I 

118TH CONGRESS 

1ST SESSION H. R. 1743 

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

for oil companies, to establish gas price rebates to individuals for 2022, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 23, 2023 

Mr. CASTEN (for himself, Mr. BLUMENAUER, Mr. LEVIN, and Mrs. MCCLELLAN) 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, to establish gas 

price rebates to individuals for 2022, 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 ‘‘People Over Petroleum 

5 Act’’. 


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1 SEC. 2. AMORTIZATION OF GEOLOGICAL AND GEO2 PHYSICAL EXPENDITURES. 

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

4 Revenue Code of 1986 is amended— 

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

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

7 (2) by striking paragraph (5). 

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

9 this section shall apply to amounts paid or incurred in tax10 able years beginning after December 31, 2022. 

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

12 (a) IN GENERAL.—Subpart D of part IV of sub13 chapter A of chapter 1 of the Internal Revenue Code of 

14 1986 is amended by striking section 45I (and by striking 

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

16 for such subpart). 

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

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

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

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

21 years beginning after December 31, 2022. 

22 SEC. 4. ENHANCED OIL RECOVERY CREDIT. 

23 (a) IN GENERAL.—Subpart D of part IV of sub24 chapter A of chapter 1 of the Internal Revenue Code of 

25 1986 is amended by striking section 43 (and by striking 


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

2 for such subpart). 

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

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

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

6 this section shall apply to amounts paid or incurred in tax7 able years beginning after December 31, 2022. 

8 SEC. 5. INTANGIBLE DRILLING AND DEVELOPMENT COSTS 

9 IN THE CASE OF OIL AND GAS WELLS. 

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

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

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

13 apply to amounts paid or incurred by a taxpayer with re14 spect to an oil or gas well after December 31, 2022.’’. 

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

16 this section shall apply to amounts paid or incurred in tax17 able years beginning after December 31, 2022. 

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

19 GAS WELLS. 

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

21 1 of the Internal Revenue Code of 1986 is amended by 

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

23 part is amended by striking the item relating to such sec24 tion). 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 45H(d) of such Code is amended— 

2 (A) by striking ‘‘For purposes of this sec3 tion’’ and inserting the following: 

4 ‘‘(1) IN GENERAL.—For purposes of this sec5 tion’’, 

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

7 section 613A(d)(3))’’, and 

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

9 paragraph: 

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

11 subsection, a person is a related person with respect 

12 to the taxpayer if a significant ownership interest in 

13 either the taxpayer or such person is held by the 

14 other, or if a third person has a significant owner15 ship interest in both the taxpayer and such person. 

16 For purposes of the preceding sentence, the term 

17 ‘significant ownership interest’ means— 

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

19 percent or more in value of the outstanding 

20 stock of such corporation, 

21 ‘‘(B) with respect to a partnership, 5 per22 cent or more interest in the profits or capital of 

23 such partnership, and 


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

2 percent or more of the beneficial interests in 

3 such estate or trust. 

4 For purposes of determining a significant ownership 

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

6 partnership, trust, or estate shall be considered as 

7 owned directly both by itself and proportionately by 

8 its shareholders, partners, or beneficiaries, as the 

9 case may be.’’. 

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

11 by striking the last sentence. 

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

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

14 in the preceding sentence to section 613A shall be 

15 treated as a reference to such section as in effect 

16 prior to the date of the enactment of the People 

17 Over Petroleum Act.’’. 

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

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

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

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

22 (A) by striking ‘‘or section 613A’’ in para23 graph (2), and 

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

25 section 613A(d)(5)’’ in paragraph (3) and inVerDate Sep 11 2014 01:51 Jun 21, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1743.IH H1743

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1 serting ‘‘any lease bonus, advance royalty, or 

2 other amount payable without regard to produc3 tion from property’’. 

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

5 (A) by inserting ‘‘and’’ at the end of para6 graph (1)(C), 

7 (B) by striking ‘‘; and’’ at the end of para8 graph (2)(B) and inserting a period, and 

9 (C) by striking paragraph (3). 

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

11 amended by striking ‘‘section 613 or 613A’’ and in12 serting ‘‘section 613 (determined without regard to 

13 subsection (d) thereof)’’. 

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

15 amended by striking ‘‘section 613 or 613A’’ and in16 serting ‘‘section 613 (determined without regard to 

17 subsection (d) thereof)’’. 

