I 

117TH CONGRESS 

1ST SESSION H. R. 2102 

To eliminate certain subsidies for fossil-fuel production. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2021 

Ms. OMAR introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committees on Natural Resources, Transportation and Infrastructure, Financial Services, Science, 

Space, and Technology, Agriculture, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To 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 2021’’. 

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. 

Sec. 3. Definition of fossil fuel. 

Sec. 4. Royalty relief. 


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Sec. 5. Royalties under Mineral Leasing Act. 

Sec. 6. Elimination of interest payments for royalty overpayments. 

Sec. 7. Removal of limits on liability for offshore facilities and pipeline operators. 

Sec. 8. Restrictions on use of appropriated funds by international financial institutions for projects that support fossil fuel. 

Sec. 9. Fossil Energy Research and Development Program. 

Sec. 10. Advanced Research Projects Agency—Energy. 

Sec. 11. Incentives for innovative technologies. 

Sec. 12. Rural Utility Service loan guarantees. 

Sec. 13. 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. 14. Transportation funds for grants, loans, loan guarantees, and other direct assistance. 

Sec. 15. Elimination of exclusion of certain lenders as owners or operators 

under CERCLA. 

Sec. 16. Termination of various tax expenditures relating to fossil fuels. 

Sec. 17. Termination of certain deductions and credits related to fossil fuels. 

Sec. 18. Uniform seven-year amortization for geological and geophysical expenditures. 

Sec. 19. Natural gas gathering lines treated as 15-year property. 

Sec. 20. Termination of last-in, first-out method of inventory for oil, natural 

gas, and coal companies. 

Sec. 21. Repeal of percentage depletion for coal and hard mineral fossil fuels. 

Sec. 22. Termination of capital gains treatment for royalties from coal. 

Sec. 23. Modifications of foreign tax credit rules applicable to oil and gas industry taxpayers receiving specific economic benefits. 

Sec. 24. Increase in oil spill liability trust fund financing rate. 

Sec. 25. Application of certain environmental taxes to synthetic crude oil. 

Sec. 26. Denial of deduction for removal costs and damages for certain oil 

spills. 

Sec. 27. Tax on crude oil and natural gas produced from the outer Continental 

Shelf in the Gulf of Mexico. 

Sec. 28. Repeal of corporate income tax exemption for publicly traded partnerships with qualifying income and gains from activities relating 

to fossil fuels. 

Sec. 29. Amortization of qualified tertiary injectant expenses. 

Sec. 30. Amortization of development expenditures. 

Sec. 31. Amortization of certain mining exploration expenditures. 

Sec. 32. Amortization of intangible drilling and development costs in the case 

of oil and gas wells and geothermal wells. 

Sec. 33. Permanent excise tax rate for funding of Black Lung Disability Trust 

Fund. 

Sec. 34. Termination of renewable electricity production credit eligibility for refined coal. 

Sec. 35. Treatment of foreign oil related income as subpart F income. 

Sec. 36. Repeal of exclusion of foreign oil and gas extraction income from the 

determination of tested income. 

Sec. 37. Termination of credit for carbon oxide sequestration. 

Sec. 38. Powder River Basin. 

Sec. 39. Study and elimination of additional fossil fuel subsidies. 


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1 SEC. 3. DEFINITION OF FOSSIL FUEL. 

2 In this Act, the term ‘‘fossil fuel’’ means coal, petro3 leum, natural gas, or any derivative of coal, petroleum, 

4 or natural gas that is used for fuel. 

5 SEC. 4. ROYALTY RELIEF. 

6 (a) IN GENERAL.— 

7 (1) OUTER CONTINENTAL SHELF LANDS ACT.— 

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

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

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

11 (B) by redesignating subparagraph (C) as 

12 subparagraph (B). 

13 (2) ENERGY POLICY ACT OF 2005.— 

14 (A) INCENTIVES FOR NATURAL GAS PRO15 DUCTION FROM DEEP WELLS IN THE SHALLOW

16 WATERS OF THE GULF OF MEXICO.—Section 

17 344 of the Energy Policy Act of 2005 (42 

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

19 (B) DEEP WATER PRODUCTION.—Section 

20 345 of the Energy Policy Act of 2005 (42 

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

22 (b) FUTURE PROVISIONS.—Notwithstanding any 

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

24 under a lease issued under section 8 of the Outer Conti25 nental Shelf Lands Act (43 U.S.C. 1337). 


