I 

113TH CONGRESS 

1ST SESSION H. R. 2956 

To eliminate unnecessary oil tax credits and subsidies for major oil companies 

to reduce the national debt. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 1, 2013 

Mr. MURPHY of Florida (for himself, Mr. BLUMENAUER, Ms. ESTY, and Mr. 

BARBER) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Natural 

Resources, 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 unnecessary oil tax credits and subsidies for 

major oil companies to reduce the national debt. 

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 Welfare for Big 

5 Oil Act of 2013’’. 


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1 TITLE I—REPEAL OF OIL AND 

2 GAS SUBSIDIES 

3 Subtitle A—Close Big Oil Tax 

4 Loopholes 

5 SEC. 101. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

6 APPLICABLE TO MAJOR INTEGRATED OIL 

7 COMPANIES WHICH ARE DUAL CAPACITY 

8 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 MAJOR INTE14 GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY

15 TAXPAYERS.— 

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

17 other provision of this chapter, any amount paid or 

18 accrued by a dual capacity taxpayer which is a 

19 major integrated oil company (as defined in section 

20 167(h)(5)(B)) to a foreign country or possession of 

21 the United States for any period shall not be consid22 ered a tax— 

23 ‘‘(A) if, for such period, the foreign coun24 try or possession does not impose a generally 

25 applicable income tax, or 


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

2 the amount (determined in accordance with reg3 ulations) which— 

4 ‘‘(i) is paid by such dual capacity tax5 payer pursuant to the generally applicable 

6 income tax imposed by the country or pos7 session, or 

8 ‘‘(ii) would be paid if the generally ap9 plicable income tax imposed by the country 

10 or possession were applicable to such dual 

11 capacity taxpayer. 

12 Nothing in this paragraph shall be construed to 

13 imply the proper treatment of any such amount not 

14 in excess of the amount determined under subpara15 graph (B). 

16 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur17 poses of this subsection, the term ‘dual capacity tax18 payer’ means, with respect to any foreign country or 

19 possession of the United States, a person who— 

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

21 possession, and 

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

23 indirectly a specific economic benefit (as deter24 mined in accordance with regulations) from 

25 such country or possession. 


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

2 For purposes of this subsection— 

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

4 applicable income tax’ means an income tax (or 

5 a series of income taxes) which is generally im6 posed under the laws of a foreign country or 

7 possession on income derived from the conduct 

8 of a trade or business within such country or 

9 possession. 

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

11 include a tax unless it has substantial applica12 tion, by its terms and in practice, to— 

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

14 taxpayers, and 

15 ‘‘(ii) persons who are citizens or resi16 dents of the foreign country or posses17 sion.’’. 

18 (b) EFFECTIVE DATE.— 

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

20 this section shall apply to taxes paid or accrued in 

21 taxable years beginning after the date of the enact22 ment of this Act. 

23 (2) CONTRARY TREATY OBLIGATIONS

24 UPHELD.—The amendments made by this section 


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1 shall not apply to the extent contrary to any treaty 

2 obligation of the United States. 

3 SEC. 102. LIMITATION ON SECTION 199 DEDUCTION ATTRIB4 UTABLE TO OIL, NATURAL GAS, OR PRIMARY 

5 PRODUCTS THEREOF. 

6 (a) DENIAL OF DEDUCTION.—Paragraph (4) of sec7 tion 199(c) of the Internal Revenue Code of 1986 is 

8 amended by adding at the end the following new subpara9 graph: 

10 ‘‘(E) SPECIAL RULE FOR CERTAIN OIL

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

12 who is a major integrated oil company (as de13 fined in section 167(h)(5)(B)) for the taxable 

14 year, the term ‘domestic production gross re15 ceipts’ shall not include gross receipts from the 

16 production, transportation, or distribution of 

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

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

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2013. 

22 SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE 

23 DRILLING AND DEVELOPMENT COSTS. 

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

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


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

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

3 taxable year in which such taxpayer is a major integrated 

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

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

6 this section shall apply to amounts paid or incurred in tax7 able years beginning after December 31, 2013. 

8 SEC. 104. LIMITATION ON PERCENTAGE DEPLETION AL9 LOWANCE FOR OIL AND GAS WELLS. 

10 (a) IN GENERAL.—Section 613A of the Internal Rev11 enue Code of 1986 is amended by adding at the end the 

12 following new subsection: 

13 ‘‘(f) APPLICATION WITH RESPECT TO MAJOR INTE14 GRATED OIL COMPANIES.—In the case of any taxable year 

15 in which the taxpayer is a major integrated oil company 

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

17 percentage depletion shall be zero.’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2013. 

21 SEC. 105. LIMITATION ON DEDUCTION FOR TERTIARY 

22 INJECTANTS. 

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

25 following new subsection: 


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1 ‘‘(d) APPLICATION WITH RESPECT TO MAJOR INTE2 GRATED OIL COMPANIES.—This section shall not apply to 

3 amounts paid or incurred by a taxpayer in any taxable 

4 year in which such taxpayer is a major integrated oil com5 pany (as defined in section 167(h)(5)(B)).’’. 

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

7 this section shall apply to amounts paid or incurred in tax8 able years beginning after December 31, 2013. 

9 Subtitle B—Outer Continental 

10 Shelf Oil and Natural Gas 

11 SEC. 111. REPEAL OF OUTER CONTINENTAL SHELF DEEP 

12 WATER AND DEEP GAS ROYALTY RELIEF. 

13 (a) IN GENERAL.—Sections 344 and 345 of the En14 ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 

15 repealed. 

16 (b) LIMITATION ON APPLICATION.—The repeal under 

17 subsection (a) shall not affect the application of the re18 pealed sections with respect to any lease sale for which 

19 a notice of sale is published before the date of enactment 

20 of this Act. 

21 TITLE II—BUDGETARY EFFECTS 

22 SEC. 201. DEFICIT REDUCTION. 

23 The net amount of any savings realized as a result 

24 of the enactment of this Act and the amendments made 

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


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

2 in the Treasury and used for Federal budget deficit reduc3 tion or, if there is no Federal budget deficit, for reducing 

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

5 Treasury considers appropriate. 

Æ 


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