II 

Calendar No. 337 

112TH CONGRESS 

2D SESSION S. 2204 

To eliminate unnecessary tax subsidies and promote renewable energy and 

energy conservation. 

IN THE SENATE OF THE UNITED STATES 

MARCH 19, 2012 

Mr. MENENDEZ (for himself and Mr. REID) introduced the following bill; 

which was read the first time 

MARCH 20, 2012 

Read the second time and placed on the calendar 

A BILL 

To eliminate unnecessary tax subsidies and promote 

renewable energy and energy conservation. 

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 ‘‘Repeal Big Oil Tax 

5 Subsidies Act’’. 


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1 TITLE I—TAX EXTENSIONS 

2 RELATING TO ENERGY 

3 SEC. 101. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

4 EXISTING HOMES. 

5 (a) IN GENERAL.—Paragraph (2) of section 25C(g) 

6 of the Internal Revenue Code of 1986 is amended by strik7 ing ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

8 2012’’. 

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

10 this section shall apply to property placed in service after 

11 December 31, 2011. 

12 SEC. 102. EXTENSION OF CREDIT FOR CERTAIN PLUG-IN 

13 ELECTRIC VEHICLES. 

14 (a) IN GENERAL.—Subsection (f) of section 30 of the 

15 Internal Revenue Code of 1986 is amended by striking 

16 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

17 2012’’. 

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

19 this section shall apply to vehicles acquired after Decem20 ber 31, 2011. 

21 SEC. 103. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

22 VEHICLE REFUELING PROPERTY. 

23 (a) EXTENSION.—Paragraph (2) of section 30C(g) of 

24 the Internal Revenue Code of 1986 is amended by striking 


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1 ‘‘December 31, 2011.’’ and inserting ‘‘December 31, 

2 2012’’. 

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

4 this section shall apply to property placed in service after 

5 December 31, 2011. 

6 SEC. 104. EXTENSION OF CELLULOSIC BIOFUEL PRODUCER 

7 CREDIT. 

8 (a) IN GENERAL.—Subparagraph (H) of section 

9 40(b)(6) of the Internal Revenue Code of 1986 is amended 

10 to read as follows: 

11 ‘‘(H) APPLICATION OF PARAGRAPH.— 

12 ‘‘(i) IN GENERAL.—This paragraph 

13 shall apply with respect to qualified cellu14 losic biofuel production after December 31, 

15 2008, and before January 1, 2014. 

16 ‘‘(ii) NO CARRYOVER TO CERTAIN

17 YEARS AFTER EXPIRATION.—If this para18 graph ceases to apply for any period by 

19 reason of clause (i), rules similar to the 

20 rules of subsection (e)(2) shall apply.’’. 

21 (b) CONFORMING AMENDMENT.— 

22 (1) IN GENERAL.—Paragraph (2) of section 

23 40(e) of the Internal Revenue Code of 1986 is 

24 amended by striking ‘‘or subsection (b)(6)(H)’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall take effect as if included in 

3 section 15321(b) of the Heartland, Habitat, and 

4 Horticulture Act of 2008. 

5 SEC. 105. ALGAE TREATED AS A QUALIFIED FEEDSTOCK 

6 FOR PURPOSES OF THE CELLULOSIC 

7 BIOFUEL PRODUCER CREDIT, ETC. 

8 (a) IN GENERAL.—Subclause (I) of section 

9 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is 

10 amended to read as follows: 

11 ‘‘(I) is derived by, or from, quali12 fied feedstocks, and’’. 

13 (b) QUALIFIED FEEDSTOCK; SPECIAL RULES FOR

14 ALGAE.—Paragraph (6) of section 40(b) of the Internal 

15 Revenue Code of 1986 is amended by redesignating sub16 paragraphs (F), (G), and (H), as amended by this Act, 

17 as subparagraphs (H), (I), and (J), respectively, and by 

18 inserting after subparagraph (E) the following new sub19 paragraphs: 

20 ‘‘(F) QUALIFIED FEEDSTOCK.—For pur21 poses of this paragraph, the term ‘qualified 

22 feedstock’ means— 

23 ‘‘(i) any lignocellulosic or 

24 hemicellulosic matter that is available on a 

25 renewable or recurring basis, and 


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1 ‘‘(ii) any cultivated algae, 

2 cyanobacteria, or lemna. 