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

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

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

21 and inserting a period, and by striking subparagraph 

22 (E). 

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

24 by striking paragraph (2) and by redesignating 

25 paragraph (3) as paragraph (2). 


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

2 this section shall apply to property placed in service after 

3 December 31, 2022. 

4 SEC. 7. REPEAL OF DEDUCTION FOR TERTIARY 

5 INJECTANTS. 

6 (a) IN GENERAL.—Part VI of subchapter B of chap7 ter 1 of the Internal Revenue Code of 1986 is amended 

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

9 subpart is amended by striking the item relating to such 

10 section). 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2022. 

14 SEC. 8. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITA15 TIONS FOR WORKING INTERESTS IN OIL AND 

16 GAS PROPERTIES. 

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

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

19 the following new subparagraph: 

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

21 shall not apply with respect to any taxable year 

22 beginning after the date of the enactment of 

23 this Act.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2022. 

4 SEC. 9. DEDUCTION FOR QUALIFIED BUSINESS INCOME 

5 NOT ALLOWED WITH RESPECT TO OIL AND 

6 GAS ACTIVITIES. 

7 (a) IN GENERAL.—Section 199A(c)(3)(B) of the In8 ternal Revenue Code of 1986 is amended by redesignating 

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

10 (vi) the following new clause: 

11 ‘‘(vii) The production, refining, proc12 essing, transportation, or distribution of 

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

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

15 this section shall apply to taxable years beginning after 

16 December 31, 2022. 

17 SEC. 10. PROHIBITION ON USING LAST-IN, FIRST-OUT AC18 COUNTING FOR OIL AND GAS COMPANIES. 

19 (a) IN GENERAL.—Section 472 of the Internal Rev20 enue Code of 1986 is amended by adding at the end the 

21 following new subsection: 

22 ‘‘(h) OIL AND GAS COMPANIES.— 

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

24 provision of this section, a major integrated oil comVerDate Sep 11 2014 01:51 Jun 21, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1743.IH H1743

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1 pany may not use the method provided in subsection 

2 (b) in inventorying of any goods. 

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

4 purposes of this subsection, the term ‘major inte5 grated oil company’ means, with respect to any tax6 able year, a producer of crude oil— 

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

8 production of crude oil of at least 500,000 bar9 rels for the taxable year, 

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

11 $1,000,000,000 for the taxable year, and 

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

13 taxpayer and related persons for the taxable 

14 year exceed 75,000 barrels. 

15 ‘‘(3) SPECIAL RULES.— 

16 ‘‘(A) CRUDE PRODUCTION AND GROSS RE17 CEIPTS.—For purposes of subparagraphs (A) 

18 and (B) of paragraph (2)— 

19 ‘‘(i) CONTROLLED GROUPS AND COM20 MON CONTROL.—All persons treated as a 

21 single employer under subsections (a) and 

22 (b) of section 52 shall be treated as 1 per23 son. 


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1 ‘‘(ii) SHORT TAXABLE YEARS.—In 

2 case of a short taxable year, the rule under 

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

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

5 For purposes of paragraph (2)(C)— 

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

7 refinery runs for any taxable year shall be 

8 determined by dividing the aggregate refin9 ery runs for the taxable year by the num10 ber of days in the taxable year. 

11 ‘‘(ii) RELATED PERSONS.—A person 

12 is a related person with respect to the tax13 payer if a significant ownership interest in 

14 either the taxpayer or such person is held 

15 by the other, or if a third person has a sig16 nificant ownership interest in both the tax17 payer and such person. 

18 ‘‘(iii) SIGNIFICANT OWNERSHIP IN19 TEREST.—For purposes of clause (ii), the 

20 term ‘significant ownership interest’ 

21 means— 

22 ‘‘(I) with respect to any corpora23 tion, 15 percent or more in value of 

24 the outstanding stock of such corpora25 tion, 


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1 ‘‘(II) with respect to a partner2 ship, 15 percent or more interest in 

3 the profits or capital of such partner4 ship, and 

5 ‘‘(III) with respect to an estate 

6 or trust, 15 percent or more of the 

7 beneficial interests in such estate or 

8 trust. 

9 For purposes of determining a significant 

10 ownership interest, an interest owned by or 

11 for a corporation, partnership, trust, or es12 tate shall be considered as owned directly 

13 both by itself and proportionately by its 

14 shareholders, partners, or beneficiaries, as 

15 the case may be.’’. 