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1 SEC. 5. ROYALTIES UNDER MINERAL LEASING ACT. 

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

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

sentence by striking ‘‘121 4 ⁄2 per centum’’ and inserting 

‘‘183 5 ⁄4 percent’’. 

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

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

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

by striking ‘‘121⁄2 per centum’’ and inserting ‘‘183 9 ⁄4 per10 cent’’. 

11 (c) LEASES ON LAND KNOWN OR BELIEVED TO

12 CONTAIN OIL OR NATURAL GAS.—Section 17 of the Min13 eral Leasing Act (30 U.S.C. 226) is amended— 

14 (1) in subsection (b)— 

15 (A) in paragraph (1)(A), in the fifth sen16 tence, by striking ‘‘12.5 percent’’ and inserting 

‘‘183 17 ⁄4 percent’’; and 

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

‘‘121⁄2 per centum’’ and inserting ‘‘183 19 ⁄4 per20 cent’’; 

21 (2) in subsection (c)(1), in the second sentence, 

by striking ‘‘12.5 percent’’ and inserting ‘‘183 22 ⁄4 per23 cent’’; 

(3) in subsection (l), by striking ‘‘121 24 ⁄2 per centum’’ each place it appears and inserting ‘‘183 25 ⁄4 per26 cent’’; and 


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(4) in subsection (n)(1)(C), by striking ‘‘121 1 ⁄2

per centum’’ and inserting ‘‘183 2 ⁄4 percent’’. 

3 SEC. 6. ELIMINATION OF INTEREST PAYMENTS FOR ROY4 ALTY OVERPAYMENTS. 

5 Section 111 of the Federal Oil and Gas Royalty Man6 agement Act of 1982 (30 U.S.C. 1721) is amended by 

7 adding at the end the following: 

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

9 paid on any overpayment.’’. 

10 SEC. 7. REMOVAL OF LIMITS ON LIABILITY FOR OFFSHORE 

11 FACILITIES AND PIPELINE OPERATORS. 

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

13 U.S.C. 2704(a)) is amended— 

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

15 $75,000,000; and’’ and inserting ‘‘and the liability 

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

17 (2) in paragraph (4)— 

18 (A) by inserting ‘‘(except an onshore pipe19 line transporting diluted bitumen, bituminous 

20 mixtures, or any oil manufactured from bitu21 men)’’ after ‘‘for any onshore facility’’; and 

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

23 inserting ‘‘; and’’; and 

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


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1 ‘‘(5) for any onshore facility transporting di2 luted bitumen, bituminous mixtures, or any oil man3 ufactured from bitumen, the liability of the respon4 sible party under section 1002.’’. 

5 SEC. 8. RESTRICTIONS ON USE OF APPROPRIATED FUNDS 

6 BY INTERNATIONAL FINANCIAL INSTITU7 TIONS FOR PROJECTS THAT SUPPORT FOS8 SIL FUEL. 

9 (a) RESCISSION OF UNOBLIGATED FUNDS.— 

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

11 of amounts appropriated or otherwise made available 

12 for a contribution of the United States to an inter13 national financial institution, an amount specified in 

14 paragraph (2) shall be rescinded if the institution 

15 provides support for a project that supports the pro16 duction or use of fossil fuels. 

17 (2) AMOUNT SPECIFIED.—The amount specified 

18 in this paragraph is an amount the Secretary of the 

19 Treasury determines to be equivalent to the amount 

20 of support provided by an international financial in21 stitution described in paragraph (1) for a project 

22 that supports the production or use of fossil fuels. 

23 (b) PROHIBITION ON USE OF FUTURE FUNDS.—No 

24 amounts appropriated or otherwise made available for a 

25 contribution of the United States to an international fiVerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102

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1 nancial institution may be provided to the institution un2 less the institution agrees to not use the amount to provide 

3 support for any project that supports the production or 

4 use of fossil fuels. 

