5), (6), (7), (8), (9), 

17 (10), and (11) respectively; 

18 (2) by striking subsection (c); and 

19 (3) by redesignating subsections (d) through (f) 

20 as subsections (c) through (e), respectively. 

21 (b) CONFORMING AMENDMENT.—Section 1704 of the 

22 Energy Policy Act of 2005 (42 U.S.C. 16514) is amend23 ed— 

24 (1) by striking subsection (b); and 


ssavage on LAPJG3WLY3PROD with BILLS
11 

•S 4406 IS

1 (2) by redesignating subsection (c) as sub2 section (b). 

3 SEC. 113. RURAL UTILITY SERVICE LOAN GUARANTEES. 

4 Notwithstanding any other provision of law, the Sec5 retary of Agriculture may not make a loan under title III 

6 of the Rural Electrification Act of 1936 (7 U.S.C. 931 

7 et seq.) to an applicant for the purpose of carrying out 

8 any project that will use fossil fuel. 

9 SEC. 114. PROHIBITION ON USE OF FUNDS BY THE UNITED 

10 STATES INTERNATIONAL DEVELOPMENT FI11 NANCE CORPORATION OR THE EXPORT-IM12 PORT BANK OF THE UNITED STATES FOR FI13 NANCING PROJECTS, TRANSACTIONS, OR 

14 OTHER ACTIVITIES THAT SUPPORT FOSSIL 

15 FUEL. 

16 Notwithstanding any other provision of law, no 

17 amounts appropriated or otherwise made available for the 

18 United States International Development Finance Cor19 poration, the Export-Import Bank of the United States, 

20 the United States Trade and Development Agency, the 

21 United States Agency for International Development, or 

22 the Millennium Challenge Corporation that are available 

23 for obligation on or after the date of enactment of this 

24 Act may be obligated or expended to support any project, 


ssavage on LAPJG3WLY3PROD with BILLS
12 

•S 4406 IS

1 transaction, or other activity that supports the production 

2 or use of fossil fuels. 

3 SEC. 115. TRANSPORTATION FUNDS FOR GRANTS, LOANS, 

4 LOAN GUARANTEES, AND OTHER DIRECT AS5 SISTANCE. 

6 Notwithstanding any other provision of law, any 

7 amounts made available to the Department of Transpor8 tation (including the Federal Railroad Administration) 

9 may not be used to award any grant, loan, loan guarantee, 

10 or provide any other direct assistance to any rail facility 

11 or port project that transports fossil fuel. 

12 SEC. 116. ELIMINATION OF EXCLUSION OF CERTAIN LEND13 ERS AS OWNERS OR OPERATORS UNDER 

14 CERCLA. 

15 Section 101(20)(F) of the Comprehensive Environ16 mental Response, Compensation, and Liability Act of 

17 1980 (42 U.S.C. 9601(20)(F)) is amended by adding at 

18 the end the following: 

19 ‘‘(iii) INELIGIBLE LENDERS.—The ex20 clusions under clauses (i) and (ii) shall not 

21 apply to a person that is a lender that is— 

22 ‘‘(I) an investment company reg23 istered under the Investment Com24 pany Act of 1940 (15 U.S.C. 80a–1 et 

25 seq.), an investment adviser (as deVerDate Sep 11 2014 18:57 Jul 17, 2024 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4406.IS S4406

ssavage on LAPJG3WLY3PROD with BILLS
13 

•S 4406 IS

1 fined in section 202(a) of the Invest2 ment Advisers Act of 1940 (15 U.S.C. 

3 80b–2(a))), or a broker or dealer (as 

4 those terms are defined in section 

5 3(a) of the Securities Exchange Act of 

6 1934 (15 U.S.C. 78c(a))) with 

7 $250,000,000,000 or more in assets 

8 under management; or 

9 ‘‘(II) a bank holding company (as 

10 defined in section 2 of the Bank Hold11 ing Company Act of 1956 (12 U.S.C. 

12 1841)) with $10,000,000,000 or more 

13 in total consolidated assets.’’. 

14 SEC. 117. POWDER RIVER BASIN. 

15 (a) DESIGNATION OF THE POWDER RIVER BASIN AS

16 A COAL PRODUCING REGION.—As soon as practicable 

17 after the date of enactment of this Act, the Director of 

18 the Bureau of Land Management shall designate the Pow19 der River Basin as a coal producing region. 

20 (b) REPORT.—Not later than 1 year after the date 

21 of enactment of this Act, the Director of the Bureau of 

22 Land Management shall submit to Congress a report that 

23 includes— 

24 (1) a study of the fair market value and the 

25 amount and effective rate of royalties paid on coal 


ssavage on LAPJG3WLY3PROD with BILLS
14 

•S 4406 IS

1 leases in the Powder River Basin compared to other 

2 national and international coal basins and markets; 

3 and 

4 (2) any policy recommendations to capture the 

5 future market value of the coal leases in the Powder 

6 River Basin. 

7 TITLE II—AMENDMENTS TO IN8 TERNAL REVENUE CODE OF 

9 1986 

10 SEC. 201. TERMINATION OF VARIOUS TAX EXPENDITURES 

11 RELATING TO FOSSIL FUELS. 

12 (a) IN GENERAL.—Subchapter C of chapter 80 of the 

13 Internal Revenue Code of 1986 is amended by adding at 

14 the end the following new section: 

15 ‘‘SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELAT16 ING TO FOSSIL-FUEL INCENTIVES. 

17 ‘‘(a) IN GENERAL.—The following provisions shall 

18 not apply to taxable years beginning after the date of the 

19 enactment of the End Polluter Welfare Act of 2024: 

20 ‘‘(1) Section 43 (relating to enhanced oil recov21 ery credit). 

22 ‘‘(2) Section 45I (relating to credit for pro23 ducing oil and natural gas from marginal wells). 

24 ‘‘(3) Section 461(i)(2) (relating to special rule 

25 for spudding of oil or natural gas wells). 


ssavage on LAPJG3WLY3PROD with BILLS
15 

•S 4406 IS

1 ‘‘(4) Section 469(c)(3)(A) (relating to working 

2 interests in oil and natural gas property). 

3 ‘‘(5) Section 613A (relating to limitations on 

4 percentage depletion in case of oil and natural gas 

5 wells). 

6 ‘‘(b) PROVISIONS RELATING TO PROPERTY.—The 

7 following provisions shall not apply to property placed in 

8 service after the date of the enactment of the End Polluter 

9 Welfare Act of 2024: 

10 ‘‘(1) Section 168(e)(3)(C)(iii) (relating to clas11 sification of certain property). 

12 ‘‘(2) Section 169 (relating to amortization of 

13 pollution control facilities) with respect to any at14 mospheric pollution control facility. 

15 ‘‘(c) PROVISIONS RELATING TO COSTS AND EX16 PENSES.—The following provisions shall not apply to costs 

17 or expenses paid or incurred after the date of the enact18 ment of the End Polluter Welfare Act of 2024: 

19 ‘‘(1) Section 179B (relating to deduction for 

20 capital costs incurred in complying with Environ21 mental Protection Agency sulfur regulations). 

22 ‘‘(2) Section 468 (relating to special rules for 

23 mining and solid waste reclamation and closing 

24 costs). 


ssavage on LAPJG3WLY3PROD with BILLS
16 

•S 4406 IS

1 ‘‘(d) ALLOCATED CREDITS.—No new credits shall be 

2 certified under section 48A (relating to qualifying ad3 vanced coal project credit) after the date of the enactment 

4 of the End Polluter Welfare Act of 2024. 

5 ‘‘(e) ARBITRAGE BONDS.—Section 148(b)(4) (relat6 ing to safe harbor for prepaid natural gas) shall not apply 

7 to obligations issued after the date of the enactment of 

8 the End Polluter Welfare Act of 2024.’’. 

9 (b) CONFORMING AMENDMENTS.— 

10 (1) Section 613(d) of the Internal Revenue 

11 Code of 1986 is amended by striking ‘‘Except as 

12 provided in section 613A, in the case’’ and inserting 

13 ‘‘In the case’’. 

14 (2) The table of sections for subchapter C of 

15 chapter 90 of such Code is amended by adding at 

16 the end the following new item: 

‘‘Sec. 7875. Termination of certain provisions relating to fossil-fuel incentives.’’. 

17 SEC. 202. TERMINATION OF CERTAIN DEDUCTIONS AND 

18 CREDITS RELATED TO FOSSIL FUELS. 

19 (a) SPECIAL ALLOWANCE FOR CERTAIN PROP20 ERTY.—Section 168(k) of the Internal Revenue Code of 

21 1986 is amended by adding at the end the following: 

22 ‘‘(11) FOSSIL FUEL PROPERTY.— 

23 ‘‘(A) IN GENERAL.—This subsection shall 

24 not apply with respect to any property which is 

25 primarily used for fossil fuel activities and is 


ssavage on LAPJG3WLY3PROD with BILLS
17 

•S 4406 IS

1 placed in service during any taxable year begin2 ning after the date of the enactment of the End 

3 Polluter Welfare Act of 2024. 

4 ‘‘(B) FOSSIL FUEL ACTIVITIES.—For pur5 poses of this paragraph, the term ‘fossil fuel ac6 tivities’ means the exploration, development, 

7 mining or production, processing, refining, 

8 transportation (including pipelines transporting 

9 gas, oil, or products thereof), distribution, or 

10 marketing of coal, petroleum, natural gas, or 

11 any derivative of coal, petroleum, or natural gas 

12 that is used for fuel. 