16 (b) EFFECTIVE DATE AND SPECIAL RULE.— 

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

18 subsection (a) shall apply to taxable years beginning 

19 after December 31, 2022. 

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

21 the case of any taxpayer required by the amendment 

22 made by this section to change its method of ac23 counting for its first taxable year beginning after the 

24 date of the enactment of this Act— 


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1 (A) such change shall be treated as initi2 ated by the taxpayer, 

3 (B) such change shall be treated as made 

4 with the consent of the Secretary of the Treas5 ury, and 

6 (C) the net amount of the adjustments re7 quired to be taken into account by the taxpayer 

8 under section 481 of the Internal Revenue Code 

9 of 1986 shall be taken into account ratably over 

10 a period (not greater than 8 taxable years) be11 ginning with such first taxable year. 

12 SEC. 11. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

13 APPLICABLE TO DUAL CAPACITY TAXPAYERS. 

14 (a) IN GENERAL.—Section 901 of the Internal Rev15 enue Code of 1986 is amended by redesignating subsection 

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

17 the following new subsection: 

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

19 TAXPAYERS.— 

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

21 other provision of this chapter, any amount paid or 

22 accrued by a dual capacity taxpayer to a foreign 

23 country or possession of the United States for any 

24 period with respect to combined foreign oil and gas 

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


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1 considered a tax to the extent such amount exceeds 

2 the amount (determined in accordance with regula3 tions) which would have been required to be paid if 

4 the taxpayer were not a dual capacity taxpayer. 

5 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur6 poses of this subsection, the term ‘dual capacity tax7 payer’ means, with respect to any foreign country or 

8 possession of the United States, a person who— 

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

10 possession, and 

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

12 indirectly a specific economic benefit (as deter13 mined in accordance with regulations) from 

14 such country or possession.’’. 

15 (b) EFFECTIVE DATE.— 

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

17 this section shall apply to taxes paid or accrued in 

18 taxable years beginning after December 31, 2022. 

19 (2) CONTRARY TREATY OBLIGATIONS

20 UPHELD.—The amendments made by this section 

21 shall not apply to the extent contrary to any treaty 

22 obligation of the United States. 


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

2 EXCISE TAX PURPOSES. 

3 (a) IN GENERAL.—Section 4612(a)(1) of the Internal 

4 Revenue Code of 1986 is amended to read as follows: 

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

6 crude oil condensates, natural gasoline, any bitumen 

7 or bituminous mixture, any oil derived from a bitu8 men or bituminous mixture (including oil derived 

9 from tar sands), and any oil derived from kerogen10 bearing sources (including oil derived from oil 

11 shale).’’. 

12 (b) REGULATORY AUTHORITY TO ADDRESS OTHER

13 TYPES OF CRUDE OIL AND PETROLEUM PRODUCTS.— 

14 Section 4612(a) of such Code is amended by adding at 

15 the end the following new paragraph: 

16 ‘‘(10) REGULATORY AUTHORITY TO ADDRESS

17 OTHER TYPES OF CRUDE OIL AND PETROLEUM

18 PRODUCTS.—Under such regulations as the Sec19 retary may prescribe, the Secretary may include as 

20 crude oil or as a petroleum product subject to tax 

21 under section 4611, any fuel feedstock or finished 

22 fuel product customarily transported by pipeline, 

23 vessel, railcar, or tanker truck if the Secretary deter24 mines that— 

25 ‘‘(A) the classification of such fuel feed26 stock or finished fuel product is consistent with 


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1 the definition of oil under the Oil Pollution Act 

2 of 1990, and 

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

4 product is produced in sufficient commercial 

5 quantities as to pose a significant risk of haz6 ard in the event of a discharge.’’. 

7 (c) TECHNICAL AMENDMENT.—Section 4612(a)(2) 

8 of such Code is amended by striking ‘‘from a well located’’. 

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

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

11 of this Act. 

12 SEC. 13. 2022 GAS PRICES REBATE. 

13 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

14 Internal Revenue Code of 1986 is amended by inserting 

15 after section 6428B the following new section: 

16 ‘‘SEC. 6428C. 2022 GAS PRICES REBATE. 

17 ‘‘(a) IN GENERAL.—In the case of an eligible indi18 vidual, there shall be allowed as a credit against the tax 

19 imposed by subtitle A for the first taxable year beginning 

20 in 2022 an amount equal to the 2022 gas prices rebate 

21 amount determined for such taxable year. 