5 (c) INTERNATIONAL FINANCIAL INSTITUTION DE6 FINED.—In this section, the term ‘‘international financial 

7 institution’’ has the meaning given that term in section 

8 1701(c) of the International Financial Institutions Act 

9 (22 U.S.C. 262r(c)). 

10 SEC. 9. FOSSIL ENERGY RESEARCH AND DEVELOPMENT 

11 PROGRAM. 

12 (a) TERMINATION OF AUTHORITY.—Notwithstanding 

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

14 of Energy to carry out the Fossil Energy Research and 

15 Development Program of the Department of Energy is 

16 terminated. 

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

19 (1) all amounts made available for the Fossil 

20 Energy Research and Development Program that re21 main unobligated as of the date of enactment of this 

22 Act are rescinded; and 

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

24 enactment of this Act for the Fossil Energy Re25 search and Development Program shall be expended, 


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1 other than such amounts as are necessary to cover 

2 costs incurred in terminating ongoing research of 

3 the Fossil Energy Research and Development Pro4 gram, as determined by the Secretary of Energy, in 

5 consultation with other appropriate Federal agen6 cies. 

7 SEC. 10. ADVANCED RESEARCH PROJECTS AGENCY—EN8 ERGY. 

9 None of the funds made available to the Advanced 

10 Research Projects Agency—Energy shall be used to carry 

11 out any project that supports fossil fuel. 

12 SEC. 11. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 

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

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

15 (1) in subsection (b)— 

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

17 and 

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

19 (5), (6), (7), (8), (9), (11), and (12) as para20 graphs (2), (3), (4), (5), (6), (7), (8), (9), and 

21 (10), respectively; 

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

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

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


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

2 Energy Policy Act of 2005 (42 U.S.C. 16514) is amend3 ed— 

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

5 (2) by redesignating subsection (c) as sub6 section (b). 

7 SEC. 12. RURAL UTILITY SERVICE LOAN GUARANTEES. 

8 Notwithstanding any other provision of law, the Sec9 retary of Agriculture may not make a loan under title III 

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

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

12 any project that will use fossil fuel. 

13 SEC. 13. PROHIBITION ON USE OF FUNDS BY THE UNITED 

14 STATES INTERNATIONAL DEVELOPMENT FI15 NANCE CORPORATION OR THE EXPORT-IM16 PORT BANK OF THE UNITED STATES FOR FI17 NANCING PROJECTS, TRANSACTIONS, OR 

18 OTHER ACTIVITIES THAT SUPPORT FOSSIL 

19 FUEL. 

20 Notwithstanding any other provision of law, no 

21 amounts appropriated or otherwise made available for the 

22 United States International Development Finance Cor23 poration or the Export-Import Bank of the United States 

24 that are available for obligation on or after the date of 

25 the enactment of this Act may be obligated or expended 


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1 to support any project, transaction, or other activity that 

2 supports the production or use of fossil fuels. 

3 SEC. 14. 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. 15. 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.), investment adviser (as defined 


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1 in section 202(a) of the Investment 

2 Advisers Act of 1940 (15 U.S.C. 80b– 

3 2(a))), or broker or dealer (as those 

4 terms are defined in section 3(a) of 

5 the Securities Exchange Act of 1934 

6 (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. 16. TERMINATION OF VARIOUS TAX EXPENDITURES 

15 RELATING TO FOSSIL FUELS. 

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

17 Internal Revenue Code of 1986 is amended by adding at 

18 the end the following new section: 

19 ‘‘SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELAT20 ING TO FOSSIL-FUEL INCENTIVES. 

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

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

23 enactment of the End Polluter Welfare Act of 2021: 

24 ‘‘(1) Section 43 (relating to enhanced oil recov25 ery credit). 


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1 ‘‘(2) Section 45I (relating to credit for pro2 ducing oil and natural gas from marginal wells). 

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

4 for spudding of oil or natural gas wells). 

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

6 interests in oil and natural gas property). 

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

8 percentage depletion in case of oil and natural gas 

9 wells). 

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

11 following provisions shall not apply to property placed in 

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

13 Welfare Act of 2021: 

14 ‘‘(1) Section 168(e)(3)(C)(iii) (relating to clas15 sification of certain property). 

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

17 pollution control facilities) with respect to any at18 mospheric pollution control facility. 