13 ‘‘(C) EXCEPTION.—The property described 

14 in subparagraph (A) shall not include any 

15 motor vehicle service station or convenience 

16 store which does not qualify as a retail motor 

17 fuels outlet under subsection (e)(3)(E)(iii).’’. 

18 (b) QUALIFIED BUSINESS INCOME.—Section 

19 199A(c)(3)(B) of the Internal Revenue Code of 1986 is 

20 amended by adding at the end the following: 

21 ‘‘(viii) Any item of gain or loss de22 rived from fossil fuel activities (as defined 

23 in section 168(k)(11)(B)) during any tax24 able year beginning after the date of the 


ssavage on LAPJG3WLY3PROD with BILLS
18 

•S 4406 IS

1 enactment of the End Polluter Welfare Act 

2 of 2024.’’. 

3 (c) CREDIT FOR INCREASING RESEARCH ACTIVI4 TIES.—Section 41(d)(4) of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following: 

6 ‘‘(I) FOSSIL FUEL ACTIVITIES.—Any re7 search related to fossil fuel activities (as defined 

8 in section 168(k)(11)(B)) which is conducted 

9 after the date of the enactment of the End Pol10 luter Welfare Act of 2024.’’. 

11 (d) FOREIGN-DERIVED INTANGIBLE INCOME.—Sub12 clause (V) of section 250(b)(3)(A)(i) of the Internal Rev13 enue Code of 1986 is amended to read as follows: 

14 ‘‘(V) any income derived from 

15 fossil fuel activities (as defined in sec16 tion 168(k)(11)(B)) during any tax17 able year beginning after the date of 

18 the enactment of the End Polluter 

19 Welfare Act of 2024, and’’. 

20 (e) EXCHANGE OF REAL PROPERTY HELD FOR PRO21 DUCTIVE USE OR INVESTMENT.—Section 1031(a)(2) of 

22 the Internal Revenue Code of 1986 is amended to read 

23 as follows: 

24 ‘‘(2) EXCEPTIONS.—This subsection shall not 

25 apply to— 


ssavage on LAPJG3WLY3PROD with BILLS
19 

•S 4406 IS

1 ‘‘(A) any exchange of real property held 

2 primarily for sale, or 

3 ‘‘(B) any exchange of real property 

4 which— 

5 ‘‘(i) is used for fossil fuel activities (as 

6 defined in section 168(k)(11)(B)), and 

7 ‘‘(ii) occurs after the date of the en8 actment of the End Polluter Welfare Act 

9 of 2024.’’. 

10 SEC. 203. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEO11 LOGICAL AND GEOPHYSICAL EXPENDITURES. 

12 (a) IN GENERAL.—Section 167(h) of the Internal 

13 Revenue Code of 1986 is amended— 

14 (1) by striking ‘‘24-month period’’ each place it 

15 appears in paragraphs (1) and (4) and inserting 

16 ‘‘84-month period’’, 

17 (2) by striking paragraph (2) and inserting the 

18 following: 

19 ‘‘(2) MID-MONTH CONVENTION.—For purposes 

20 of paragraph (1), any payment paid or incurred dur21 ing any month shall be treated as paid or incurred 

22 on the mid-point of such month.’’, and 

23 (3) by striking paragraph (5). 


ssavage on LAPJG3WLY3PROD with BILLS
20 

•S 4406 IS

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

2 this section shall apply to amounts paid or incurred after 

3 the date of the enactment of this Act. 

4 SEC. 204. NATURAL GAS GATHERING LINES TREATED AS 15- 

5 YEAR PROPERTY. 

6 (a) IN GENERAL.—Section 168(e)(3)(E) of the Inter7 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

8 at the end of clause (vi), by striking the period at the end 

9 of clause (vii) and inserting ‘‘, and’’, and by adding at 

10 the end the following new clause: 

11 ‘‘(viii) any natural gas gathering line 

12 the original use of which commences with 

13 the taxpayer after the date of the enact14 ment of this clause.’’. 

15 (b) ALTERNATIVE SYSTEM.—The table contained in 

16 section 168(g)(3)(B) of the Internal Revenue Code of 

17 1986 is amended by inserting after the item relating to 

18 subparagraph (E)(vii) the following new item: 

‘‘(E)(viii) ................................................................................................. 22’’. 

19 (c) CONFORMING AMENDMENT.—Clause (iv) of sec20 tion 168(e)(3)(C) of the Internal Revenue Code of 1986 

21 is amended by inserting ‘‘and on or before the date of the 

22 enactment of the End Polluter Welfare Act of 2024’’ after 

23 ‘‘April 11, 2005’’. 

24 (d) EFFECTIVE DATE.— 


ssavage on LAPJG3WLY3PROD with BILLS
21 

•S 4406 IS

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

2 this section shall apply to property placed in service 

3 on and after the date of the enactment of this Act. 

4 (2) EXCEPTION.—The amendments made by 

5 this section shall not apply to any property with re6 spect to which the taxpayer or a related party has 

7 entered into a binding contract for the construction 

8 thereof on or before the date of the introduction of 

9 this Act, or, in the case of self-constructed property, 

10 has started construction on or before such date. 

11 SEC. 205. TERMINATION OF LAST-IN, FIRST-OUT METHOD 

12 OF INVENTORY FOR OIL, NATURAL GAS, AND 

13 COAL COMPANIES. 

14 (a) IN GENERAL.—Section 472 of the Internal Rev15 enue Code of 1986 is amended by adding at the end the 

16 following new subsection: 

17 ‘‘(h) TERMINATION FOR OIL, NATURAL GAS, AND

18 COAL COMPANIES.—Subsection (a) shall not apply to any 

19 taxpayer that is in the trade or business of the production, 

20 refining, processing, transportation, or distribution of oil, 

21 natural gas, or coal for any taxable year beginning after 

22 the date of enactment of the End Polluter Welfare Act 

23 of 2024.’’. 


ssavage on LAPJG3WLY3PROD with BILLS
22 

•S 4406 IS

1 (b) ADDITIONAL TERMINATION.—Section 473 of the 

2 Internal Revenue Code of 1986 is amended by adding at 

3 the end the following new subsection: 

4 ‘‘(h) TERMINATION FOR OIL, NATURAL GAS, AND

5 COAL COMPANIES.—This section shall not apply to any 

6 taxpayer that is in the trade or business of the production, 

7 refining, processing, transportation, or distribution of oil, 

8 natural gas, or coal for any taxable year beginning after 

9 the date of enactment of the End Polluter Welfare Act 

10 of 2024.’’. 

11 (c) CHANGE IN METHOD OF ACCOUNTING.—In the 

12 case of any taxpayer required by the amendments made 

13 by this section to change its method of accounting for its 

14 first taxable year beginning after the date of enactment 

15 of this Act— 

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

17 the taxpayer, and 

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

19 the consent of the Secretary of the Treasury. 

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

21 this section shall apply to taxable years beginning after 

22 the date of enactment of this Act. 


ssavage on LAPJG3WLY3PROD with BILLS
23 

•S 4406 IS

1 SEC. 206. REPEAL OF PERCENTAGE DEPLETION FOR COAL 

2 AND HARD MINERAL FOSSIL FUELS. 

3 (a) IN GENERAL.—Section 613 of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(f) TERMINATION WITH RESPECT TO COAL AND

7 HARD MINERAL FOSSIL FUELS.—In the case of coal, lig8 nite, and oil shale (other than oil shale described in sub9 section (b)(5)), the allowance for depletion shall be com10 puted without reference to this section for any taxable 

11 year beginning after the date of the enactment of the End 

12 Polluter Welfare Act of 2024.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) COAL AND LIGNITE.—Section 613(b)(4) of 

15 the Internal Revenue Code of 1986 is amended by 

16 striking ‘‘coal, lignite,’’. 

17 (2) OIL SHALE.—Section 613(b)(2) of such 

18 Code is amended to read as follows: 

19 ‘‘(2) 15 PERCENT.—If, from deposits in the 

20 United States, gold, silver, copper, and iron ore.’’. 

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

22 this section shall apply to taxable years beginning after 

23 the date of the enactment of this Act. 


ssavage on LAPJG3WLY3PROD with BILLS
24 

•S 4406 IS

1 SEC. 207. TERMINATION OF CAPITAL GAINS TREATMENT 

2 FOR ROYALTIES FROM COAL. 

3 (a) IN GENERAL.—Subsection (c) of section 631 of 

4 the Internal Revenue Code of 1986 is amended— 

5 (1) by striking ‘‘coal (including lignite), or iron 

6 ore’’ and inserting ‘‘iron ore’’, 

7 (2) by striking ‘‘coal or iron ore’’ each place it 

8 appears and inserting ‘‘iron ore’’, 

9 (3) by striking ‘‘iron ore or coal’’ each place it 

10 appears and inserting ‘‘iron ore’’, and 

11 (4) by striking ‘‘COAL OR’’ in the heading. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) The heading of section 631 of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘, 

15 COAL,’’. 

16 (2) Section 1231(b)(2) of such Code is amend17 ed by striking ‘‘, coal,’’. 

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

19 this section shall apply to dispositions after the date of 

20 the enactment of this Act. 