22 ‘‘(b) 2022 GAS PRICES REBATE AMOUNT.—For pur23 poses of this section, the term ‘2022 gas prices rebate 

24 amount’ means, with respect to any taxpayer for any tax25 able year, the sum of— 


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1 ‘‘(1) $500 ($1,000 in the case of a joint re2 turn), plus 

3 ‘‘(2) $500 multiplied by the number of depend4 ents of the taxpayer for such taxable year who had 

5 attained the age of 16 as of the close of such taxable 

6 year. 

7 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 

8 section, the term ‘eligible individual’ means any individual 

9 other than— 

10 ‘‘(1) any nonresident alien individual, 

11 ‘‘(2) any individual who is a dependent of an12 other taxpayer for a taxable year beginning in the 

13 calendar year in which the individual’s taxable year 

14 begins, and 

15 ‘‘(3) an estate or trust. 

16 ‘‘(d) DEFINITIONS AND SPECIAL RULES.— 

17 ‘‘(1) DEPENDENT DEFINED.—For purposes of 

18 this section, the term ‘dependent’ has the meaning 

19 given such term by section 152. 

20 ‘‘(2) IDENTIFICATION NUMBER REQUIRE21 MENT.— 

22 ‘‘(A) IN GENERAL.—In the case of a re23 turn other than a joint return, the $500 

24 amount in subsection (b)(1) shall be treated as 

25 being zero unless the taxpayer includes the 


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1 valid identification number of the taxpayer on 

2 the return of tax for the taxable year. 

3 ‘‘(B) JOINT RETURNS.—In the case of a 

4 joint return, the $1,000 amount in subsection 

5 (b)(1) shall be treated as being— 

6 ‘‘(i) $500 if the valid identification 

7 number of only 1 spouse is included on the 

8 return of tax for the taxable year, and 

9 ‘‘(ii) zero if the valid identification 

10 number of neither spouse is so included. 

11 ‘‘(C) DEPENDENTS.—A dependent shall 

12 not be taken into account under subsection 

13 (b)(2) unless the valid identification number of 

14 such dependent is included on the return of tax 

15 for the taxable year. 

16 ‘‘(D) VALID IDENTIFICATION NUMBER.— 

17 ‘‘(i) IN GENERAL.—For purposes of 

18 this paragraph, the term ‘valid identifica19 tion number’ means a social security num20 ber issued to an individual by the Social 

21 Security Administration on or before the 

22 due date for filing the return for the tax23 able year. 

24 ‘‘(ii) ADOPTION TAXPAYER IDENTI25 FICATION NUMBER.—For purposes of subVerDate Sep 11 2014 01:51 Jun 21, 2023 Jkt 039200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H1743.IH H1743

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1 paragraph (C), in the case of a dependent 

2 who is adopted or placed for adoption, the 

3 term ‘valid identification number’ shall in4 clude the adoption taxpayer identification 

5 number of such dependent. 

6 ‘‘(E) SPECIAL RULE FOR MEMBERS OF

7 THE ARMED FORCES.—Subparagraph (B) shall 

8 not apply in the case where at least 1 spouse 

9 was a member of the Armed Forces of the 

10 United States at any time during the taxable 

11 year and the valid identification number of at 

12 least 1 spouse is included on the return of tax 

13 for the taxable year. 

14 ‘‘(F) COORDINATION WITH CERTAIN AD15 VANCE PAYMENTS.—In the case of any payment 

16 determined pursuant to subsection (f)(6), a 

17 valid identification number shall be treated for 

18 purposes of this paragraph as included on the 

19 taxpayer’s return of tax if such valid identifica20 tion number is available to the Secretary as de21 scribed in such subsection. 

22 ‘‘(G) MATHEMATICAL OR CLERICAL ERROR

23 AUTHORITY.—Any omission of a correct valid 

24 identification number required under this para25 graph shall be treated as a mathematical or 


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1 clerical error for purposes of applying section 

2 6213(g)(2) to such omission. 

3 ‘‘(3) CREDIT TREATED AS REFUNDABLE.—The 

4 credit allowed by subsection (a) shall be treated as 

5 allowed by subpart C of part IV of subchapter A of 

6 chapter 1. 