19 ‘‘(c) PROVISIONS RELATING TO COSTS AND EX20 PENSES.—The following provisions shall not apply to costs 

21 or expenses paid or incurred after the date of the enact22 ment of the End Polluter Welfare Act of 2021: 

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

24 capital costs incurred in complying with Environ25 mental Protection Agency sulfur regulations). 


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

2 mining and solid waste reclamation and closing 

3 costs). 

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

5 certified under section 48A (relating to qualifying ad6 vanced coal project credit) or section 48B (relating to 

7 qualifying gasification project credit) after the date of the 

8 enactment of the End Polluter Welfare Act of 2021. 

9 ‘‘(e) ARBITRAGE BONDS.—Section 148(b)(4) (relat10 ing to safe harbor for prepaid natural gas) shall not apply 

11 to obligations issued after the date of the enactment of 

12 the End Polluter Welfare Act of 2021.’’. 

13 (b) CONFORMING AMENDMENTS.— 

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

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

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

17 ‘‘In the case’’. 

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

19 chapter 90 of such Code is amended by adding at 

20 the end the following new item: 

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

21 SEC. 17. TERMINATION OF CERTAIN DEDUCTIONS AND 

22 CREDITS RELATED TO FOSSIL FUELS. 

23 (a) SPECIAL ALLOWANCE FOR CERTAIN PROP24 ERTY.—Section 168(k) of the Internal Revenue Code of 

25 1986 is amended by adding at the end the following: 


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1 ‘‘(11) FOSSIL FUEL PROPERTY.— 

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

3 not apply with respect to any property which is 

4 primarily used for fossil fuel activities and is 

5 placed in service during any taxable year begin6 ning after the date of the enactment of the End 

7 Polluter Welfare Act of 2021. 

8 ‘‘(B) FOSSIL FUEL ACTIVITIES.—For pur9 poses of this paragraph, the term ‘fossil fuel ac10 tivities’ means the exploration, development, 

11 mining or production, processing, refining, 

12 transportation (including pipelines transporting 

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

14 marketing of coal, petroleum, natural gas, or 

15 any derivative of coal, petroleum, or natural gas 

16 that is used for fuel. 

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

18 in subparagraph (A) shall not include any 

19 motor vehicle service station or convenience 

20 store which does not qualify as a retail motor 

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

22 (b) QUALIFIED BUSINESS INCOME.—Section 

23 199A(c)(3)(B) of the Internal Revenue Code of 1986 is 

24 amended by adding at the end the following: 


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1 ‘‘(viii) Any item of gain or loss de2 rived from fossil fuel activities (as defined 

3 in section 168(k)(11)(B)) during any tax4 able year beginning after the date of the 

5 enactment of the End Polluter Welfare Act 

6 of 2021.’’. 

7 (c) CREDIT FOR INCREASING RESEARCH ACTIVI8 TIES.—Section 41(d)(4) of the Internal Revenue Code of 

9 1986 is amended by adding at the end the following: 

10 ‘‘(I) FOSSIL FUEL ACTIVITIES.—Any re11 search related to fossil fuel activities (as defined 

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

13 after the date of the enactment of the End Pol14 luter Welfare Act of 2021.’’. 

15 (d) FOREIGN-DERIVED INTANGIBLE INCOME.—Sub16 clause (V) of section 250(b)(3)(A)(i) of the Internal Rev17 enue Code of 1986 is amended to read as follows: 

18 ‘‘(V) any income derived from 

19 fossil fuel activities (as defined in sec20 tion 168(k)(11)(B)) during any tax21 able year beginning after the date of 

22 the enactment of the End Polluter 

23 Welfare Act of 2021, and’’. 

24 (e) EXCHANGE OF REAL PROPERTY HELD FOR PRO25 DUCTIVE USE OR INVESTMENT.—Section 1031(a)(2) of 


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1 the Internal Revenue Code of 1986 is amended to read 

2 as follows: 

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

4 apply to— 

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

6 primarily for sale, or 

7 ‘‘(B) any exchange of real property 

8 which— 

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

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

11 ‘‘(ii) occurs after the date of the en12 actment of the End Polluter Welfare Act 

13 of 2021.’’. 