21 SEC. 208. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

22 APPLICABLE TO OIL AND GAS INDUSTRY TAX23 PAYERS RECEIVING SPECIFIC ECONOMIC 

24 BENEFITS. 

25 (a) IN GENERAL.—Section 901 of the Internal Rev26 enue Code of 1986 is amended by redesignating subsection 


ssavage on LAPJG3WLY3PROD with BILLS
25 

•S 4406 IS

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

2 the following new subsection: 

3 ‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY

4 TAXPAYERS.— 

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

6 other provision of this chapter, any amount paid or 

7 accrued to a foreign country or possession of the 

8 United States for any period by a dual capacity tax9 payer which is in the trade or business of the pro10 duction, refining, processing, transportation, or dis11 tribution of fossil fuel shall not be considered a 

12 tax— 

13 ‘‘(A) if, for such period, the foreign coun14 try or possession does not impose a generally 

15 applicable income tax, or 

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

17 the amount (determined in accordance with reg18 ulations) which— 

19 ‘‘(i) is paid by such dual capacity tax20 payer pursuant to the generally applicable 

21 income tax imposed by the country or pos22 session, or 

23 ‘‘(ii) would be paid if no amount other 

24 than the amount required to be paid by 

25 such taxpayer under the generally applicaVerDate Sep 11 2014 18:57 Jul 17, 2024 Jkt 049200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S4406.IS S4406

ssavage on LAPJG3WLY3PROD with BILLS
26 

•S 4406 IS

1 ble income tax imposed by the country or 

2 possession were paid or accrued by such 

3 dual capacity taxpayer. 

4 Nothing in this paragraph shall be construed to 

5 imply the proper treatment of any such amount 

6 not in excess of the amount determined under 

7 subparagraph (B). 

8 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur9 poses of this subsection, the term ‘dual capacity tax10 payer’ means, with respect to any foreign country or 

11 possession of the United States, a person who— 

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

13 possession, and 

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

15 indirectly a specific economic benefit (as deter16 mined in accordance with regulations) from 

17 such country or possession. 

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

19 For purposes of this subsection— 

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

21 applicable income tax’ means an income tax (or 

22 a series of income taxes) which is generally im23 posed under the laws of a foreign country or 

24 possession on income derived from the conduct 


ssavage on LAPJG3WLY3PROD with BILLS
27 

•S 4406 IS

1 of a trade or business within such country or 

2 possession. 

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

4 include a tax unless it has substantial applica5 tion, by its terms and in practice, to— 

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

7 taxpayers, and 

8 ‘‘(ii) persons who are— 

9 ‘‘(I) citizens or residents of the 

10 foreign country or possession, or 

11 ‘‘(II) organized or incorporated 

12 under the laws of the foreign country 

13 or possession. 

14 ‘‘(4) FOSSIL FUEL.—For purposes of this sub15 section, the term ‘fossil fuel’ means coal, petroleum, 

16 natural gas, or any derivative of coal, petroleum, or 

17 natural gas that is used for fuel.’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxes paid or accrued in taxable 

20 years beginning after the date of the enactment of this 

21 Act. 

22 (c) SPECIAL RULE FOR TREATIES.—Notwith23 standing sections 894 or 7852(d) of the Internal Revenue 

24 Code of 1986, the amendments made by this section shall 


ssavage on LAPJG3WLY3PROD with BILLS
28 

•S 4406 IS

1 apply without regard to any treaty obligation of the 

2 United States. 

3 SEC. 209. INCREASE IN OIL SPILL LIABILITY TRUST FUND 

4 FINANCING RATE. 

5 (a) IN GENERAL.—Section 4611 of the Internal Rev6 enue Code of 1986 is amended— 

7 (1) in subsection (c)(2)(B)— 

8 (A) in clause (i), by striking ‘‘and’’ at the 

9 end, 

10 (B) in clause (ii), by striking the period at 

11 the end and inserting ‘‘, and’’, and 

12 (C) by adding at the end the following: 

13 ‘‘(iii) in the case of crude oil received 

14 or petroleum products entered after De15 cember 31, 2024, 10 cents a barrel.’’, and 

16 (2) by striking subsection (f) and inserting the 

17 following: 

18 ‘‘(f) APPLICATION OF OIL SPILL LIABILITY TRUST

19 FUND FINANCING RATE.—The Oil Spill Liability Trust 

20 Fund financing rate under subsection (c) shall apply on 

21 and after April 1, 2006, or if later, the date which is 30 

22 days after the last day of any calendar quarter for which 

23 the Secretary estimates that, as of the close of that quar24 ter, the unobligated balance in the Oil Spill Liability Trust 

25 Fund is less than $2,000,000,000.’’. 


ssavage on LAPJG3WLY3PROD with BILLS
29 

•S 4406 IS

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

2 this section shall apply to crude oil received and petroleum 

3 products entered after December 31, 2024. 

4 SEC. 210. APPLICATION OF CERTAIN ENVIRONMENTAL 

5 TAXES TO SYNTHETIC CRUDE OIL. 

6 (a) IN GENERAL.—Paragraph (1) of section 4612(a) 

7 of the Internal Revenue Code of 1986 is amended to read 

8 as follows: 

9 ‘‘(1) CRUDE OIL.— 

10 ‘‘(A) IN GENERAL.—The term ‘crude oil’ 

11 includes crude oil condensates, natural gasoline, 

12 and synthetic crude oil. 

13 ‘‘(B) SYNTHETIC CRUDE OIL.—For pur14 poses of subparagraph (A), the term ‘synthetic 

15 crude oil’ means— 

16 ‘‘(i) any bitumen and bituminous mix17 tures, 

18 ‘‘(ii) any oil derived from bitumen and 

19 bituminous mixtures (including oil derived 

20 from tar sands), 

21 ‘‘(iii) any liquid fuel derived from 

22 coal, and 

23 ‘‘(iv) any oil derived from kerogen24 bearing sources (including oil derived from 

25 oil shale).’’. 


ssavage on LAPJG3WLY3PROD with BILLS
30 

•S 4406 IS

1 (b) REGULATORY AUTHORITY TO ADDRESS OTHER

2 TYPES OF CRUDE OIL AND PETROLEUM PRODUCTS.— 

3 Subsection (a) of section 4612 of the Internal Revenue 

4 Code of 1986 is amended by adding at the end the fol5 lowing: 

6 ‘‘(10) REGULATORY AUTHORITY TO ADDRESS

7 OTHER TYPES OF CRUDE OIL AND PETROLEUM

8 PRODUCTS.—Under such regulations as the Sec9 retary may prescribe, the Secretary may include as 

10 crude oil or as a petroleum product subject to tax 

11 under section 4611, any fuel feedstock or finished 

12 fuel product customarily transported by pipeline, 

13 vessel, railcar, or tanker truck if the Secretary deter14 mines that— 

15 ‘‘(A) the classification of such fuel feed16 stock or finished fuel product is consistent with 

17 the definition of oil under the Oil Pollution Act 

18 of 1990, and 

19 ‘‘(B) such fuel feedstock or finished fuel 

20 product is produced in sufficient commercial 

21 quantities as to pose a significant risk of haz22 ard in the event of a discharge.’’. 

23 (c) TECHNICAL AMENDMENT.—Paragraph (2) of sec24 tion 4612(a) of the Internal Revenue Code of 1986 is 

25 amended by striking ‘‘from a well located’’. 


ssavage on LAPJG3WLY3PROD with BILLS
31 

•S 4406 IS

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

2 this section shall apply to oil and petroleum products re3 ceived or entered during calendar quarters beginning more 

4 than 60 days after the date of the enactment of this Act. 

5 SEC. 211. DENIAL OF DEDUCTION FOR REMOVAL COSTS 

6 AND DAMAGES FOR CERTAIN OIL SPILLS. 

7 (a) IN GENERAL.—Section 162(f) of the Internal 

8 Revenue Code of 1986 is amended— 

9 (1) by redesignating paragraph (5) as para10 graph (6), and 

11 (2) by inserting after paragraph (4) the fol12 lowing: 

13 ‘‘(5) EXPENSES FOR REMOVAL COSTS AND

14 DAMAGES RELATING TO CERTAIN OIL SPILL LIABIL15 ITY.—Notwithstanding paragraphs (2) and (3), no 

16 deduction shall be allowed under this chapter for any 

17 costs or damages for which the taxpayer is liable 

18 under section 1002 of the Oil Pollution Act of 1990 

19 (33 U.S.C. 2702)’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply with respect to any liability arising 

22 in taxable years ending after the date of the enactment 

23 of this Act. 


ssavage on LAPJG3WLY3PROD with BILLS
32 

•S 4406 IS

1 SEC. 212. TAX ON CRUDE OIL AND NATURAL GAS PRO2 DUCED FROM THE OUTER CONTINENTAL 

3 SHELF IN THE GULF OF MEXICO. 

4 (a) IN GENERAL.—Subtitle E of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new chapter: 

7 ‘‘CHAPTER 56—TAX ON SEVERANCE OF 

8 CRUDE OIL AND NATURAL GAS FROM 

9 THE OUTER CONTINENTAL SHELF IN 

10 THE GULF OF MEXICO 

‘‘Sec. 5901. Imposition of tax. 

‘‘Sec. 5902. Taxable crude oil or natural gas and removal price. 

‘‘Sec. 5903. Special rules and definitions. 

11 ‘‘SEC. 5901. IMPOSITION OF TAX. 

12 ‘‘(a) IN GENERAL.—In addition to any other tax im13 posed under this title, there is hereby imposed a tax equal 

14 to 13 percent of the removal price of any taxable crude 

15 oil or natural gas removed from the premises during any 

16 taxable period. 

