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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2046 Introduced in Senate (IS)]

104th CONGRESS
  2d Session
                                S. 2046

  To amend section 29 of the Internal Revenue Code of 1986 to allow a 
credit for qualified fuels produced from wells drilled during 1997, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 2, 1996

Mr. Rockefeller introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend section 29 of the Internal Revenue Code of 1986 to allow a 
credit for qualified fuels produced from wells drilled during 1997, and 
                          for other purposes.

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

SECTION 1. MODIFICATIONS OF CREDIT FOR PRODUCING FUEL FROM A 
              NONCONVENTIONAL SOURCE.

    (a) Allowance of Credit for Wells Drilled During 1997.--
Subparagraph (A) of section 29(f)(1) of the Internal Revenue Code of 
1986 (relating to application of section) is amended by inserting ``and 
after December 31, 1996, and before January 1, 1998,'' after ``January 
1, 1993,''.
    (b) Oil From the Bakken Shale Formation.--Section 29(c) of the 
Internal Revenue Code of 1986 (defining qualified fuels) is amended by 
adding at the end the following new paragraph:
            ``(4) Oil from the bakken shale formation.--For purposes of 
        this section, oil produced from shale from a conventional or 
        nonconventional well producing from the Bakken shale formation 
        shall be treated as a qualified fuel to the extent that the 
        production from such well during the taxable year does not 
        exceed 1,750 barrels.''
    (c) Limitations on Credit.--Section 29(b) of the Internal Revenue 
Code of 1986 (relating to limitations) is amended by adding at the end 
the following new paragraph:
            ``(7) Limitations on certain fuels eligible for credit.--
                    ``(A) Gas.--
                            ``(i) Wells producing 100 million cubic 
                        feet or less.--In the case of a well to which 
                        clause (ii) does not apply, no credit shall be 
                        allowed under subsection (a) with respect to 
                        gas produced from such well during any taxable 
                        year to the extent that the amount of gas 
                        produced from the well exceeds 10 million cubic 
                        feet (mmcf).
                            ``(ii) Wells producing more than 100 
                        million cubic feet.--No credit shall be allowed 
                        under subsection (a) with respect to gas 
                        produced from any well during any taxable year 
                        if the amount of gas produced from the well 
                        during such taxable year exceeds 100 million 
                        cubic feet (mmcf).
                    ``(B) Oil from bakken formation.--No credit shall 
                be allowed under subsection (a) with respect to oil 
                produced from any well described in subsection (c)(4) 
                during any taxable year if the amount of oil produced 
                from the well during such taxable year exceeds 17,500 
                barrels.''
    (d) Effective Dates.--
            (1) In general.--The amendments made by subsections (a) and 
        (b) shall apply to wells drilled after December 31, 1996.
            (2) Limitations.--The amendment made by subsection (c) 
        shall apply to qualified fuels produced after December 31, 
        1996.
                                 <all>
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