14 SEC. 18. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEO15 LOGICAL AND GEOPHYSICAL EXPENDITURES. 

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

17 Revenue Code of 1986 is amended— 

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

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

20 ‘‘84-month period’’; 

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

22 following: 

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

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1 ing any month shall be treated as paid or incurred 

2 on the mid-point of such month.’’; and 

3 (3) by striking paragraph (5). 

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

5 this section shall apply to amounts paid or incurred after 

6 the date of the enactment of this Act. 

7 SEC. 19. NATURAL GAS GATHERING LINES TREATED AS 15- 

8 YEAR PROPERTY. 

9 (a) IN GENERAL.—Section 168(e)(3)(E) of the Inter10 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

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

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

13 the end the following new clause: 

14 ‘‘(viii) any natural gas gathering line 

15 the original use of which commences with 

16 the taxpayer after the date of the enact17 ment of this clause.’’. 

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

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

20 1986 is amended by inserting after the item relating to 

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

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

22 (c) CONFORMING AMENDMENT.—Clause (iv) of sec23 tion 168(e)(3)(C) of the Internal Revenue Code of 1986 

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


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1 enactment of the End Polluter Welfare Act of 2021’’ after 

2 ‘‘April 11, 2005’’. 

3 (d) EFFECTIVE DATE.— 

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

5 this section shall apply to property placed in service 

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

7 (2) EXCEPTION.—The amendments made by 

8 this section shall not apply to any property with re9 spect to which the taxpayer or a related party has 

10 entered into a binding contract for the construction 

11 thereof on or before the date of the introduction of 

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

13 has started construction on or before such date. 

14 SEC. 20. TERMINATION OF LAST-IN, FIRST-OUT METHOD OF 

15 INVENTORY FOR OIL, NATURAL GAS, AND 

16 COAL COMPANIES. 

17 (a) IN GENERAL.—Section 472 of the Internal Rev18 enue Code of 1986 is amended by adding at the end the 

19 following new subsection: 

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

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

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

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

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


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1 the date of enactment of the End Polluter Welfare Act 

2 of 2021.’’. 

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

4 Internal Revenue Code of 1986 is amended by adding at 

5 the end the following new subsection: 

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

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

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

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

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

11 the date of enactment of the End Polluter Welfare Act 

12 of 2021.’’. 

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

14 case of any taxpayer required by the amendments made 

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

16 first taxable year beginning after the date of enactment 

17 of this Act— 

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

19 the taxpayer; and 

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

21 the consent of the Secretary of the Treasury. 

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

23 this section shall apply to taxable years beginning after 

24 the date of enactment of this Act. 


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1 SEC. 21. 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 2021.’’. 

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. 


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1 SEC. 22. 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. 23. 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 


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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 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102

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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 


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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 


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1 apply without regard to any treaty obligation of the 

2 United States. 

3 SEC. 24. INCREASE IN OIL SPILL LIABILITY TRUST FUND FI4 NANCING 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, 2021, 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.’’. 


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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, 2021. 

4 SEC. 25. 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).’’. 


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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’’. 


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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. 26. DENIAL OF DEDUCTION FOR REMOVAL COSTS AND 

6 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. 


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1 SEC. 27. TAX ON CRUDE OIL AND NATURAL GAS PRODUCED 

2 FROM THE OUTER CONTINENTAL SHELF IN 

3 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. 


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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 


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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. 


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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— 


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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 


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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, 2021. 

9 SEC. 28. REPEAL OF CORPORATE INCOME TAX EXEMPTION 

10 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. 29. AMORTIZATION OF QUALIFIED TERTIARY 

22 INJECTANT EXPENSES. 

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


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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. 


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1 SEC. 30. 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, 

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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— 


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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. 31. 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: 


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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.— 


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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 30(b)(2), is amended by striking paragraph 

7 (2). 