17 ‘‘(b) CREDIT FOR FEDERAL ROYALTIES PAID.— 

18 ‘‘(1) IN GENERAL.—There shall be allowed as a 

19 credit against the tax imposed by subsection (a) with 

20 respect to the production of any taxable crude oil or 

21 natural gas an amount equal to the aggregate 

22 amount of royalties paid under Federal law with re23 spect to such production. 


ssavage on LAPJG3WLY3PROD with BILLS
33 

•S 4406 IS

1 ‘‘(2) LIMITATION.—The aggregate amount of 

2 credits allowed under paragraph (1) to any taxpayer 

3 for any taxable period shall not exceed the amount 

4 of tax imposed by subsection (a) for such taxable pe5 riod. 

6 ‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 

7 this section shall be paid by the producer of the taxable 

8 crude oil or natural gas. 

9 ‘‘SEC. 5902. TAXABLE CRUDE OIL OR NATURAL GAS AND RE10 MOVAL PRICE. 

11 ‘‘(a) TAXABLE CRUDE OIL OR NATURAL GAS.—For 

12 purposes of this chapter, the term ‘taxable crude oil or 

13 natural gas’ means crude oil or natural gas which is pro14 duced from Federal submerged lands on the outer Conti15 nental Shelf in the Gulf of Mexico pursuant to a lease 

16 entered into with the United States which authorizes the 

17 production. 

18 ‘‘(b) REMOVAL PRICE.—For purposes of this chap19 ter— 

20 ‘‘(1) IN GENERAL.—Except as otherwise pro21 vided in this subsection, the term ‘removal price’ 

22 means— 

23 ‘‘(A) in the case of taxable crude oil, the 

24 amount for which a barrel of such crude oil is 

25 sold, and 


ssavage on LAPJG3WLY3PROD with BILLS
34 

•S 4406 IS

1 ‘‘(B) in the case of taxable natural gas, the 

2 amount per 1,000 cubic feet for which such 

3 natural gas is sold. 

4 ‘‘(2) SALES BETWEEN RELATED PERSONS.—In 

5 the case of a sale between related persons, the re6 moval price shall not be less than the constructive 

7 sales price for purposes of determining gross income 

8 from the property under section 613. 

9 ‘‘(3) OIL OR NATURAL GAS REMOVED FROM

10 PROPERTY BEFORE SALE.—If crude oil or natural 

11 gas is removed from the property before it is sold, 

12 the removal price shall be the constructive sales 

13 price for purposes of determining gross income from 

14 the property under section 613. 

15 ‘‘(4) REFINING BEGUN ON PROPERTY.—If the 

16 manufacture or conversion of crude oil into refined 

17 products begins before such oil is removed from the 

18 property— 

19 ‘‘(A) such oil shall be treated as removed 

20 on the day such manufacture or conversion be21 gins, and 

22 ‘‘(B) the removal price shall be the con23 structive sales price for purposes of determining 

24 gross income from the property under section 

25 613. 


ssavage on LAPJG3WLY3PROD with BILLS
35 

•S 4406 IS

1 ‘‘(5) PROPERTY.—The term ‘property’ has the 

2 meaning given such term by section 614. 

3 ‘‘SEC. 5903. SPECIAL RULES AND DEFINITIONS. 

4 ‘‘(a) ADMINISTRATIVE REQUIREMENTS.— 

5 ‘‘(1) WITHHOLDING AND DEPOSIT OF TAX.— 

6 The Secretary shall provide for the withholding and 

7 deposit of the tax imposed under section 5901 on a 

8 quarterly basis. 

9 ‘‘(2) RECORDS AND INFORMATION.—Each tax10 payer liable for tax under section 5901 shall keep 

11 such records, make such returns, and furnish such 

12 information (to the Secretary and to other persons 

13 having an interest in the taxable crude oil or natural 

14 gas) with respect to such oil as the Secretary may 

15 by regulations prescribe. 

16 ‘‘(3) TAXABLE PERIODS; RETURN OF TAX.— 

17 ‘‘(A) TAXABLE PERIOD.—Except as pro18 vided by the Secretary, each calendar year shall 

19 constitute a taxable period. 

20 ‘‘(B) RETURNS.—The Secretary shall pro21 vide for the filing, and the time for filing, of the 

22 return of the tax imposed under section 5901. 

23 ‘‘(b) DEFINITIONS.—For purposes of this chapter— 


ssavage on LAPJG3WLY3PROD with BILLS
36 

•S 4406 IS

1 ‘‘(1) PRODUCER.—The term ‘producer’ means 

2 the holder of the economic interest with respect to 

3 the crude oil or natural gas. 

4 ‘‘(2) CRUDE OIL.—The term ‘crude oil’ includes 

5 crude oil condensates and natural gasoline. 

6 ‘‘(3) PREMISES AND CRUDE OIL PRODUCT.— 

7 The terms ‘premises’ and ‘crude oil product’ have 

8 the same meanings as when used for purposes of de9 termining gross income from the property under sec10 tion 613. 

11 ‘‘(c) ADJUSTMENT OF REMOVAL PRICE.—In deter12 mining the removal price of oil or natural gas from a prop13 erty in the case of any transaction, the Secretary may ad14 just the removal price to reflect clearly the fair market 

15 value of oil or natural gas removed. 

16 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

17 such regulations as may be necessary or appropriate to 

18 carry out the purposes of this chapter.’’. 

19 (b) DEDUCTIBILITY OF TAX.—The first sentence of 

20 section 164(a) of the Internal Revenue Code of 1986 is 

21 amended by inserting after paragraph (4) the following 

22 new paragraph: 

23 ‘‘(5) The tax imposed by section 5901(a) (after 

24 application of section 5901(b)) on the severance of 


ssavage on LAPJG3WLY3PROD with BILLS
37 

•S 4406 IS

1 crude oil or natural gas from the outer Continental 

2 Shelf in the Gulf of Mexico.’’. 

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

4 for subtitle E is amended by adding at the end the fol5 lowing new item: 

‘‘CHAPTER 56. Tax on severance of crude oil and natural gas 

from the outer Continental Shelf in the Gulf of 

Mexico.’’. 

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

7 this section shall apply to crude oil or natural gas removed 

8 after December 31, 2024. 

9 SEC. 213. REPEAL OF CORPORATE INCOME TAX EXEMP10 TION FOR PUBLICLY TRADED PARTNERSHIPS 

11 WITH QUALIFYING INCOME AND GAINS FROM 

12 ACTIVITIES RELATING TO FOSSIL FUELS. 

13 (a) IN GENERAL.—Section 7704(d)(1) of the Inter14 nal Revenue Code of 1986 is amended by inserting ‘‘or 

15 any coal, petroleum, natural gas, or any derivative of coal, 

16 petroleum, or natural gas that is used for fuel’’ after ‘‘sec17 tion 613(b)(7)’’. 

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

19 this section shall apply to taxable years beginning after 

20 the date of the enactment of this Act. 

21 SEC. 214. AMORTIZATION OF QUALIFIED TERTIARY 

22 INJECTANT EXPENSES. 

23 (a) IN GENERAL.—Section 193 of the Internal Rev24 enue Code of 1986 is amended— 


ssavage on LAPJG3WLY3PROD with BILLS
38 

•S 4406 IS

1 (1) by striking subsection (a) and inserting the 

2 following: 

3 ‘‘(a) AMORTIZATION OF QUALIFIED TERTIARY

4 INJECTANT EXPENSES.— 

5 ‘‘(1) IN GENERAL.—Any qualified tertiary 

6 injectant expenses paid or incurred by the taxpayer 

7 shall be allowed as a deduction ratably over the 84- 

8 month period beginning on the date that such ex9 pense was paid or incurred. 

10 ‘‘(2) MID-MONTH CONVENTION.—For purposes 

11 of paragraph (1), any expenses paid or incurred dur12 ing any month shall be treated as paid or incurred 

13 on the mid-point of such month.’’, and 

14 (2) by striking subsection (c) and inserting the 

15 following: 

16 ‘‘(c) EXCLUSIVE METHOD.—Except as provided in 

17 this section, no depreciation or amortization deduction 

18 shall be allowed with respect to qualified tertiary injectant 

19 expenses.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to expenses paid or incurred in 

22 taxable years beginning after the date of the enactment 

23 of this Act. 


ssavage on LAPJG3WLY3PROD with BILLS
39 

•S 4406 IS

1 SEC. 215. AMORTIZATION OF DEVELOPMENT EXPENDI2 TURES. 

3 (a) IN GENERAL.—Section 616 of the Internal Rev4 enue Code of 1986 is amended to read as follows: 

5 ‘‘SEC. 616. AMORTIZATION OF DEVELOPMENT EXPENDI6 TURES. 

7 ‘‘(a) IN GENERAL.—Any expenditures paid or in8 curred for the development of a mine or other natural de9 posit (other than an oil or gas well) if paid or incurred 

10 after the existence of ores or minerals in commercially 

11 marketable quantities has been disclosed shall be allowed 

12 as a deduction ratably over the 84-month period beginning 

13 on the date that such expenditure was paid or incurred. 

14 ‘‘(b) MID-MONTH CONVENTION.—For purposes of 

15 subsection (a), any expenditures paid or incurred during 

16 any month shall be treated as paid or incurred on the mid17 point of such month. 

18 ‘‘(c) EXCLUSIVE METHOD.—Except as provided in 

19 this section, no depreciation or amortization deduction 

20 shall be allowed with respect to expenditures described in 

21 subsection (a). 