7 ‘‘(e) COORDINATION WITH ADVANCE REFUNDS OF

8 CREDIT.— 

9 ‘‘(1) REDUCTION OF REFUNDABLE CREDIT.— 

10 The amount of the credit which would (but for this 

11 paragraph) be allowable under subsection (a) shall 

12 be reduced (but not below zero) by the aggregate re13 funds and credits made or allowed to the taxpayer 

14 (or, except as otherwise provided by the Secretary, 

15 any dependent of the taxpayer) under subsection (f). 

16 Any failure to so reduce the credit shall be treated 

17 as arising out of a mathematical or clerical error 

18 and assessed according to section 6213(b)(1). 

19 ‘‘(2) JOINT RETURNS.—Except as otherwise 

20 provided by the Secretary, in the case of a refund 

21 or credit made or allowed under subsection (f) with 

22 respect to a joint return, half of such refund or cred23 it shall be treated as having been made or allowed 

24 to each individual filing such return. 

25 ‘‘(f) ADVANCE REFUNDS AND CREDITS.— 


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1 ‘‘(1) IN GENERAL.—Subject to paragraphs (5) 

2 and (6), each individual who was an eligible indi3 vidual for such individual’s first taxable year begin4 ning in 2020 shall be treated as having made a pay5 ment against the tax imposed by chapter 1 for such 

6 taxable year in an amount equal to the advance re7 fund amount for such taxable year. 

8 ‘‘(2) ADVANCE REFUND AMOUNT.— 

9 ‘‘(A) IN GENERAL.—For purposes of para10 graph (1), the advance refund amount is the 

11 amount that would have been allowed as a cred12 it under this section for such taxable year if 

13 this section (other than subsection (e) and this 

14 subsection) had applied to such taxable year. 

15 ‘‘(B) TREATMENT OF DECEASED INDIVID16 UALS.—For purposes of determining the ad17 vance refund amount with respect to such tax18 able year— 

19 ‘‘(i) any individual who was deceased 

20 before January 1, 2022, shall be treated 

21 for purposes of applying subsection (e)(2) 

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1 able year (except that subparagraph (E) 

2 thereof shall not apply), 

3 ‘‘(ii) notwithstanding clause (i), in the 

4 case of a joint return with respect to which 

5 only spouse is deceased before January 1, 

6 2022, such deceased spouse was a member 

7 of the Armed Forces of the United States 

8 at any time during the taxable year, and 

9 the valid identification number of such de10 ceased spouse is included on the return of 

11 tax for the taxable year, the valid identi12 fication number of 1 (and only 1) spouse 

13 shall be treated as included on the return 

14 of tax for the taxable year for purposes of 

15 applying subsection (e)(2)(B) with respect 

16 to such joint return, and 

17 ‘‘(iii) no amount shall be determined 

18 under subsection (d)(2) with respect to any 

19 dependent of the taxpayer if the taxpayer 

20 (both spouses in the case of a joint return) 

21 was deceased before January 1, 2022. 

22 ‘‘(3) TIMING AND MANNER OF PAYMENTS.— 

23 The Secretary shall, subject to the provisions of this 

24 title and consistent with rules similar to the rules of 

25 subparagraphs (B) and (C) of section 6428A(f)(3), 


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1 refund or credit any overpayment attributable to this 

2 subsection as rapidly as possible, consistent with a 

3 rapid effort to make payments attributable to such 

4 overpayments electronically if appropriate. No re5 fund or credit shall be made or allowed under this 

6 subsection after December 31, 2022. 

7 ‘‘(4) NO INTEREST.—No interest shall be al8 lowed on any overpayment attributable to this sub9 section. 

10 ‘‘(5) APPLICATION TO INDIVIDUALS WHO HAVE

11 FILED A RETURN OF TAX FOR 2021.— 

12 ‘‘(A) APPLICATION TO 2021 RETURNS

13 FILED AT TIME OF INITIAL DETERMINATION.— 

14 If, at the time of any determination made pur15 suant to paragraph (3), the individual referred 

16 to in paragraph (1) has filed a return of tax for 

17 the individual’s first taxable year beginning in 

18 2021, paragraph (1) shall be applied with re19 spect to such individual by substituting ‘2021’ 

20 for ‘2020’. 