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

9 section 30(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, 


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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 30(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 30(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 


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

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

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

4 30(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 


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1 Polluter Welfare Act of 2021’’ 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 30(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. 32. AMORTIZATION OF INTANGIBLE DRILLING AND 

19 DEVELOPMENT COSTS IN THE CASE OF OIL 

20 AND GAS WELLS AND GEOTHERMAL 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: 

24 ‘‘(c) INTANGIBLE DRILLING AND DEVELOPMENT

25 COSTS IN THE CASE OF OIL AND GAS WELLS AND GEOVerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102

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1 THERMAL WELLS.—Notwithstanding subsection (a), and 

2 except as provided in subsection (i), in the case of any 

3 expenses paid or incurred in connection with intangible 

4 drilling and development costs related to oil and gas wells 

5 and wells drilled for any geothermal deposit (as defined 

6 in section 613(e)(2))— 

7 ‘‘(1) such expenses shall be allowed as a deduc8 tion ratably over the 84-month period beginning on 

9 the date that such expense was paid or incurred, 

10 ‘‘(2) any such expenses paid or incurred during 

11 any month shall be treated as paid or incurred on 

12 the mid-point of such month, 

13 ‘‘(3) except as provided in this subsection, no 

14 depreciation or amortization deduction shall be al15 lowed with respect to such expenses, and 

16 ‘‘(4) if any property with respect to which such 

17 intangible drilling and development costs are paid or 

18 incurred is retired or abandoned during such 84- 

19 month period, no deduction shall be allowed on ac20 count of such retirement or abandonment and the 

21 amortization deduction under this subsection shall 

22 continue with respect to such payment.’’. 

23 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 57(a)(2)(B)(i) of the Internal Rev2 enue Code of 1986 is amended by striking ‘‘263(c) 

3 or’’. 

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

5 sections 30 and 31, is amended— 

6 (A) in paragraph (2)— 

7 (i) in subparagraph (A), by inserting 

8 ‘‘or’’ at the end; 

9 (ii) in subparagraph (B), by striking 

10 the comma at the end and inserting a pe11 riod; and 

12 (iii) by striking subparagraph (C); 

13 and 

14 (B) by striking paragraph (5). 

15 (3) Section 263A(c)(3) of such Code, as amend16 ed by sections 30 and 31, is amended by striking 

17 ‘‘263(c),’’. 

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

19 sections 30 and 31, is amended by striking sub20 section (b). 

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

22 by sections 30 and 31, is amended by striking para23 graph (2). 

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

25 this section shall apply to expenditures paid or incurred 


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1 in taxable years beginning after the date of the enactment 

2 of this Act. 

3 SEC. 33. PERMANENT EXCISE TAX RATE FOR FUNDING OF 

4 BLACK LUNG DISABILITY TRUST FUND. 

5 (a) IN GENERAL.—Section 4121 of the Internal Rev6 enue Code of 1986 is amended— 

7 (1) in subsection (b)— 

8 (A) in paragraph (1), by striking ‘‘$1.10’’ 

9 and inserting ‘‘$1.38’’; and 

10 (B) in paragraph (2), by striking ‘‘$.55’’ 

11 and inserting ‘‘$0.69’’; and 

12 (2) by striking subsection (e). 

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

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

15 first calendar month beginning after the date of the enact16 ment of this Act. 

17 SEC. 34. TERMINATION OF RENEWABLE ELECTRICITY PRO18 DUCTION CREDIT ELIGIBILITY FOR REFINED 

19 COAL. 

20 Section 45(e)(8)(A)(ii)(II) of the Internal Revenue 

21 Code of 1986 is amended by inserting ‘‘and before the 

22 date of enactment of the End Polluter Welfare Act of 

23 2021’’ after ‘‘such taxable year’’. 


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1 SEC. 35. TREATMENT OF FOREIGN OIL RELATED INCOME 

2 AS SUBPART F INCOME. 

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

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

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

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

7 at the end the following new paragraph: 

8 ‘‘(4) the foreign base company oil related in9 come for the taxable year (determined under sub10 section (g) and reduced as provided in subsection 

11 (b)(5)).’’. 

12 (b) FOREIGN BASE COMPANY OIL RELATED IN13 COME.—Section 954 of the Internal Revenue Code of 1986 

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

15 new subsection: 

16 ‘‘(g) FOREIGN BASE COMPANY OIL RELATED IN17 COME.—For purposes of this section— 

18 ‘‘(1) IN GENERAL.—Except as otherwise pro19 vided in this subsection, the term ‘foreign base com20 pany oil related income’ means foreign oil related in21 come (within the meaning of paragraphs (2) and (3) 

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

23 source within a foreign country in connection with— 

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

25 an oil or gas well located in such foreign coun26 try, or 


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

2 or gas which is sold by the foreign corporation 

3 or a related person for use or consumption 

4 within such country or is loaded in such coun5 try on a vessel or aircraft as fuel for such vessel 

6 or aircraft. 

