I 

117TH CONGRESS 

1ST SESSION H. R. 2184 

To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies 

for oil companies, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 26, 2021 

Mr. BLUMENAUER (for himself, Mr. CASTEN, Mr. MCEACHIN, and Ms. PORTER) introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

fossil fuel subsidies for oil companies, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘End Oil and Gas Tax 

5 Subsidies Act of 2021’’. 

6 SEC. 2. AMORTIZATION OF GEOLOGICAL AND GEO7 PHYSICAL EXPENDITURES. 

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

9 Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘24-month period’’ in paragraph 

2 (1) and inserting ‘‘7-year period’’, and 

3 (2) by striking paragraph (5). 

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

5 this section shall apply to amounts paid or incurred in tax6 able years beginning after December 31, 2020. 

7 SEC. 3. PRODUCING OIL AND GAS FROM MARGINAL WELLS. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 is amended by striking section 45I (and by striking 

11 the item relating to such section in the table of sections 

12 for such subpart). 

13 (b) CONFORMING AMENDMENT.—Section 38(b) of 

14 such Code is amended by striking paragraph (19). 

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

16 subsection (a) shall apply to credits determined for taxable 

17 years beginning after December 31, 2020. 

18 SEC. 4. ENHANCED OIL RECOVERY CREDIT. 

19 (a) IN GENERAL.—Subpart D of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code of 

21 1986 is amended by striking section 43 (and by striking 

22 the item relating to such section in the table of sections 

23 for such subpart). 

24 (b) CONFORMING AMENDMENT.—Section 38(b) of 

25 such Code is amended by striking paragraph (6). 


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

2 this section shall apply to amounts paid or incurred in tax3 able years beginning after December 31, 2020. 

4 SEC. 5. INTANGIBLE DRILLING AND DEVELOPMENT COSTS 

5 IN THE CASE OF OIL AND GAS WELLS. 

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

7 the Internal Revenue Code of 1986 is amended by adding 

8 at the end the following new sentence: ‘‘This subsection 

9 shall not apply to amounts paid or incurred by a taxpayer 

10 with respect to an oil or gas well after December 31, 

11 2020.’’. 

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, 2020. 

15 SEC. 6. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND 

16 GAS WELLS. 

17 (a) IN GENERAL.—Part I of subchapter I of chapter 

18 1 of the Internal Revenue Code of 1986 is amended by 

19 striking section 613A (and the table of sections of such 

20 part is amended by striking the item relating to such sec21 tion). 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Subsection (d) of section 45H of such Code 

24 is amended— 


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1 (A) by striking ‘‘For purposes of this sec2 tion’’ and inserting the following: 

3 ‘‘(1) IN GENERAL.—For purposes of this sec4 tion’’, 

5 (B) by striking ‘‘(within the meaning of 

6 section 613A(d)(3))’’, and 

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

8 paragraph: 

9 ‘‘(2) RELATED PERSON.—For purposes of this 

10 subsection, a person is a related person with respect 

11 to the taxpayer if a significant ownership interest in 

12 either the taxpayer or such person is held by the 

13 other, or if a third person has a significant owner14 ship interest in both the taxpayer and such person. 

15 For purposes of the preceding sentence, the term 

16 ‘significant ownership interest’ means— 

17 ‘‘(A) with respect to any corporation, 5 

18 percent or more in value of the outstanding 

19 stock of such corporation, 

20 ‘‘(B) with respect to a partnership, 5 per21 cent or more interest in the profits or capital of 

22 such partnership, and 

23 ‘‘(C) with respect to an estate or trust, 5 

24 percent or more of the beneficial interests in 

25 such estate or trust. 


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1 For purposes of determining a significant ownership 

2 interest, an interest owned by or for a corporation, 

3 partnership, trust, or estate shall be considered as 

4 owned directly both by itself and proportionately by 

5 its shareholders, partners, or beneficiaries, as the 

6 case may be.’’. 

7 (2) Section 57(a)(1) of such Code is amended 

8 by striking the last sentence. 

9 (3) Section 291(b)(4) of such Code is amended 

10 by adding at the end the following: ‘‘Any reference 

11 in the preceding sentence to section 613A shall be 

12 treated as a reference to such section as in effect 

13 prior to the date of the enactment of the End Oil 

14 and Gas Tax Subsidies Act of 2021.’’. 

15 (4) Section 613(d) of such Code is amended by 

16 striking ‘‘Except as provided in section 613A, in the 

17 case of’’ and inserting ‘‘In the case of’’. 

18 (5) Section 613(e) of such Code is amended— 

19 (A) by striking ‘‘or section 613A’’ in para20 graph (2), and 

21 (B) by striking ‘‘any amount described in 

22 section 613A(d)(5)’’ in paragraph (3) and in23 serting ‘‘any lease bonus, advance royalty, or 

24 other amount payable without regard to produc25 tion from property’’. 