21 ‘‘(B) ADDITIONAL PAYMENT.— 

22 ‘‘(i) IN GENERAL.—In the case of any 

23 individual who files, before the additional 

24 payment determination date, a return of 

25 tax for such individual’s first taxable year 


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1 beginning in 2021, the Secretary shall 

2 make a payment (in addition to any pay3 ment made under paragraph (1)) to such 

4 individual equal to the excess (if any) of— 

5 ‘‘(I) the amount which would be 

6 determined under paragraph (1) 

7 (after the application of subparagraph 

8 (A)) by applying paragraph (1) as of 

9 the additional payment determination 

10 date, over 

11 ‘‘(II) the amount of any payment 

12 made with respect to such individual 

13 under paragraph (1). 

14 ‘‘(ii) ADDITIONAL PAYMENT DETER15 MINATION DATE.—The term ‘additional 

16 payment determination date’ means the 

17 earlier of— 

18 ‘‘(I) the date which is 90 days 

19 after the 2021 calendar year filing 

20 deadline, or 

21 ‘‘(II) September 1, 2022. 

22 ‘‘(iii) 2021 CALENDAR YEAR FILING

23 DEADLINE.—The term ‘2021 calendar year 

24 filing deadline’ means the date specified in 

25 section 6072(a) with respect to returns for 


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1 calendar year 2021. Such date shall be de2 termined after taking into account any pe3 riod disregarded under section 7508A if 

4 such disregard applies to substantially all 

5 returns for calendar year 2021 to which 

6 section 6072(a) applies. 

7 ‘‘(6) APPLICATION TO CERTAIN INDIVIDUALS

8 WHO HAVE NOT FILED A RETURN OF TAX FOR 2020

9 OR 2021 AT TIME OF DETERMINATION.—In the case 

10 of any individual who, at the time of any determina11 tion made pursuant to paragraph (3), has filed a tax 

12 return for neither the year described in paragraph 

13 (1) nor for the year described in paragraph (5)(A), 

14 the Secretary shall, consistent with rules similar to 

15 the rules of section 6428A(f)(5)(H)(i), apply para16 graph (1) on the basis of information available to 

17 the Secretary and shall, on the basis of such infor18 mation, determine the advance refund amount with 

19 respect to such individual. 

20 ‘‘(7) SPECIAL RULE RELATED TO TIME OF FIL21 ING RETURN.—Solely for purposes of this sub22 section, a return of tax shall not be treated as filed 

23 until such return has been processed by the Internal 

24 Revenue Service. 


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1 ‘‘(8) RESTRICTION ON USE OF CERTAIN PRE2 VIOUSLY ISSUED PREPAID DEBIT CARDS.—Payments 

3 made by the Secretary to individuals under this sec4 tion shall not be in the form of an increase in the 

5 balance of any previously issued prepaid debit card 

6 if, as of the time of the issuance of such card, such 

7 card was issued solely for purposes of making pay8 ments under section 6428, 6428A, or 6428B. 

9 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

10 such regulations or other guidance as may be necessary 

11 or appropriate to carry out the purposes of this section, 

12 including— 

13 ‘‘(1) regulations or other guidance providing 

14 taxpayers the opportunity to provide the Secretary 

15 information sufficient to allow the Secretary to make 

16 payments to such taxpayers under subsection (f) (in17 cluding the determination of the amount of such 

18 payment) if such information is not otherwise avail19 able to the Secretary, and 

20 ‘‘(2) regulations or other guidance to ensure to 

21 the maximum extent administratively practicable 

22 that, in determining the amount of any credit under 

23 subsection (a) and any credit or refund under sub24 section (f), an individual is not taken into account 

25 more than once, including by different taxpayers and 


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1 including by reason of a change in joint return sta2 tus or dependent status between the taxable year for 

3 which an advance refund amount is determined and 

4 the taxable year for which a credit under subsection 

5 (a) is determined. 

6 ‘‘(h) OUTREACH.—The Secretary shall carry out a 

7 robust and comprehensive outreach program to ensure 

8 that all taxpayers described in subsection (g)(1) learn of 

9 their eligibility for the advance refunds and credits under 

10 subsection (f); are advised of the opportunity to receive 

11 such advance refunds and credits as provided under sub12 section (g)(1); and are provided assistance in applying for 

13 such advance refunds and credits.’’. 