3 ‘‘(G) SPECIAL RULES FOR ALGAE.—In the 

4 case of fuel which is derived by, or from, feed5 stock described in subparagraph (F)(ii) and 

6 which is sold by the taxpayer to another person 

7 for refining by such other person into a fuel 

8 which meets the requirements of subparagraph 

9 (E)(i)(II) and the refined fuel is not excluded 

10 under subparagraph (E)(iii)— 

11 ‘‘(i) such sale shall be treated as de12 scribed in subparagraph (C)(i), 

13 ‘‘(ii) such fuel shall be treated as 

14 meeting the requirements of subparagraph 

15 (E)(i)(II) and as not being excluded under 

16 subparagraph (E)(iii) in the hands of such 

17 taxpayer, and 

18 ‘‘(iii) except as provided in this sub19 paragraph, such fuel (and any fuel derived 

20 from such fuel) shall not be taken into ac21 count under subparagraph (C) with respect 

22 to the taxpayer or any other person.’’. 

23 (c) ALGAE TREATED AS A QUALIFIED FEEDSTOCK

24 FOR PURPOSES OF BONUS DEPRECIATION FOR BIOFUEL

25 PLANT PROPERTY.— 


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1 (1) IN GENERAL.—Subparagraph (A) of section 

2 168(l)(2) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘solely to produce cellulosic 

4 biofuel’’ and inserting ‘‘solely to produce second gen5 eration biofuel (as defined in section 40(b)(6)(E))’’. 

6 (2) CONFORMING AMENDMENTS.—Subsection 

7 (l) of section 168 of such Code is amended— 

8 (A) by striking ‘‘cellulosic biofuel’’ each 

9 place it appears in the text thereof and insert10 ing ‘‘second generation biofuel’’, 

11 (B) by striking paragraph (3) and redesig12 nating paragraphs (4) through (8) as para13 graphs (3) through (7), respectively, 

14 (C) by striking ‘‘CELLULOSIC’’ in the 

15 heading of such subsection and inserting ‘‘SEC16 OND GENERATION’’, and 

17 (D) by striking ‘‘CELLULOSIC’’ in the head18 ing of paragraph (2) and inserting ‘‘SECOND

19 GENERATION’’. 

20 (d) CONFORMING AMENDMENTS.— 

21 (1) Section 40 of the Internal Revenue Code of 

22 1986, as amended by subsection (b), is amended— 

23 (A) by striking ‘‘cellulosic biofuel’’ each 

24 place it appears in the text thereof and insert25 ing ‘‘second generation biofuel’’, 


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1 (B) by striking ‘‘CELLULOSIC’’ in the 

2 headings of subsections (b)(6), (b)(6)(E), and 

3 (d)(3)(D) and inserting ‘‘SECOND GENERA4 TION’’, and 

5 (C) by striking ‘‘CELLULOSIC’’ in the head6 ings of subsections (b)(6)(C), (b)(6)(D), 

7 (b)(6)(H), (d)(6), and (e)(3) and inserting 

8 ‘‘SECOND GENERATION’’. 

9 (2) Clause (ii) of section 40(b)(6)(E) of such 

10 Code is amended by striking ‘‘Such term shall not’’ 

11 and inserting ‘‘The term ‘second generation biofuel’ 

12 shall not’’. 

13 (3) Paragraph (1) of section 4101(a) of such 

14 Code is amended by striking ‘‘cellulosic biofuel’’ and 

15 inserting ‘‘second generation biofuel’’. 

16 (e) EFFECTIVE DATES.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this section 

19 shall apply to fuels sold or used after the date of the 

20 enactment of this Act. 

21 (2) APPLICATION TO BONUS DEPRECIATION.— 

22 The amendments made by subsection (c) shall apply 

23 to property placed in service after the date of the en24 actment of this Act. 