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1 (6) Section 705(a) of such Code is amended— 

2 (A) by inserting ‘‘and’’ at the end of para3 graph (1)(C), 

4 (B) by striking ‘‘; and’’ at the end of para5 graph (2)(B) and inserting a period, and 

6 (C) by striking paragraph (3). 

7 (7) Section 993(c)(2)(C) of such Code is 

8 amended by striking ‘‘section 613 or 613A’’ and in9 serting ‘‘section 613 (determined without regard to 

10 subsection (d) thereof)’’. 

11 (8) Section 1202(e)(3)(D) of such Code is 

12 amended by striking ‘‘section 613 or 613A’’ and in13 serting ‘‘section 613 (determined without regard to 

14 subsection (d) thereof)’’. 

15 (9) Section 1367(a)(2) of such Code is amended 

16 by inserting ‘‘and’’ at the end of subparagraph (C), 

17 by striking ‘‘, and’’ at the end of subparagraph (D) 

18 and inserting a period, and by striking subparagraph 

19 (E). 

20 (10) Section 1446(c) of such Code is amended 

21 by striking paragraph (2) and by redesignating 

22 paragraph (3) as paragraph (2). 

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

24 this section shall apply to property placed in service after 

25 December 31, 2020. 


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1 SEC. 7. REPEAL OF DEDUCTION FOR TERTIARY 

2 INJECTANTS. 

3 (a) IN GENERAL.—Part VI of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by striking section 193 (and the table of sections of such 

6 subpart is amended by striking the item relating to such 

7 section). 

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

9 this section shall apply to taxable years beginning after 

10 December 31, 2020. 

11 SEC. 8. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITA12 TIONS FOR WORKING INTERESTS IN OIL AND 

13 GAS PROPERTIES. 

14 (a) IN GENERAL.—Section 469(c)(3) of the Internal 

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

16 the following new subparagraph: 

17 ‘‘(C) TERMINATION.—Subparagraph (A) 

18 shall not apply with respect to any taxable year 

19 beginning after the date of the enactment of 

20 this Act.’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2020. 


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1 SEC. 9. DEDUCTION FOR QUALIFIED BUSINESS INCOME 

2 NOT ALLOWED WITH RESPECT TO OIL AND 

3 GAS ACTIVITIES. 

4 (a) IN GENERAL.—Section 199A(c)(3)(B) of the In5 ternal Revenue Code of 1986 is amended by redesignating 

6 clause (vii) as clause (viii), and by inserting after clause 

7 (vi) the following new clause: 

8 ‘‘(vii) The production, refining, proc9 essing, transportation, or distribution of 

10 oil, gas, or any primary product thereof.’’. 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2020. 

14 SEC. 10. PROHIBITION ON USING LAST-IN, FIRST-OUT AC15 COUNTING FOR OIL AND GAS COMPANIES. 

16 (a) IN GENERAL.—Section 472 of the Internal Rev17 enue Code of 1986 is amended by adding at the end the 

18 following new subsection: 

19 ‘‘(h) OIL AND GAS COMPANIES.— 

20 ‘‘(1) IN GENERAL.—Notwithstanding any other 

21 provision of this section, a major integrated oil com22 pany may not use the method provided in subsection 

23 (b) in inventorying of any goods. 

24 ‘‘(2) MAJOR INTEGRATED OIL COMPANY.—For 

25 purposes of this subsection, the term ‘major inteVerDate Sep 11 2014 01:04 May 21, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2184.IH H2184

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1 grated oil company’ means, with respect to any tax2 able year, a producer of crude oil— 

3 ‘‘(A) which has an average daily worldwide 

4 production of crude oil of at least 500,000 bar5 rels for the taxable year, 

6 ‘‘(B) which has gross receipts in excess of 

7 $1,000,000,000 for the taxable year, and 

8 ‘‘(C) the average daily refinery runs of the 

9 taxpayer and related persons for the taxable 

10 year exceed 75,000 barrels. 

11 ‘‘(3) SPECIAL RULES.— 

12 ‘‘(A) CRUDE PRODUCTION AND GROSS RE13 CEIPTS.—For purposes of subparagraphs (A) 

14 and (B) of paragraph (2)— 

15 ‘‘(i) CONTROLLED GROUPS AND COM16 MON CONTROL.—All persons treated as a 

17 single employer under subsections (a) and 

18 (b) of section 52 shall be treated as 1 per19 son. 

20 ‘‘(ii) SHORT TAXABLE YEARS.—In 

21 case of a short taxable year, the rule under 

22 section 448(c)(3)(B) shall apply. 

23 ‘‘(B) AVERAGE DAILY REFINERY RUNS.— 

24 For purposes of paragraph (2)(C)— 


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1 ‘‘(i) IN GENERAL.—The average daily 

2 refinery runs for any taxable year shall be 

3 determined by dividing the aggregate refin4 ery runs for the taxable year by the num5 ber of days in the taxable year. 