7 Such term shall not include any foreign personal 

8 holding company income (as defined in subsection 

9 (c)). 

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

11 CORPORATION HAS PRODUCED 1,000 BARRELS PER

12 DAY OR MORE.— 

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

14 base company oil related income’ shall not in15 clude any income of a foreign corporation if 

16 such corporation is not a large oil producer for 

17 the taxable year. 

18 ‘‘(B) LARGE OIL PRODUCER.—For pur19 poses of subparagraph (A), the term ‘large oil 

20 producer’ means any corporation if, for the tax21 able year or for the preceding taxable year, the 

22 average daily production of foreign crude oil 

23 and natural gas of the related group which in24 cludes such corporation equaled or exceeded 

25 1,000 barrels. 


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

2 group’ means a group consisting of the foreign 

3 corporation and any other person who is a re4 lated person with respect to such corporation. 

5 ‘‘(D) AVERAGE DAILY PRODUCTION OF

6 FOREIGN CRUDE OIL AND NATURAL GAS.—For 

7 purposes of this paragraph, the average daily 

8 production of foreign crude oil or natural gas of 

9 any related group for any taxable year (and the 

10 conversion of cubic feet of natural gas into bar11 rels) shall be determined under rules similar to 

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

13 day before the date of enactment of the End 

14 Polluter Welfare Act of 2021) except that only 

15 crude oil or natural gas from a well located out16 side the United States shall be taken into ac17 count.’’. 

18 (c) CONFORMING AMENDMENTS.— 

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

20 Revenue Code of 1986 is amended by redesignating 

21 subclauses (I) through (IV) as subclause (II) 

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

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

24 ‘‘(I) foreign base company oil re25 lated income,’’. 


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

2 (A) by inserting at the end of paragraph 

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

4 not apply to foreign base company oil-related 

5 income described in subsection (a)(4).’’; 

6 (B) by striking ‘‘and the foreign base com7 pany services income’’ in paragraph (5) and in8 serting ‘‘the foreign base company services in9 come, and the foreign base company oil related 

10 income’’; and 

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

12 paragraph: 

13 ‘‘(6) FOREIGN BASE COMPANY OIL RELATED IN14 COME NOT TREATED AS ANOTHER KIND OF BASE

15 COMPANY INCOME.—Income of a corporation which 

16 is foreign base company oil related income shall not 

17 be considered foreign base company income of such 

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

19 (a).’’. 

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

21 this section shall apply to taxable years of foreign corpora22 tions beginning after the date of the enactment of this 

23 Act and to taxable years of United States shareholders 

24 ending with or within which such taxable years of foreign 

25 corporations end. 


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1 SEC. 36. REPEAL OF EXCLUSION OF FOREIGN OIL AND GAS 

2 EXTRACTION INCOME FROM THE DETER3 MINATION OF TESTED INCOME. 

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

5 Internal Revenue Code of 1986 is amended— 

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

7 (III); 

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

9 (IV) and inserting ‘‘over’’; and 

10 (3) by striking subclause (V). 

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

12 this section shall apply to taxable years of foreign corpora13 tions beginning after the date of enactment of this Act, 

14 and to taxable years of United States shareholders in 

15 which or with which such taxable years of foreign corpora16 tions end. 

17 SEC. 37. TERMINATION OF CREDIT FOR CARBON OXIDE SE18 QUESTRATION. 

19 (a) IN GENERAL.—Section 45Q of the Internal Rev20 enue Code of 1986 is amended by adding at the end the 

21 following: 

22 ‘‘(i) TERMINATION.—This section shall not apply 

23 with respect to any qualified carbon oxide captured after 

24 the date of enactment of the End Polluter Welfare Act 

25 of 2021.’’. 