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1 SEC. 106. EXTENSION OF INCENTIVES FOR BIODIESEL AND 

2 RENEWABLE DIESEL. 

3 (a) CREDITS FOR BIODIESEL AND RENEWABLE DIE4 SEL USED AS FUEL.—Subsection (g) of section 40A of 

5 the Internal Revenue Code of 1986 is amended by striking 

6 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

7 2012’’. 

8 (b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS

9 FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX10 TURES.— 

11 (1) Paragraph (6) of section 6426(c) of the In12 ternal Revenue Code of 1986 is amended by striking 

13 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

14 2012’’. 

15 (2) Subparagraph (B) of section 6427(e)(6) of 

16 such Code is amended by striking ‘‘December 31, 

17 2011’’ and inserting ‘‘December 31, 2012’’. 

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

19 this section shall apply to fuel sold or used after December 

20 31, 2011. 

21 SEC. 107. EXTENSION OF PRODUCTION CREDIT FOR RE22 FINED COAL. 

23 (a) IN GENERAL.—Subparagraph (B) of section 

24 45(d)(8) of the Internal Revenue Code of 1986 is amended 

25 by striking ‘‘January 1, 2012’’ and inserting ‘‘January 1, 

26 2013’’. 


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

2 this section shall apply to facilities placed in service after 

3 December 31, 2011. 

4 SEC. 108. EXTENSION OF PRODUCTION CREDIT. 

5 (a) IN GENERAL.—Section 45(d) of the Internal Rev6 enue Code of 1986 is amended by striking ‘‘January 1, 

7 2014’’ each place it appears in paragraphs (2), (3), (4), 

8 (6), (7), (9), and (11) and inserting ‘‘January 1, 2015’’. 

9 (b) WIND FACILITIES.—Paragraph (1) of section 

10 45(d) of the Internal Revenue Code of 1986 is amended 

11 by striking ‘‘January 1, 2013’’ and inserting ‘‘January 1, 

12 2014’’. 

13 (c) INCREASED CREDIT AMOUNT FOR INDIAN COAL

14 FACILITIES PLACED IN SERVICE BEFORE 2009.—Sub15 paragraph (A) of section 45(e)(10) of the Internal Rev16 enue Code of 1986 is amended by striking ‘‘7-year period’’ 

17 each place it appears and inserting ‘‘8-year period’’. 

18 (d) CONFORMING AMENDMENTS.—Subsection (e) of 

19 section 1603 of division B of the American Recovery and 

20 Reinvestment Act of 2009 is amended— 

21 (1) by striking ‘‘January 1, 2013’’ in paragraph 

22 (1) and inserting ‘‘January 1, 2014’’, and 

23 (2) by striking ‘‘January 1, 2014’’ in paragraph 

24 (2) and inserting ‘‘January 1, 2015’’. 

25 (e) EFFECTIVE DATES.— 


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1 (1) IN GENERAL.—Except as provided in para2 graph (2), the amendments made by this section 

3 shall apply to facilities placed in service after De4 cember 31, 2012. 

5 (2) INDIAN COAL.—The amendment made by 

6 subsection (c) shall take effect on the date of the en7 actment of this Act. 

8 SEC. 109. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

9 NEW HOMES. 

10 (a) IN GENERAL.—Subsection (g) of section 45L of 

11 the Internal Revenue Code of 1986 is amended by striking 

12 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

13 2012’’. 

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

15 this section shall apply to homes acquired after December 

16 31, 2011. 

17 SEC. 110. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

18 APPLIANCES. 

19 (a) IN GENERAL.—Section 45M(b) of the Internal 

20 Revenue Code of 1986 is amended by striking ‘‘2011’’ 

21 each place it appears other than in the provisions specified 

22 in subsection (b), and inserting ‘‘2011 or 2012’’. 

23 (b) PROVISIONS SPECIFIED.—The provisions of sec24 tion 45M(b) of the Internal Revenue Code of 1986 speciVerDate Mar 15 2010 22:58 Mar 20, 2012 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2204.PCS S2204

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1 fied in this subsection are subparagraph (C) of paragraph 

2 (1) and subparagraph (E) of paragraph (2). 

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

4 this section shall apply to appliances produced after De5 cember 31, 2011. 