6 ‘‘(ii) RELATED PERSONS.—A person 

7 is a related person with respect to the tax8 payer if a significant ownership interest in 

9 either the taxpayer or such person is held 

10 by the other, or if a third person has a sig11 nificant ownership interest in both the tax12 payer and such person. 

13 ‘‘(iii) SIGNIFICANT OWNERSHIP IN14 TEREST.—For purposes of clause (ii), the 

15 term ‘significant ownership interest’ 

16 means— 

17 ‘‘(I) with respect to any corpora18 tion, 15 percent or more in value of 

19 the outstanding stock of such corpora20 tion, 

21 ‘‘(II) with respect to a partner22 ship, 15 percent or more interest in 

23 the profits or capital of such partner24 ship, and 


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1 ‘‘(III) with respect to an estate 

2 or trust, 15 percent or more of the 

3 beneficial interests in such estate or 

4 trust. 

5 For purposes of determining a significant 

6 ownership interest, an interest owned by or 

7 for a corporation, partnership, trust, or es8 tate shall be considered as owned directly 

9 both by itself and proportionately by its 

10 shareholders, partners, or beneficiaries, as 

11 the case may be.’’. 

12 (b) EFFECTIVE DATE AND SPECIAL RULE.— 

13 (1) IN GENERAL.—The amendment made by 

14 subsection (a) shall apply to taxable years beginning 

15 after December 31, 2020. 

16 (2) CHANGE IN METHOD OF ACCOUNTING.—In 

17 the case of any taxpayer required by the amendment 

18 made by this section to change its method of ac19 counting for its first taxable year beginning after the 

20 date of the enactment of this Act— 

21 (A) such change shall be treated as initi22 ated by the taxpayer, 

23 (B) such change shall be treated as made 

24 with the consent of the Secretary of the Treas25 ury, and 


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1 (C) the net amount of the adjustments re2 quired to be taken into account by the taxpayer 

3 under section 481 of the Internal Revenue Code 

4 of 1986 shall be taken into account ratably over 

5 a period (not greater than 8 taxable years) be6 ginning with such first taxable year. 

7 SEC. 11. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

8 APPLICABLE TO DUAL CAPACITY TAXPAYERS. 

9 (a) IN GENERAL.—Section 901 of the Internal Rev10 enue Code of 1986 is amended by redesignating subsection 

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

12 the following new subsection: 

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

14 TAXPAYERS.— 

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

16 other provision of this chapter, any amount paid or 

17 accrued by a dual capacity taxpayer to a foreign 

18 country or possession of the United States for any 

19 period with respect to combined foreign oil and gas 

20 income (as defined in section 907(b)(1)) shall not be 

21 considered a tax to the extent such amount exceeds 

22 the amount (determined in accordance with regula23 tions) which would have been required to be paid if 

24 the taxpayer were not a dual capacity taxpayer. 


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

4 possession of the United States, a person who— 

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

6 possession, and 

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

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

10 such country or possession.’’. 

11 (b) EFFECTIVE DATE.— 

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

13 this section shall apply to taxes paid or accrued in 

14 taxable years beginning after December 31, 2020. 

15 (2) CONTRARY TREATY OBLIGATIONS

16 UPHELD.—The amendments made by this section 

17 shall not apply to the extent contrary to any treaty 

18 obligation of the United States. 

19 SEC. 12. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR 

20 EXCISE TAX PURPOSES. 

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

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

23 as follows: 

24 ‘‘(1) CRUDE OIL.—The term ‘crude oil’ includes 

25 crude oil condensates, natural gasoline, any bitumen 


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1 or bituminous mixture, any oil derived from a bitu2 men or bituminous mixture (including oil derived 

3 from tar sands), and any oil derived from kerogen4 bearing sources (including oil derived from oil 

5 shale).’’. 

6 (b) REGULATORY AUTHORITY TO ADDRESS OTHER

7 TYPES OF CRUDE OIL AND PETROLEUM PRODUCTS.— 

8 Subsection (a) of section 4612 of such Code is amended 

9 by adding at the end the following new paragraph: 

10 ‘‘(10) REGULATORY AUTHORITY TO ADDRESS

11 OTHER TYPES OF CRUDE OIL AND PETROLEUM

12 PRODUCTS.—Under such regulations as the Sec13 retary may prescribe, the Secretary may include as 

14 crude oil or as a petroleum product subject to tax 

15 under section 4611, any fuel feedstock or finished 

16 fuel product customarily transported by pipeline, 

17 vessel, railcar, or tanker truck if the Secretary deter18 mines that— 

19 ‘‘(A) the classification of such fuel feed20 stock or finished fuel product is consistent with 

21 the definition of oil under the Oil Pollution Act 

22 of 1990, and 

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

24 product is produced in sufficient commercial 


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1 quantities as to pose a significant risk of haz2 ard in the event of a discharge.’’. 

3 (c) TECHNICAL AMENDMENT.—Paragraph (2) of sec4 tion 4612(a) of such Code is amended by striking ‘‘from 

5 a well located’’. 

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

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

8 of this Act. 

Æ 


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