II 

109TH CONGRESS 

1ST SESSION S. 1781 

To amend the Internal Revenue Code of 1986 to allow full expensing for 

the cost of qualified refinery property in the year in which the property 

is placed in service, and to classify petroleum refining property as 5- 

year property for purposes of depreciation. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2005 

Mr. HATCH introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to allow full 

expensing for the cost of qualified refinery property in 

the year in which the property is placed in service, and 

to classify petroleum refining property as 5-year property 

for purposes of depreciation. 

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 ‘‘Refinery Investment 

5 Tax Assistance Act of 2005’’. 
2 

•S 1781 IS

1 SEC. 2. FULL EXPENSING FOR QUALIFIED REFINERY PROP2 ERTY. 

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

4 the Internal Revenue Code of 1986, as added by section 

5 1323 of the Energy Policy Act of 2005, is amended by 

6 striking ‘‘50 percent of’’. 

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

8 subsection (a) shall take effect as if included in section 

9 1323 of the Energy Policy Act of 2005. 

10 SEC. 3. PETROLEUM REFINING PROPERTY TREATED AS 5- 

11 YEAR PROPERTY. 

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

13 168(e)(3) of the Internal Revenue Code of 1986 (relating 

14 to 5-year property) is amended by striking ‘‘and’’ at the 

15 end of clause (v), by striking the period at the end of 

16 clause (vi) and inserting ‘‘, and’’, and by adding at the 

17 end the following new clause: 

18 ‘‘(vii) any petroleum refining prop19 erty.’’. 

20 (b) PETROLEUM REFINING PROPERTY.—Section 

21 168(i) of such Code is amended by adding at the end the 

22 following new paragraph: 

23 ‘‘(18) PETROLEUM REFINING PROPERTY.— 

24 ‘‘(A) IN GENERAL.—The term ‘petroleum 

25 refining property’ means any asset for petro26 leum refining, including assets used for the dis-
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•S 1781 IS

1 tillation, fractionation, and catalytic cracking of 

2 crude petroleum into gasoline and its other 

3 components. 

4 ‘‘(B) ASSET MUST MEET ENVIRONMENTAL

5 LAWS.—Such term shall not include any prop6 erty which does not meet all applicable environ7 mental laws in effect on the date such property 

8 was placed in service. For purposes of the pre9 ceding sentence, a waiver under the Clean Air 

10 Act shall not be taken into account in deter11 mining whether the applicable environmental 

12 laws have been met. 

13 ‘‘(C) SPECIAL RULE FOR MERGERS AND

14 ACQUISITIONS.—Such term shall not include 

15 any property with respect to which a deduction 

16 was taken under subsection (e)(3)(B) by any 

17 other taxpayer in any preceding year.’’. 

18 (c) EFFECTIVE DATE.— 

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

20 this section shall apply to property placed in service 

21 after the date of the enactment of this Act. 

22 (2) EXCEPTION.—The amendments made by 

23 this section shall not apply to any property with re24 spect to which the taxpayer has entered into a bind-
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•S 1781 IS

1 ing contract for the construction thereof on or before 

2 the date of the enactment of this Act. 

Æ