6 SEC. 111. EXTENSION OF ELECTION OF INVESTMENT TAX 

7 CREDIT IN LIEU OF PRODUCTION CREDIT. 

8 (a) IN GENERAL.—Clause (ii) of section 48(a)(5)(C) 

9 of the Internal Revenue Code of 1986 is amended by strik10 ing ‘‘or 2013’’ and inserting ‘‘2013, or 2014’’. 

11 (b) WIND FACILITIES.—Clause (i) of section 

12 48(a)(5)(C) of the Internal Revenue Code of 1986 is 

13 amended by striking ‘‘Any qualified facility’’ and all that 

14 follows and inserting ‘‘Any facility which is— 

15 ‘‘(I) a qualified facility (within 

16 the meaning of section 45) described 

17 in paragraph (1) of section 45(d) if 

18 such facility is placed in service in 

19 2009, 2010, 2011, 2012, or 2013, or 

20 ‘‘(II) a qualifying offshore wind 

21 facility, if such facility is placed in 

22 service in 2012, 2013, or 2014.’’. 

23 (c) QUALIFYING OFFSHORE WIND FACILITY.—Para24 graph (5) of section 48(a) of the Internal Revenue Code 


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1 of 1986 is amended by adding at the end the following 

2 new subparagraph: 

3 ‘‘(E) QUALIFYING OFFSHORE WIND FACIL4 ITY.—For purposes of this paragraph— 

5 ‘‘(i) IN GENERAL.—The term ‘quali6 fying offshore wind facility’ means an off7 shore facility using wind to produce elec8 tricity. 

9 ‘‘(ii) OFFSHORE FACILITY.—The term 

10 ‘offshore facility’ means any facility located 

11 in the inland navigable waters of the 

12 United States, including the Great Lakes, 

13 or in the coastal waters of the United 

14 States, including the territorial seas of the 

15 United States, the exclusive economic zone 

16 of the United States, and the Outer Conti17 nental Shelf of the United States. For pur18 poses of the preceding sentence, the term 

19 ‘United States’ has the meaning given in 

20 section 638(1).’’. 

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

22 this section shall apply to facilities placed in service after 

23 December 31, 2011. 


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1 SEC. 112. EXPANSION OF QUALIFYING ADVANCED ENERGY 

2 PROJECT CREDIT. 

3 (a) IN GENERAL.—Subparagraph (B) of section 

4 48C(d)(1) of the Internal Revenue Code of 1986 is amend5 ed by striking ‘‘$2,300,000,000’’ and inserting 

6 ‘‘$4,600,000,000’’. 

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

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

9 of this Act. 

10 SEC. 113. EXTENSION OF SPECIAL ALLOWANCE FOR CELLU11 LOSIC BIOFUEL PLANT PROPERTY. 

12 (a) IN GENERAL.—Subparagraph (D) of section 

13 168(l)(2) of the Internal Revenue Code of 1986 is amend14 ed by striking ‘‘January 1, 2013’’ and inserting ‘‘January 

15 1, 2014’’. 

16 (b) CONFORMING AMENDMENT.—Paragraph (4) of 

17 section 168(l) of the Internal Revenue Code of 1986, as 

18 redesignated by this Act, is amended— 

19 (1) by striking ‘‘and’’ at the end of subpara20 graph (A), 

21 (2) by redesignating subparagraph (B) as sub22 paragraph (C), and 

23 (3) by inserting after subparagraph (A) the fol24 lowing new subparagraph: 

25 ‘‘(B) by substituting ‘January 1, 2014’ for 

26 ‘January 1, 2013’ in clause (i) thereof, and’’. 


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1 SEC. 114. EXTENSION OF SUSPENSION OF LIMITATION ON 

2 PERCENTAGE DEPLETION FOR OIL AND GAS 

3 FROM MARGINAL WELLS. 

4 (a) IN GENERAL.—Clause (ii) of section 

5 613A(c)(6)(H) of the Internal Revenue Code of 1986 is 

6 amended by striking ‘‘January 1, 2012’’ and inserting 

7 ‘‘January 1, 2013’’. 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2011. 