26 (b) REPORT.— 


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

2 after the date of enactment of this Act, the Sec3 retary of the Treasury, or the Secretary’s delegate, 

4 shall submit a report to Congress, to be made avail5 able to the public, which provides the following infor6 mation: 

7 (A) The taxpayer identity information of 

8 any taxpayer for which the carbon oxide seques9 tration credit under section 45Q of the Internal 

10 Revenue Code of 1986 was allowed for any tax11 able year following the enactment of such sec12 tion. 

13 (B) The total amount of the credit allowed 

14 pursuant to such section to each taxpayer de15 scribed in subparagraph (A). 

16 (C) With respect to the amount described 

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

18 allowed with respect to each of the following: 

19 (i) Qualified carbon oxide which was 

20 captured and disposed of by the taxpayer 

21 in secure geological storage and not used 

22 by the taxpayer as described in clause (ii) 

23 or (iii). 

24 (ii) Qualified carbon oxide which was 

25 captured and used by the taxpayer as a 


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1 tertiary injectant in a qualified enhanced 

2 oil or natural gas recovery project and dis3 posed of by the taxpayer in secure geologi4 cal storage. 

5 (iii) Qualified carbon oxide which was 

6 captured and utilized by the taxpayer in a 

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

8 the Internal Revenue Code of 1986. 

9 (2) EXCEPTION FROM RULES REGARDING CON10 FIDENTIALITY AND DISCLOSURE OF RETURNS AND

11 RETURN INFORMATION.—Section 6103(l) of the In12 ternal Revenue Code of 1986 is amended by adding 

13 at the end the following: 

14 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

15 FOR PUBLIC REPORT ON CARBON OXIDE SEQUES16 TRATION CREDIT.—The Secretary may disclose tax17 payer identity information and return information to 

18 the extent the Secretary deems necessary for pur19 poses of the report issued pursuant to section 37 of 

20 the End Polluter Welfare Act of 2021.’’. 

21 SEC. 38. POWDER RIVER BASIN. 

22 (a) DESIGNATION OF THE POWDER RIVER BASIN AS

23 A COAL PRODUCING REGION.—As soon as practicable 

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


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1 the Bureau of Land Management shall designate the Pow2 der River Basin as a coal producing region. 

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

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

5 Land Management shall submit to Congress a report that 

6 includes— 

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

8 amount and effective rate of royalties paid on coal 

9 leases in the Powder River Basin compared to other 

10 national and international coal basins and markets; 

11 and 

12 (2) any policy recommendations to capture the 

13 future market value of the coal leases in the Powder 

14 River Basin. 

15 SEC. 39. STUDY AND ELIMINATION OF ADDITIONAL FOSSIL 

16 FUEL SUBSIDIES. 

17 (a) DEFINITION OF FOSSIL-FUEL PRODUCTION SUB18 SIDY.—In this section, the term ‘‘subsidy for fossil-fuel 

19 production’’ means any direct funding, tax treatment or 

20 incentive, risk-reduction benefit, financing assistance or 

21 guarantee, royalty relief, or other provision that provides 

22 a financial benefit to a fossil-fuel company for the produc23 tion of fossil fuels. 

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

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


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1 the Treasury or the Secretary’s delegate (referred to in 

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

3 Secretary of Energy, shall submit to Congress a report 

4 detailing each Federal law (including regulations), other 

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

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

7 for fossil-fuel production. 

8 (c) REPORT ON MODIFIED RECOVERY PERIOD.— 

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

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

11 coordination with the Commissioner of Internal Rev12 enue, shall submit to Congress a report on the appli13 cable recovery period under the accelerated cost re14 covery system provided in section 168 of the Inter15 nal Revenue Code of 1986 for each type of property 

16 involved in fossil-fuel production, including pipelines, 

17 power generation property, refineries, and drilling 

18 equipment, to determine if any assets are receiving 

19 a subsidy for fossil-fuel production. 

20 (2) ELIMINATION OF SUBSIDY.—In the case of 

21 any type of property that the Secretary determines 

22 is receiving a subsidy for fossil-fuel production under 

23 such section 168, for property placed in service in 

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1 ceding sentence shall not apply to any property with 

2 respect to a taxable year unless such determination 

3 is published before the first day of such taxable 

4 year. 

Æ 


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