22 ‘‘(d) TREATMENT UPON ABANDONMENT.—If any 

23 property with respect to which expenditures described in 

24 subsection (a) are paid or incurred is retired or abandoned 

25 during the 84-month period described in such subsection, 

26 no deduction shall be allowed on account of such retireVerDate Sep 11 2014 18:57 Jul 17, 2024 Jkt 049200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S4406.IS S4406

ssavage on LAPJG3WLY3PROD with BILLS
40 

•S 4406 IS

1 ment or abandonment and the amortization deduction 

2 under this section shall continue with respect to such pay3 ment.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) The item relating to section 616 in the table 

6 of sections for part I of subchapter I of chapter 1 

7 of the Internal Revenue Code of 1986 is amended to 

8 read as follows: 

‘‘Sec. 616. Amortization of development expenditures.’’. 

9 (2) Section 56(a)(2)(A) of such Code is amend10 ed by striking ‘‘616(a) or’’. 

11 (3) Section 59(e) of such Code is amended— 

12 (A) in paragraph (2)— 

13 (i) in subparagraph (C), by inserting 

14 ‘‘or’’ at the end, 

15 (ii) by striking subparagraph (D), and 

16 (iii) by redesignating subparagraph 

17 (E) as subparagraph (D), and 

18 (B) in paragraph (5)(A), by striking ‘‘, 

19 616(a),’’. 

20 (4) Section 263(a)(1) of such Code is amended 

21 by striking subparagraph (A). 

22 (5) Section 263A(c)(3) of such Code is amend23 ed by striking ‘‘616,’’. 

24 (6) Section 291(b) of such Code is amended— 


ssavage on LAPJG3WLY3PROD with BILLS
41 

•S 4406 IS

1 (A) in paragraph (1)(B), by striking 

2 ‘‘616(a) or’’, 

3 (B) in paragraph (2), by striking ‘‘, 

4 616(a),’’, and 

5 (C) in paragraph (3), by striking ‘‘, 

6 616(a),’’. 

7 (7) Section 312(n)(2)(B) of such Code is 

8 amended by striking ‘‘616(a) or’’. 

9 (8) Section 381(c) of such Code is amended by 

10 striking paragraph (10). 

11 (9) Section 1016(a) of such Code is amended 

12 by striking paragraph (9). 

13 (10) Section 1254(a)(1)(A)(i) of such Code is 

14 amended by striking ‘‘, 616,’’. 

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

16 this section shall apply to expenditures paid or incurred 

17 in taxable years beginning after the date of the enactment 

18 of this Act. 

19 SEC. 216. AMORTIZATION OF CERTAIN MINING EXPLO20 RATION EXPENDITURES. 

21 (a) IN GENERAL.—Section 617 of the Internal Rev22 enue Code of 1986 is amended to read as follows: 


ssavage on LAPJG3WLY3PROD with BILLS
42 

•S 4406 IS

1 ‘‘SEC. 617. AMORTIZATION OF CERTAIN MINING EXPLO2 RATION EXPENDITURES. 

3 ‘‘(a) IN GENERAL.—Any expenditures paid or in4 curred for the purpose of ascertaining the existence, loca5 tion, extent, or quality of any deposit of ore or other min6 eral, and paid or incurred before the beginning of the de7 velopment stage of the mine, shall be allowed as a deduc8 tion ratably over the 84-month period beginning on the 

9 date that such expense was paid or incurred. 

10 ‘‘(b) MID-MONTH CONVENTION.—For purposes of 

11 subsection (a), any expenditures paid or incurred during 

12 any month shall be treated as paid or incurred on the mid13 point of such month. 

14 ‘‘(c) EXCLUSIVE METHOD.—Except as provided in 

15 this section, no depreciation or amortization deduction 

16 shall be allowed with respect to expenditures described in 

17 subsection (a). 

18 ‘‘(d) TREATMENT UPON ABANDONMENT.—If any 

19 property with respect to which expenditures described in 

20 subsection (a) are paid or incurred is retired or abandoned 

21 during the 84-month period described in such subsection, 

22 no deduction shall be allowed on account of such retire23 ment or abandonment and the amortization deduction 

24 under this section shall continue with respect to such pay25 ment.’’. 

26 (b) CONFORMING AMENDMENTS.— 


ssavage on LAPJG3WLY3PROD with BILLS
43 

•S 4406 IS

1 (1) The item relating to section 617 in the table 

2 of sections for part I of subchapter I of chapter 1 

3 of the Internal Revenue Code of 1986 is amended to 

4 read as follows: 

‘‘Sec. 617. Amortization of certain mining exploration expenditures.’’. 

5 (2) Section 56(a) of such Code, as amended by 

6 section 215(b)(2), is amended by striking paragraph 

7 (2). 

8 (3) Section 59(e) of such Code, as amended by 

9 section 215(b)(3), is amended— 

10 (A) in paragraph (2)— 

11 (i) in subparagraph (B), by inserting 

12 ‘‘or’’ at the end, 

13 (ii) in subparagraph (C), by striking 

14 the comma at the end and inserting a pe15 riod, and 

16 (iii) by striking subparagraph (D), 

17 and 

18 (B) by striking paragraph (5) and insert19 ing the following: 

20 ‘‘(5) DISPOSITIONS.—In the case of any dis21 position of property to which section 1254 applies 

22 (determined without regard to this section), any de23 duction under paragraph (1) with respect to 

24 amounts which are allocable to such property shall, 


ssavage on LAPJG3WLY3PROD with BILLS
44 

•S 4406 IS

1 for purposes of section 1254, be treated as a deduc2 tion allowable under section 263(c).’’. 

3 (4) Section 170(e) of such Code is amended— 

4 (A) in paragraph (1), by striking 

5 ‘‘617(d)(1),’’, and 

6 (B) in paragraph (3)(D), by striking 

7 ‘‘617,’’. 

8 (5) Section 263A(c)(3) of such Code, as amend9 ed by section 215(b)(5), is amended by striking 

10 ‘‘291(b)(2), or 617’’ and inserting ‘‘or 291(b)(2)’’. 

11 (6) Section 291(b) of such Code, as amended by 

12 section 215(b)(6), is amended— 

13 (A) in the heading, by striking ‘‘AND MIN14 ERAL EXPLORATION AND DEVELOPMENT

15 COSTS’’, 

16 (B) by striking paragraph (1) and insert17 ing the following: 

18 ‘‘(1) IN GENERAL.—In the case of an inte19 grated oil company, the amount allowable as a de20 duction for any taxable year (determined without re21 gard to this section) under section 263(c) shall be 

22 reduced by 30 percent.’’, 

23 (C) in paragraph (2), by striking ‘‘or 

24 617(a) (as the case may be)’’, and 


ssavage on LAPJG3WLY3PROD with BILLS
45 

•S 4406 IS

1 (D) in paragraph (3), by striking ‘‘or 

2 617(a) (whichever is appropriate)’’. 

3 (7) Section 312(n), as amended by section 

4 215(b)(7), is amended by striking paragraph (2) and 

5 inserting the following: 

6 ‘‘(2) INTANGIBLE DRILLING COSTS.—Any 

7 amount allowable as a deduction under section 

8 263(c) in determining taxable income (other than 

9 costs incurred in connection with a nonproductive 

10 well)— 

11 ‘‘(A) shall be capitalized, and 

12 ‘‘(B) shall be allowed as a deduction rat13 ably over the 60-month period beginning with 

14 the month in which such amount was paid or 

15 incurred.’’. 

16 (8) Section 703(b) of such Code is amended— 

17 (A) in paragraph (1), by adding ‘‘or’’ at 

18 the end, 

19 (B) by striking paragraph (2), and 

20 (C) by redesignating paragraph (3) as 

21 paragraph (2). 

22 (9) Section 751(c) of such Code is amended— 

23 (A) by inserting ‘‘, as in effect on the day 

24 before the date of the enactment of the End 


ssavage on LAPJG3WLY3PROD with BILLS
46 

•S 4406 IS

1 Polluter Welfare Act of 2024’’ after ‘‘section 

2 617(f)(2)’’, and 

3 (B) by striking ‘‘617(d)(1),’’. 

4 (10) Section 1254(a)(1)(A)(i) of such Code, as 

5 amended by section 215(b)(10), is amended by strik6 ing ‘‘or 617’’. 

7 (11) Paragraph (2) of section 1363(c) of such 

8 Code is amended to read as follows: 

9 ‘‘(2) EXCEPTION.—In the case of an S corpora10 tion, elections under section 901 (relating to taxes of 

11 foreign countries and possessions of the United 

12 States) shall be made by each shareholder sepa13 rately.’’. 

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

15 this section shall apply to expenditures paid or incurred 

16 in taxable years beginning after the date of the enactment 

17 of this Act. 

18 SEC. 217. AMORTIZATION OF INTANGIBLE DRILLING AND 

19 DEVELOPMENT COSTS IN THE CASE OF OIL 

20 AND GAS WELLS. 

21 (a) IN GENERAL.—Subsection (c) of section 263 of 

22 the Internal Revenue Code of 1986 is amended to read 

23 as follows: 


ssavage on LAPJG3WLY3PROD with BILLS
47 

•S 4406 IS

1 ‘‘(c) INTANGIBLE DRILLING AND DEVELOPMENT

2 COSTS IN THE CASE OF OIL AND GAS WELLS AND GEO3 THERMAL WELLS.— 

4 ‘‘(1) GEOTHERMAL WELLS.—Notwithstanding 

5 subsection (a), and except as provided in subsection 

6 (i), a taxpayer may elect to deduct as expenses in7 tangible drilling and development costs in the case 

8 of wells drilled for any geothermal deposit (as de9 fined in section 613(e)(2)) in such manner as the 

10 Secretary provides. This subsection shall not apply 

11 with respect to any costs to which any deduction is 

12 allowed under section 59(e). 