11 SEC. 115. EXTENSION OF ALTERNATIVE FUELS EXCISE TAX 

12 CREDITS. 

13 (a) IN GENERAL.—Sections 6426(d)(5), 6426(e)(3), 

14 and 6427(e)(6)(C) of the Internal Revenue Code of 1986 

15 are each amended by striking ‘‘December 31, 2011’’ and 

16 inserting ‘‘December 31, 2012’’. 

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

18 this section shall apply to fuel sold or used after December 

19 31, 2011. 

20 SEC. 116. EXTENSION OF GRANTS FOR SPECIFIED ENERGY 

21 PROPERTY IN LIEU OF TAX CREDITS. 

22 (a) IN GENERAL.—Subsection (a) of section 1603 of 

23 division B of the American Recovery and Reinvestment 

24 Act of 2009, as amended by section 707 of the Tax Relief, 

25 Unemployment Insurance Reauthorization, and Job Cre26 ation Act of 2010, is amended— 


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1 (1) by striking ‘‘or 2011’’ in paragraph (1) and 

2 inserting ‘‘2011, or 2012’’, and 

3 (2) in paragraph (2)— 

4 (A) by striking ‘‘after 2011’’ and inserting 

5 ‘‘after 2012’’, and 

6 (B) by striking ‘‘or 2011’’ and inserting 

7 ‘‘2011, or 2012’’. 

8 (b) CONFORMING AMENDMENT.—Subsection (j) of 

9 section 1603 of division B of such Act, as so amended, 

10 is amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 

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

12 this section shall apply to property placed in service after 

13 December 31, 2011. 

14 SEC. 117. EXTENSION OF MINE RESCUE TEAM TRAINING 

15 CREDIT. 

16 (a) IN GENERAL.—Subsection (e) of section 45N of 

17 the Internal Revenue Code of 1986 is amended by striking 

18 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

19 2012’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2011. 


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1 SEC. 118. EXTENSION OF ELECTION TO EXPENSE MINE 

2 SAFETY EQUIPMENT. 

3 (a) IN GENERAL.—Subsection (g) of section 179E of 

4 the Internal Revenue Code of 1986 is amended by striking 

5 ‘‘December 31, 2011’’ and inserting ‘‘December 31, 

6 2012’’. 

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

8 this section shall apply to property placed in service after 

9 December 31, 2011. 

10 TITLE II—REPEAL OF OIL AND 

11 GAS SUBSIDIES 

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.— 

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

26 other provision of this chapter, any amount paid or 


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1 accrued by a dual capacity taxpayer which is a 

2 major integrated oil company (as defined in section 

3 167(h)(5)(B)) to a foreign country or possession of 

4 the United States for any period shall not be consid5 ered a tax— 

6 ‘‘(A) if, for such period, the foreign coun7 try or possession does not impose a generally 

8 applicable income tax, or 

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

10 the amount (determined in accordance with reg11 ulations) which— 

12 ‘‘(i) is paid by such dual capacity tax13 payer pursuant to the generally applicable 

14 income tax imposed by the country or pos15 session, or 

16 ‘‘(ii) would be paid if the generally ap17 plicable income tax imposed by the country 

18 or possession were applicable to such dual 

19 capacity taxpayer. 

20 Nothing in this paragraph shall be construed to 

21 imply the proper treatment of any such amount not 

22 in excess of the amount determined under subpara23 graph (B). 

24 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur25 poses of this subsection, the term ‘dual capacity taxVerDate Mar 15 2010 22:58 Mar 20, 2012 Jkt 019200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S2204.PCS S2204

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1 payer’ means, with respect to any foreign country or 

2 possession of the United States, a person who— 

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

4 possession, and 

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

6 indirectly a specific economic benefit (as deter7 mined in accordance with regulations) from 

8 such country or possession. 

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

10 For purposes of this subsection— 

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

12 applicable income tax’ means an income tax (or 

13 a series of income taxes) which is generally im14 posed under the laws of a foreign country or 

15 possession on income derived from the conduct 

16 of a trade or business within such country or 

17 possession. 

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

19 include a tax unless it has substantial applica20 tion, by its terms and in practice, to— 

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

22 taxpayers, and 

23 ‘‘(ii) persons who are citizens or resi24 dents of the foreign country or posses25 sion.’’. 


