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106TH CONGRESS

2D SESSION S. 3171

To amend the Internal Revenue Code of 1986 to extend the section 29

credit for producing fuel from a nonconventional source.

IN THE SENATE OF THE UNITED STATES

OCTOBER 5 (legislative day, SEPTEMBER 22), 2000

Mr. MURKOWSKI (for himself, Mr. BREAUX, and Mr. STEVENS) introduced the

following bill; which was referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend

the section 29 credit for producing fuel from a nonconventional source.

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 ‘‘Energy Security for

5 American Consumers Act of 2000’’.

6 SEC. 2. EXTENSION OF CREDIT FOR PRODUCING FUEL

7 FROM A NONCONVENTIONAL SOURCE.

8 (a) EXTENSION OF CREDIT.—Subsection (f) of sec9 tion 29 of the Internal Revenue Code of 1986 (relating
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1 to credit for producing fuel from a nonconventional

2 source) is amended—

3 (1) in paragraph (1)(A), by inserting before

4 ‘‘or’’ the following: ‘‘or from a well drilled after the

5 date of the enactment of the Energy Security for

6 American Consumers Act of 2000, and before Janu7 ary 1, 2011,’’,

8 (2) in paragraph (1)(B), by inserting before

9 ‘‘and’’ at the end the following: ‘‘or placed in service

10 after the date of the enactment of the Energy Secu11 rity for American Consumers Act of 2000, and be12 fore January 1, 2011,’’, and

13 (3) in paragraph (2), by striking ‘‘2003’’ and

14 inserting ‘‘2013’’.

15 (b) REDUCTION IN AMOUNT OF CREDIT BY 20 PER16 CENT PER YEAR STARTING IN 2007.— Subsection (a) of

17 section 29 of such Code is amended to read as follows:

18 ‘‘(a) ALLOWANCE OF CREDIT.—

19 ‘‘(1) IN GENERAL.—There shall be allowed as a

20 credit against the tax imposed by this chapter for

21 the taxable year an amount equal to—

22 ‘‘(A) the applicable amount, multiplied by

23 ‘‘(B) the barrel-of-oil equivalent of quali24 fied fuels—
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1 ‘‘(i) sold by the taxpayer to an unre2 lated person during the taxable year, and

3 ‘‘(ii) the production of which is attrib4 utable to the taxpayer.

5 ‘‘(2) APPLICABLE AMOUNT.—For purposes of

6 paragraph (1), the applicable amount is the amount

7 determined in accordance with the following table:

‘‘In the case of taxable The applicable amount

years beginning in calendar year: is:

2001 to 2008 ............................................................. $3.00

2009 .......................................................................... $2.60

2010 .......................................................................... $2.00

2011 .......................................................................... $1.40

2012 .......................................................................... $0.80

2013 and thereafter .................................................. $0.00.’’

8 (c) CREDIT ALLOWED AGAINST BOTH REGULAR TAX

9 AND ALTERNATIVE MINIMUM TAX.—Paragraph (6) of

10 section 29(b) of such Code is amended to read as follows:

11 ‘‘(6) APPLICATION WITH OTHER CREDITS.—

12 The credit allowed by subsection (a) for any taxable

13 year shall not exceed the excess of—

14 ‘‘(A) the sum of the regular tax liability

15 (as defined in section 26(b)) plus the tax im16 posed by section 55, over

17 ‘‘(B) the sum of the credits allowable

18 under this part (other than subpart C and this

19 section) and under section 1397E.’’
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1 (d) QUALIFIED FUELS TO INCLUDE HEAVY OIL.—

2 Subsection (c) of section 29 of such Code (defining quali3 fied fuels) is amended—

4 (1) in paragraph (1), by striking ‘‘and’’ at the

5 end of subparagraph (B), by striking the period at

6 the end of subparagraph (C) and inserting ‘‘, and’’,

7 and by adding at the end the following new subpara8 graph:

9 ‘‘(D) heavy oil, as defined in section

10 613A(c)(6)(7).’’, and

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

12 paragraph:

13 ‘‘(4) SPECIAL RULE FOR HEAVY OIL.—Heavy

14 oil shall be considered to be a qualified fuel only if

15 it is produced from a well drilled, or in a facility

16 placed in service, after the date of the enactment of

17 the Energy Security for American Consumers Act of

18 2000, and before January 1, 2011.’’

19 (e) REPEAL OF SUPERSEDED SUBSECTION.—Sub20 section (g) of section 29 of such Code is repealed.

21 (f) EFFECTIVE DATE.—The amendments made by

22 this Act shall apply to taxable years beginning after De23 cember 31, 2000.

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