13 ‘‘(2) OIL AND GAS WELLS.—Notwithstanding 

14 subsection (a), and except as provided in subsection 

15 (i), in the case of any expenses paid or incurred in 

16 taxable years beginning after the date of the enact17 ment of End Polluter Welfare Act of 2024 in con18 nection with intangible drilling and development 

19 costs related to oil and gas wells— 

20 ‘‘(A) such expenses shall be allowed as a 

21 deduction ratably over the 84-month period be22 ginning on the date that such expense was paid 

23 or incurred, 


ssavage on LAPJG3WLY3PROD with BILLS
48 

•S 4406 IS

1 ‘‘(B) any such expenses paid or incurred 

2 during any month shall be treated as paid or 

3 incurred on the mid-point of such month, 

4 ‘‘(C) except as provided in this paragraph, 

5 no depreciation or amortization deduction shall 

6 be allowed with respect to such expenses, and 

7 ‘‘(D) if any property with respect to which 

8 such intangible drilling and development costs 

9 are paid or incurred is retired or abandoned 

10 during such 84-month period, no deduction 

11 shall be allowed on account of such retirement 

12 or abandonment and the amortization deduction 

13 under this paragraph shall continue with re14 spect to such payment.’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Paragraph (2) of section 57(a) of the Inter17 nal Revenue Code of 1986 is amended to read as fol18 lows: 

19 ‘‘(2) INTANGIBLE DRILLING COSTS.— 

20 ‘‘(A) IN GENERAL.—With respect to all 

21 geothermal properties of the taxpayer, the 

22 amount (if any) by which the amount of the ex23 cess intangible drilling costs arising in the tax24 able year is greater than 65 percent of the net 


ssavage on LAPJG3WLY3PROD with BILLS
49 

•S 4406 IS

1 income of the taxpayer from geothermal prop2 erties for the taxable year. 

3 ‘‘(B) EXCESS INTANGIBLE DRILLING

4 COSTS.—For purposes of subparagraph (A), the 

5 amount of the excess intangible drilling costs 

6 arising in the taxable year is the excess of— 

7 ‘‘(i) the intangible drilling and devel8 opment costs paid or incurred in connec9 tion with geothermal wells (other than 

10 costs incurred in drilling a nonproductive 

11 well) allowable under section 263(c)(1) for 

12 the taxable year, over 

13 ‘‘(ii) the amount which would have 

14 been allowable for the taxable year if such 

15 costs had been capitalized and straight line 

16 recovery of intangibles (as defined in sub17 section (b)) had been used with respect to 

18 such costs. 

19 ‘‘(C) NET INCOME FROM GEOTHERMAL

20 PROPERTIES.—For purposes of subparagraph 

21 (A), the amount of the net income of the tax22 payer from geothermal properties for the tax23 able year is the excess of— 

24 ‘‘(i) the aggregate amount of gross in25 come (within the meaning of section 


ssavage on LAPJG3WLY3PROD with BILLS
50 

•S 4406 IS

1 613(a)) from all geothermal properties of 

2 the taxpayer received or accrued by the 

3 taxpayer during the taxable year, over 

4 ‘‘(ii) the amount of any deductions al5 locable to such properties reduced by the 

6 excess described in subparagraph (B) for 

7 such taxable year.’’. 

8 (2) Section 59(e) of such Code, as amended by 

9 sections 215 and 216, is amended— 

10 (A) in paragraph (2)(C), by striking ‘‘sec11 tion 263(c)’’ and inserting ‘‘section 263(c)(1)’’, 

12 and 

13 (B) in paragraph (5), by striking ‘‘section 

14 263(c)’’ and inserting ‘‘section 263(c)(1)’’. 

15 (3) Section 263A(c)(3) of such Code, as amend16 ed by sections 215 and 216, is amended— 

17 (A) in the heading, by striking ‘‘OIL AND

18 GAS’’ and inserting ‘‘GEOTHERMAL’’, and 

19 (B) by striking ‘‘263(c),’’ and inserting 

20 ‘‘263(c)(1)’’. 

21 (4) Section 291 of such Code, as amended by 

22 sections 215 and 216, is amended by striking sub23 section (b). 


ssavage on LAPJG3WLY3PROD with BILLS
51 

•S 4406 IS

1 (5) Section 312(n) of such Code, as amended 

2 by sections 215 and 216, is amended by striking 

3 ‘‘section 263(c),’’ and inserting ‘‘section 263(c)(1)’’. 

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

5 this section shall apply to expenditures paid or incurred 

6 in taxable years beginning after the date of the enactment 

7 of this Act. 

8 SEC. 218. INCREASE IN EXCISE TAX RATE FOR FUNDING OF 

9 BLACK LUNG DISABILITY TRUST FUND. 

10 (a) IN GENERAL.—Section 4121(b) of the Internal 

11 Revenue Code of 1986 is amended— 

12 (1) in paragraph (1), by striking ‘‘$1.10’’ and 

13 inserting ‘‘$1.38’’, and 

14 (2) in paragraph (2), by striking ‘‘$.55’’ and in15 serting ‘‘$0.69’’. 

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

17 this section shall apply on and after the first day of the 

18 first calendar month beginning after the date of the enact19 ment of this Act. 

20 SEC. 219. ELIMINATION OF RENEWABLE ELECTRICITY PRO21 DUCTION CREDIT ELIGIBILITY FOR REFINED 

22 COAL. 

23 (a) IN GENERAL.—Section 45 of the Internal Rev24 enue Code of 1986 is amended— 

25 (1) in subsection (b)(2)— 


ssavage on LAPJG3WLY3PROD with BILLS
52 

•S 4406 IS

1 (A) in the first sentence, by striking ‘‘, the 

2 8 cent amount’’ and all that follows through ‘‘in 

3 2002’’ and inserting ‘‘and the 8 cent amount in 

4 paragraph (1)’’, and 

5 (B) in the third sentence, by striking ‘‘In 

6 any other case, if an amount’’ and inserting ‘‘If 

7 the 8 cent amount’’, 

8 (2) in subsection (c), by striking paragraph (7), 

9 (3) in subsection (d), by striking paragraph (8), 

10 and 

11 (4) in subsection (e)— 

12 (A) by striking paragraph (8), and 

13 (B) by striking paragraph (9) and insert14 ing the following: 

15 ‘‘(9) COORDINATION WITH CREDIT FOR PRO16 DUCING FUEL FROM A NONCONVENTIONAL

17 SOURCE.—The term ‘qualified facility’ shall not in18 clude any facility which produces electricity from gas 

19 derived from the biodegradation of municipal solid 

20 waste if such biodegradation occurred in a facility 

21 (within the meaning of section 45K) the production 

22 from which is allowed as a credit under section 45K 

23 for the taxable year or any prior taxable year.’’. 

24 (b) CONFORMING AMENDMENTS.— 


ssavage on LAPJG3WLY3PROD with BILLS
53 

•S 4406 IS

1 (1) Section 38(c)(4)(B)(iv) of the Internal Rev2 enue Code of 1986 is amended by striking ‘‘or re3 fined coal’’. 

4 (2) Section 45K(g)(2) of such Code is amended 

5 by striking subparagraph (E). 

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

7 this section shall apply to coal produced after December 

8 31, 2024. 

9 SEC. 220. TREATMENT OF FOREIGN OIL RELATED INCOME 

10 AS SUBPART F INCOME. 

11 (a) IN GENERAL.—Section 954(a) of the Internal 

12 Revenue Code of 1986 is amended by striking ‘‘and’’ at 

13 the end of paragraph (2), by striking the period at the 

14 end of paragraph (3) and inserting ‘‘, and’’, and by adding 

15 at the end the following new paragraph: 

16 ‘‘(4) the foreign base company oil related in17 come for the taxable year (determined under sub18 section (f) and reduced as provided in subsection 

19 (b)(5)).’’. 

20 (b) FOREIGN BASE COMPANY OIL RELATED IN21 COME.—Section 954 of the Internal Revenue Code of 1986 

22 is amended by inserting after subsection (e) the following 

23 new subsection: 

24 ‘‘(f) FOREIGN BASE COMPANY OIL RELATED IN25 COME.—For purposes of this section— 


ssavage on LAPJG3WLY3PROD with BILLS
54 

•S 4406 IS

1 ‘‘(1) IN GENERAL.—Except as otherwise pro2 vided in this subsection, the term ‘foreign base com3 pany oil related income’ means foreign oil related in4 come (within the meaning of paragraphs (2) and (3) 

5 of section 907(c)) other than income derived from a 

6 source within a foreign country in connection with— 

7 ‘‘(A) oil or gas which was extracted from 

8 an oil or gas well located in such foreign coun9 try, or 

10 ‘‘(B) oil, gas, or a primary product of oil 

11 or gas which is sold by the foreign corporation 

12 or a related person for use or consumption 

13 within such country or is loaded in such coun14 try on a vessel or aircraft as fuel for such vessel 

15 or aircraft. 

16 Such term shall not include any foreign personal 

17 holding company income (as defined in subsection 

18 (c)). 