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1 (b) EFFECTIVE DATE.— 

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

3 this section shall apply to taxes paid or accrued in 

4 taxable years beginning after the date of the enact5 ment of this Act. 

6 (2) CONTRARY TREATY OBLIGATIONS

7 UPHELD.—The amendments made by this section 

8 shall not apply to the extent contrary to any treaty 

9 obligation of the United States. 

10 SEC. 202. LIMITATION ON SECTION 199 DEDUCTION ATTRIB11 UTABLE TO OIL, NATURAL GAS, OR PRIMARY 

12 PRODUCTS THEREOF. 

13 (a) DENIAL OF DEDUCTION.—Paragraph (4) of sec14 tion 199(c) of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following new subpara16 graph: 

17 ‘‘(E) SPECIAL RULE FOR CERTAIN OIL

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

19 who is a major integrated oil company (as de20 fined in section 167(h)(5)(B)) for the taxable 

21 year, the term ‘domestic production gross re22 ceipts’ shall not include gross receipts from the 

23 production, transportation, or distribution of 

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

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


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 203. LIMITATION ON DEDUCTION FOR INTANGIBLE 

5 DRILLING AND DEVELOPMENT COSTS. 

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

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

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

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

10 taxable year in which such taxpayer is a major integrated 

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

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

13 this section shall apply to amounts paid or incurred in tax14 able years beginning after December 31, 2011. 

15 SEC. 204. LIMITATION ON PERCENTAGE DEPLETION AL16 LOWANCE FOR OIL AND GAS WELLS. 

17 (a) IN GENERAL.—Section 613A of the Internal Rev18 enue Code of 1986 is amended by adding at the end the 

19 following new subsection: 

20 ‘‘(f) APPLICATION WITH RESPECT TO MAJOR INTE21 GRATED OIL COMPANIES.—In the case of any taxable year 

22 in which the taxpayer is a major integrated oil company 

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

24 percentage depletion shall be zero.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 205. LIMITATION ON DEDUCTION FOR TERTIARY 

5 INJECTANTS. 

6 (a) IN GENERAL.—Section 193 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new subsection: 

9 ‘‘(d) APPLICATION WITH RESPECT TO MAJOR INTE10 GRATED OIL COMPANIES.—This section shall not apply to 

11 amounts paid or incurred by a taxpayer in any taxable 

12 year in which such taxpayer is a major integrated oil com13 pany (as defined in section 167(h)(5)(B)).’’. 

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

15 this section shall apply to amounts paid or incurred in tax16 able years beginning after December 31, 2011. 

17 Subtitle B—Outer Continental 

18 Shelf Oil and Natural Gas 

19 SEC. 211. REPEAL OF OUTER CONTINENTAL SHELF DEEP 

20 WATER AND DEEP GAS ROYALTY RELIEF. 

21 (a) IN GENERAL.—Sections 344 and 345 of the En22 ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 

23 repealed. 

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

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


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1 lease sale terms beginning with the first lease sale held 

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

3 a final notice of sale has not been published. 

4 TITLE III—BUDGETARY EFFECTS 

5 SEC. 301. DEFICIT REDUCTION. 

6 The net amount of any savings realized as a result 

7 of the enactment of this Act and the amendments made 

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

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

10 in the Treasury and used for Federal budget deficit reduc11 tion or, if there is no Federal budget deficit, for reducing 

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

13 Treasury considers appropriate. 

14 SEC. 302. BUDGETARY EFFECTS. 

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

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

17 shall be determined by reference to the latest statement 

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

19 Act, submitted for printing in the Congressional Record 

20 by the Chairman of the Senate Budget Committee, pro21 vided that such statement has been submitted prior to the 

22 vote on passage. 


tkelley on DSK3SPTVN1PROD with BILLS

tkelley on DSK3SPTVN1PROD with BILLS
Calendar No. 337 

112TH CONGRESS 

2D SESSION S. 2204 

A BILL 

To eliminate unnecessary tax subsidies and promote 

renewable energy and energy conservation. 

MARCH 20, 2012 

Read the second time and placed on the calendar 


tkelley on DSK3SPTVN1PROD with BILLS