14 (b) TREATMENT OF CERTAIN POSSESSIONS.— 

15 (1) PAYMENTS TO POSSESSIONS WITH MIRROR

16 CODE TAX SYSTEMS.—The Secretary of the Treas17 ury shall pay to each possession of the United States 

18 which has a mirror code tax system amounts equal 

19 to the loss (if any) to that possession by reason of 

20 the amendments made by this section. Such 

21 amounts shall be determined by the Secretary of the 

22 Treasury based on information provided by the gov23 ernment of the respective possession. 

24 (2) PAYMENTS TO OTHER POSSESSIONS.—The 

25 Secretary of the Treasury shall pay to each possesVerDate Sep 11 2014 01:51 Jun 21, 2023 Jkt 039200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H1743.IH H1743

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1 sion of the United States which does not have a mir2 ror code tax system amounts estimated by the Sec3 retary of the Treasury as being equal to the aggre4 gate benefits (if any) that would have been provided 

5 to residents of such possession by reason of the 

6 amendments made by this section if a mirror code 

7 tax system had been in effect in such possession. 

8 The preceding sentence shall not apply unless the re9 spective possession has a plan, which has been ap10 proved by the Secretary of the Treasury, under 

11 which such possession will promptly distribute such 

12 payments to its residents. 

13 (3) INCLUSION OF ADMINISTRATIVE EX14 PENSES.—The Secretary of the Treasury shall pay 

15 to each possession of the United States to which the 

16 Secretary makes a payment under paragraph (1) or 

17 (2) an amount equal to the lesser of— 

18 (A) the increase (if any) of the administra19 tive expenses of such possession— 

20 (i) in the case of a possession de21 scribed in paragraph (1), by reason of the 

22 amendments made by this section, and 

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1 rying out the plan described in such para2 graph, or 

3 (B) $500,000 ($10,000,000 in the case of 

4 Puerto Rico). 

5 The amount described in subparagraph (A) shall be 

6 determined by the Secretary of the Treasury based 

7 on information provided by the government of the 

8 respective possession. 

9 (4) COORDINATION WITH CREDIT ALLOWED

10 AGAINST UNITED STATES INCOME TAXES.—No cred11 it shall be allowed against United States income 

12 taxes under section 6428C of the Internal Revenue 

13 Code of 1986 (as added by this section), nor shall 

14 any credit or refund be made or allowed under sub15 section (f) of such section, to any person— 

16 (A) to whom a credit is allowed against 

17 taxes imposed by the possession by reason of 

18 the amendments made by this section, or 

19 (B) who is eligible for a payment under a 

20 plan described in paragraph (2). 

21 (5) MIRROR CODE TAX SYSTEM.—For purposes 

22 of this subsection, the term ‘‘mirror code tax sys23 tem’’ means, with respect to any possession of the 

24 United States, the income tax system of such posses25 sion if the income tax liability of the residents of 


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1 such possession under such system is determined by 

2 reference to the income tax laws of the United 

3 States as if such possession were the United States. 

4 (6) TREATMENT OF PAYMENTS.—For purposes 

5 of section 1324 of title 31, United States Code, the 

6 payments under this subsection shall be treated in 

7 the same manner as a refund due from a credit pro8 vision referred to in subsection (b)(2) of such sec9 tion. 

10 (c) ADMINISTRATIVE PROVISIONS.— 

11 (1) DEFINITION OF DEFICIENCY.—Section 

12 6211(b)(4)(A) of the Internal Revenue Code of 1986 

13 is amended by inserting ‘‘6428C,’’ after ‘‘6428B,’’. 

14 (2) EXCEPTION FROM REDUCTION OR OFF15 SET.—Any refund payable by reason of section 

16 6428C(f) of the Internal Revenue Code of 1986 (as 

17 added by this section), or any such refund payable 

18 by reason of subsection (b) of this section, shall not 

19 be— 

20 (A) subject to reduction or offset pursuant 

21 to subsection (c), (d), (e), or (f) of section 6402 

22 of the Internal Revenue Code of 1986 or any 

23 similar authority permitting offset, or 


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1 (B) reduced or offset by other assessed 

2 Federal taxes that would otherwise be subject 

3 to levy or collection. 

4 (3) CONFORMING AMENDMENTS.— 

5 (A) Section 1324(b)(2) of title 31, United 

6 States Code, is amended by inserting ‘‘6428C,’’ 

7 after ‘‘6428B,’’. 

8 (B) The table of sections for subchapter B 

9 of chapter 65 of the Internal Revenue Code of 

10 1986 is amended by inserting after the item re11 lating to section 6428A the following new item: 

‘‘Sec. 6428C. 2022 gas prices rebate.’’. 

Æ 


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