19 ‘‘(2) PARAGRAPH (1) APPLIES ONLY WHERE

20 CORPORATION HAS PRODUCED 1,000 BARRELS PER

21 DAY OR MORE.— 

22 ‘‘(A) IN GENERAL.—The term ‘foreign 

23 base company oil related income’ shall not in24 clude any income of a foreign corporation if 


ssavage on LAPJG3WLY3PROD with BILLS
55 

•S 4406 IS

1 such corporation is not a large oil producer for 

2 the taxable year. 

3 ‘‘(B) LARGE OIL PRODUCER.—For pur4 poses of subparagraph (A), the term ‘large oil 

5 producer’ means any corporation if, for the tax6 able year or for the preceding taxable year, the 

7 average daily production of foreign crude oil 

8 and natural gas of the related group which in9 cludes such corporation equaled or exceeded 

10 1,000 barrels. 

11 ‘‘(C) RELATED GROUP.—The term ‘related 

12 group’ means a group consisting of the foreign 

13 corporation and any other person who is a re14 lated person with respect to such corporation. 

15 ‘‘(D) AVERAGE DAILY PRODUCTION OF

16 FOREIGN CRUDE OIL AND NATURAL GAS.—For 

17 purposes of this paragraph, the average daily 

18 production of foreign crude oil or natural gas of 

19 any related group for any taxable year (and the 

20 conversion of cubic feet of natural gas into bar21 rels) shall be determined under rules similar to 

22 the rules of section 613A (as in effect on the 

23 day before the date of enactment of the End 

24 Polluter Welfare Act of 2024) except that only 

25 crude oil or natural gas from a well located outVerDate Sep 11 2014 18:57 Jul 17, 2024 Jkt 049200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S4406.IS S4406

ssavage on LAPJG3WLY3PROD with BILLS
56 

•S 4406 IS

1 side the United States shall be taken into ac2 count.’’. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) Section 952(c)(1)(B)(iii) of the Internal 

5 Revenue Code of 1986 is amended by redesignating 

6 subclauses (I) through (IV) as subclauses (II) 

7 through (V), respectively, and by inserting before 

8 subclause (II) (as so redesignated) the following: 

9 ‘‘(I) foreign base company oil re10 lated income,’’. 

11 (2) Section 954(b) of such Code is amended— 

12 (A) by inserting at the end of paragraph 

13 (4) the following: ‘‘The preceding sentence shall 

14 not apply to foreign base company oil-related 

15 income described in subsection (a)(4).’’, 

16 (B) by striking ‘‘and the foreign base com17 pany services income’’ in paragraph (5) and in18 serting ‘‘the foreign base company services in19 come, and the foreign base company oil related 

20 income’’, and 

21 (C) by adding at the end the following new 

22 paragraph: 

23 ‘‘(6) FOREIGN BASE COMPANY OIL RELATED IN24 COME NOT TREATED AS ANOTHER KIND OF BASE

25 COMPANY INCOME.—Income of a corporation which 


ssavage on LAPJG3WLY3PROD with BILLS
57 

•S 4406 IS

1 is foreign base company oil related income shall not 

2 be considered foreign base company income of such 

3 corporation under paragraph (2) or (3) of subsection 

4 (a).’’. 

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

6 this section shall apply to taxable years of foreign corpora7 tions beginning after the date of the enactment of this 

8 Act and to taxable years of United States shareholders 

9 ending with or within which such taxable years of foreign 

10 corporations end. 

11 SEC. 221. REPEAL OF EXCLUSION OF FOREIGN OIL AND 

12 GAS EXTRACTION INCOME FROM THE DETER13 MINATION OF TESTED INCOME. 

14 (a) IN GENERAL.—Section 951A(c)(2)(A)(i) of the 

15 Internal Revenue Code of 1986 is amended— 

16 (1) by adding ‘‘and’’ at the end of subclause 

17 (III), 

18 (2) by striking ‘‘and’’ at the end of subclause 

19 (IV) and inserting ‘‘over’’, and 

20 (3) by striking subclause (V). 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years of foreign corpora23 tions beginning after the date of enactment of this Act, 

24 and to taxable years of United States shareholders in 


ssavage on LAPJG3WLY3PROD with BILLS
58 

•S 4406 IS

1 which or with which such taxable years of foreign corpora2 tions end. 

3 SEC. 222. TERMINATION OF CREDIT FOR CARBON OXIDE 

4 SEQUESTRATION. 

5 (a) IN GENERAL.—Section 45Q of the Internal Rev6 enue Code of 1986 is amended by adding at the end the 

7 following: 

8 ‘‘(j) TERMINATION.—This section shall not apply 

9 with respect to any qualified carbon oxide captured after 

10 the date of enactment of the End Polluter Welfare Act 

11 of 2024.’’. 

12 (b) REPORT.— 

13 (1) IN GENERAL.—Not later than 6 months 

14 after the date of enactment of this Act, the Sec15 retary of the Treasury, or the Secretary’s delegate, 

16 shall submit a report to Congress, to be made avail17 able to the public, which provides the following infor18 mation: 

19 (A) The taxpayer identity information of 

20 any taxpayer for which the carbon oxide seques21 tration credit under section 45Q of the Internal 

22 Revenue Code of 1986 was allowed for any tax23 able year following the enactment of such sec24 tion. 


ssavage on LAPJG3WLY3PROD with BILLS
59 

•S 4406 IS

1 (B) The total amount of the credit allowed 

2 pursuant to such section to each taxpayer de3 scribed in subparagraph (A). 

4 (C) With respect to the amount described 

5 in subparagraph (B), the amount of such credit 

6 allowed with respect to each of the following: 

7 (i) Qualified carbon oxide which was 

8 captured and disposed of by the taxpayer 

9 in secure geological storage and not used 

10 by the taxpayer as described in clause (ii) 

11 or (iii). 

12 (ii) Qualified carbon oxide which was 

13 captured and used by the taxpayer as a 

14 tertiary injectant in a qualified enhanced 

15 oil or natural gas recovery project and dis16 posed of by the taxpayer in secure geologi17 cal storage. 

18 (iii) Qualified carbon oxide which was 

19 captured and utilized by the taxpayer in a 

20 manner described in section 45Q(f)(5) of 

21 the Internal Revenue Code of 1986. 

22 (2) EXCEPTION FROM RULES REGARDING CON23 FIDENTIALITY AND DISCLOSURE OF RETURNS AND

24 RETURN INFORMATION.—Section 6103(l) of the InVerDate Sep 11 2014 18:57 Jul 17, 2024 Jkt 049200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S4406.IS S4406

ssavage on LAPJG3WLY3PROD with BILLS
60 

•S 4406 IS

1 ternal Revenue Code of 1986 is amended by adding 

2 at the end the following: 

3 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

4 FOR PUBLIC REPORT ON CARBON OXIDE SEQUES5 TRATION CREDIT.—The Secretary may disclose tax6 payer identity information and return information to 

7 the extent the Secretary deems necessary for pur8 poses of the report issued pursuant to section 222 

9 of the End Polluter Welfare Act of 2024.’’. 

10 SEC. 223. ELIMINATE DRAWBACKS ON PETROLEUM TAXES. 

11 (a) IN GENERAL.—Section 313(j) of the Tariff Act 

12 of 1930 (19 U.S.C. 1313(j)) is amended by adding at the 

13 end the following new paragraph: 

14 ‘‘(7) No amount of any tax imposed on any merchan15 dise pursuant to section 4611 of the Internal Revenue 

16 Code of 1986 shall be eligible to be refunded as drawback 

17 under this subsection.’’. 

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

19 this section shall apply with respect to articles entered, 

20 or withdrawn from warehouse for consumption, on or after 

21 January 1, 2025. 

22 SEC. 224. MODIFYING CLEAN HYDROGEN PRODUCTION 

23 CREDIT. 

24 (a) IN GENERAL.—Section 45V of the Internal Rev25 enue Code of 1986 is amended— 


ssavage on LAPJG3WLY3PROD with BILLS
61 

•S 4406 IS

1 (1) in subsection (a), by striking paragraph (2) 

2 and inserting the following: 

3 ‘‘(2) $0.60.’’, 

4 (2) by striking subsection (b) and inserting the 

5 following: 

6 ‘‘(b) INFLATION ADJUSTMENT.—The $0.60 amount 

7 in subsection (a)(2) shall be adjusted by multiplying such 

8 amount by the inflation adjustment factor (as determined 

9 under section 45(e)(2), determined by substituting ‘2023’ 

10 for ‘1992’ in subparagraph (B) thereof) for the calendar 

11 year in which the qualified clean hydrogen is produced. 

12 If any amount as increased under the preceding sentence 

13 is not a multiple of 0.1 cent, such amount shall be rounded 

14 to the nearest multiple of 0.1 cent.’’, 

15 (3) in subsection (c)— 

16 (A) by striking paragraph (1), 

17 (B) in paragraph (2)— 

18 (i) by striking subparagraph (A) and 

19 inserting the following: 

20 ‘‘(A) DEFINITION.— 

21 ‘‘(i) IN GENERAL.—The term ‘quali22 fied clean hydrogen’ means hydrogen pro23 duced using an electrolyzer for which the 

24 electricity used is— 


ssavage on LAPJG3WLY3PROD with BILLS
62 

•S 4406 IS

1 ‘‘(I) produced at a facility 

2 which— 

3 ‘‘(aa) uses qualified renew4 able energy resources to produce 

5 such electricity, 

6 ‘‘(bb) was placed in service 

7 not greater than 36 months prior 

8 to the date on which the facility 

9 which produces such hydrogen 

10 was placed in service, and 

11 ‘‘(cc) is in the same region 

12 (as defined in the National 

13 Transmission Needs Study of the 

14 Department of Energy, dated Oc15 tober 30, 2023) as the facility 

16 which produces such hydrogen, 

17 and 

18 ‘‘(II) produced at the facility de19 scribed in subclause (I) not less than 

20 1 hour prior to use by the electrolyzer. 

21 ‘‘(ii) QUALIFIED RENEWABLE ENERGY

22 RESOURCES.—The term ‘qualified renew23 able energy resources’ means— 

24 ‘‘(I) wind, 

25 ‘‘(II) solar energy, 


ssavage on LAPJG3WLY3PROD with BILLS
63 

•S 4406 IS

1 ‘‘(III) geothermal energy (as de2 fined in section 45(c)(4)), 

3 ‘‘(IV) marine and hydrokinetic 

4 renewable energy (as defined in sec5 tion 45(c)(10)), and 

6 ‘‘(V) hydropower.’’, and 

7 (ii) by striking subparagraph (C), 

8 (C) in paragraph (3)(C), by inserting ‘‘, 

9 and which is placed in service after December 

10 31, 2024’’ after ‘‘January 1, 2033’’, and 

11 (D) by redesignating paragraphs (2) and 

12 (3) as paragraphs (1) and (2), respectively, 

13 (4) in subsection (e)— 

14 (A) in paragraph (1), by striking ‘‘de15 scribed in subsection (b)(2)’’ and inserting 

16 ‘‘produced by the taxpayer’’, and 

17 (B) in paragraph (3)(A)(ii), by striking 

18 ‘‘subsection (a)(2)’’ and inserting ‘‘subsection 

19 (a)(1)’’, and 

20 (5) in subsection (f), by striking ‘‘, including 

21 regulations or other guidance for determining 

22 lifecycle greenhouse gas emissions’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Section 45(e)(13) of the Internal Revenue 

25 Code of 1986 is amended by striking ‘‘section 


ssavage on LAPJG3WLY3PROD with BILLS
64 

•S 4406 IS

1 45V(c)(3)) to produce qualified clean hydrogen (as 

2 defined in section 45V(c)(2))’’ and inserting ‘‘section 

3 45V(c)(2)) to produce qualified clean hydrogen (as 

4 defined in section 45V(c)(1))’’. 

5 (2) Section 48(a)(15) of such Code is amend6 ed— 

7 (A) in subparagraph (A), by striking 

8 clause (ii) and inserting the following: 

9 ‘‘(ii) the energy percentage with re10 spect to such property is 6 percent.’’, 

11 (B) in subparagraph (C)— 

12 (i) by striking ‘‘section 45V(c)(3)’’ 

13 and inserting ‘‘section 45V(c)(2)’’, and 

14 (ii) in clause (i), by striking ‘‘Decem15 ber 31, 2022’’ and inserting ‘‘December 

16 31, 2024’’, and 

17 (C) in subparagraph (D), by striking ‘‘sec18 tion 45V(c)(2)’’ and inserting ‘‘section 

19 45V(c)(1)’’. 

20 (3) Section 6417 of such Code is amended— 

21 (A) in subsection (b)(5), by striking ‘‘De22 cember 31, 2012’’ and inserting ‘‘December 31, 

23 2024’’, and 


ssavage on LAPJG3WLY3PROD with BILLS
65 

•S 4406 IS

1 (B) in subsection (d)(1)(B), by striking 

2 ‘‘section 45V(c)(3)’’ and inserting ‘‘section 

3 45V(c)(2)’’. 

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

5 this section shall apply to facilities placed in service after 

6 December 31, 2024. 

7 TITLE III—REPEAL RECENT FOS8 SIL FUEL SUBSIDY LEGISLA9 TION 

10 SEC. 301. FISCAL RESPONSIBILITY ACT. 

11 (a) BUILDER ACT.— 

12 (1) GENERAL REPEAL.—Sections 106, 107, 

13 108, 109, 110, and 111 of the National Environ14 mental Policy Act of 1969 (42 U.S.C. 4336, 4336a, 

15 4336b, 4336c, 4336d, 4336e) are repealed. 

16 (2) REPEAL OF MODIFICATIONS.—Section 

17 102(2) of the National Environmental Policy Act of 

18 1969 (42 U.S.C. 4332(2)) is amended— 

19 (A) in subparagraph (C)— 

20 (i) in the matter preceding clause (i), 

21 by striking ‘‘consistent with the provisions 

22 of this Act and except where compliance 

23 would be inconsistent with other statutory 

24 requirements,’’; 


ssavage on LAPJG3WLY3PROD with BILLS
66 

•S 4406 IS

1 (ii) by striking clauses (i) through (v) 

2 and inserting the following: 

3 ‘‘(i) the environmental impact of the 

4 proposed action; 

5 ‘‘(ii) any adverse environmental ef6 fects which cannot be avoided should the 

7 proposal be implemented; 

8 ‘‘(iii) alternatives to the proposed ac9 tion; 

10 ‘‘(iv) the relationship between local 

11 short-term uses of man’s environment and 

12 the maintenance and enhancement of long13 term productivity; and 

14 ‘‘(v) any irreversible and irretrievable 

15 commitments of resources which would be 

16 involved in the proposed action should it be 

17 implemented.’’; and 

18 (iii) in the undesignated matter fol19 lowing clause (v) (as so amended), in the 

20 first sentence, by striking ‘‘head of the 

21 lead agency’’ and inserting ‘‘responsible 

22 Federal official’’; 

23 (B) by striking subparagraphs (D), (E), 

24 and (F); 


ssavage on LAPJG3WLY3PROD with BILLS
67 

•S 4406 IS

1 (C) by redesignating subparagraphs (G) 

2 through (L) as subparagraphs (D) through (I); 

3 and 

4 (D) in subparagraph (F) (as so redesig5 nated), by striking ‘‘consistent with the provi6 sions of this Act,’’. 

7 (b) EXPEDITING COMPLETION OF THE MOUNTAIN

8 VALLEY PIPELINE.—Section 324 of the Fiscal Responsi9 bility Act (Public Law 118–5; 137 Stat. 47) is repealed. 

10 SEC. 302. INFLATION REDUCTION ACT. 

11 (a) 2017–2022 OUTER CONTINENTAL SHELF LEAS12 ING PROGRAM.—Section 50264 of Public Law 117–169 

13 (commonly known as the ‘‘Inflation Reduction Act of 

14 2022’’) (136 Stat. 2059) is repealed. 

15 (b) ENSURING ENERGY SECURITY.—Section 50265 

16 of Public Law 117–169 (commonly known as the ‘‘Infla17 tion Reduction Act of 2022’’) (43 U.S.C. 3006) is re18 pealed. 

19 TITLE IV—ELIMINATION OF 

20 OTHER FOSSIL FUEL SUBSIDIES 

21 SEC. 401. STUDY AND ELIMINATION OF ADDITIONAL FOSSIL 

22 FUEL SUBSIDIES. 

23 (a) DEFINITION OF SUBSIDY FOR FOSSIL-FUEL PRO24 DUCTION.—In this section, the term ‘‘subsidy for fossil25 fuel production’’ means any direct funding, tax treatment 


ssavage on LAPJG3WLY3PROD with BILLS
68 

•S 4406 IS

1 or incentive, risk-reduction benefit, financing assistance or 

2 guarantee, royalty relief, or other provision that provides 

3 a financial benefit to a fossil-fuel company for the produc4 tion of fossil fuels. 

5 (b) REPORT TO CONGRESS.—Not later than 1 year 

6 after the date of enactment of this Act, the Secretary of 

7 the Treasury or a delegate of the Secretary (referred to 

8 in this section as the ‘‘Secretary’’), in coordination with 

9 the Secretary of Energy, shall submit to Congress a report 

10 detailing each Federal law (including regulations), other 

11 than those amended by this Act, as in effect on the date 

12 on which the report is submitted, that includes a subsidy 

13 for fossil-fuel production. 

14 (c) REPORT ON MODIFIED RECOVERY PERIOD.— 

15 (1) IN GENERAL.—Not later than 1 year after 

16 the date of enactment of this Act, the Secretary, in 

17 coordination with the Commissioner of Internal Rev18 enue, shall submit to Congress a report on the appli19 cable recovery period under the accelerated cost re20 covery system provided in section 168 of the Inter21 nal Revenue Code of 1986 for each type of property 

22 involved in fossil-fuel production, including pipelines, 

23 power generation property, refineries, and drilling 

24 equipment, to determine if any assets are receiving 

25 a subsidy for fossil-fuel production. 


ssavage on LAPJG3WLY3PROD with BILLS
69 

•S 4406 IS

1 (2) ELIMINATION OF SUBSIDY.— 

2 (A) IN GENERAL.—In the case of any type 

3 of property that the Secretary determines is re4 ceiving a subsidy for fossil-fuel production 

5 under section 168 of the Internal Revenue Code 

6 of 1986, for property placed in service in tax7 able years beginning after the date of such de8 termination, section 168 of the Internal Rev9 enue Code of 1986 shall not apply. 

10 (B) EXCEPTION.—Subparagraph (A) shall 

11 not apply to any property with respect to a tax12 able year unless such determination is published 

13 before the first day of such taxable year. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS