125 
SEC. 514. MODIFICATION OF DEFINITION OF MAJOR INTE-
GRATED OIL COMPANY. 
(a) IN GENERAL.—Paragraph (5) of section 167(h) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new subparagraph: 
‘‘(C) CERTAIN
SUCCESSORS
IN
INTER-
EST.—For purposes of this paragraph, the term 
‘major integrated oil company’ includes any 
successor in interest of a company that was de-
scribed in subparagraph (B) in any taxable 
year, if such successor controls more than 50 
percent of the crude oil production or natural 
gas production of such company.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Subparagraph (B) of section 
167(h)(5) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘except as provided in sub-
paragraph (C),’’ after ‘‘For purposes of this para-
graph,’’. 
(2) TAXABLE YEARS TESTED.—Clause (iii) of 
section 167(h)(5)(B) of such Code is amended— 
(A) by striking ‘‘does not apply by reason 
of paragraph (4) of section 613A(d)’’ and in-
serting ‘‘did not apply by reason of paragraph 
(4) of section 613A(d) for any taxable year 
after 2004’’, and 
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(B) by striking ‘‘does not apply’’ in sub-
clause (II) and inserting ‘‘did not apply for the 
taxable year’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 515. REPEAL OF OUTER CONTINENTAL SHELF DEEP 
WATER AND DEEP GAS ROYALTY RELIEF. 
(a) IN GENERAL.—Sections 344 and 345 of the En-
ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 
repealed. 
(b) ADMINISTRATION.—The Secretary of the Interior 
shall not be required to provide for royalty relief in the 
lease sale terms beginning with the first lease sale held 
on or after the date of enactment of this Act for which 
a final notice of sale has not been published. 
SEC. 516. COORDINATION OF AMERICAN OPPORTUNITY 
CREDIT AND LIFETIME LEARNING CREDIT 
WITH PELL GRANTS NOT USED FOR QUALI-
FIED TUITION AND RELATED EXPENSES. 
(a) IN GENERAL.—Section 25A(g)(2) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(2) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS, ETC.— 
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‘‘(A) IN GENERAL.—The amount of quali-
fied tuition and related expenses otherwise 
taken into account under subsection (a) with re-
spect to an individual for an academic period 
shall be reduced (before the application of sub-
sections (b), (c), and (d)) by the sum of any 
amounts paid for the benefit of such individual 
which are allocable to such period as— 
‘‘(i) a qualified scholarship which is 
excludable from gross income under section 
117, 
‘‘(ii) an educational assistance allow-
ance under chapter 30, 31, 32, 34, or 35 
of title 38, United States Code, or under 
chapter 1606 of title 10, United States 
Code, and 
‘‘(iii) a payment (other than a gift, 
bequest, devise, or inheritance within the 
meaning of section 102(a)) for such indi-
vidual’s educational expenses, or attrib-
utable to such individual’s enrollment at an 
eligible educational institution, which is ex-
cludable from gross income under any law 
of the United States. 
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‘‘(B) COORDINATION WITH PELL GRANTS 
NOT USED FOR QUALIFIED TUITION AND RE-
LATED EXPENSES.—For purposes of subpara-
graph (A), the amount of any Federal Pell 
Grant under section 401 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070a) shall be 
reduced (but not below zero) by the amount of 
expenses (other than qualified tuition and re-
lated expenses) which are taken into account in 
determining the cost of attendance (as defined 
in section 472 of the Higher Education Act of 
1965, as in effect on the date of the enactment 
of this subparagraph) of such individual at an 
eligible educational institution for the academic 
period for which the credit under this section is 
being determined.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 517. EXPANSION OF PELL GRANT EXCLUSION FROM 
GROSS INCOME. 
(a) IN GENERAL.—Paragraph (1) of section 117(b) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking the period at the end and insert-
ing ‘‘, or’’, 
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(2) by striking ‘‘received by an individual as a 
scholarship’’ and inserting the following: ‘‘received 
by an individual— 
‘‘(A) as a scholarship’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) as a Federal Pell Grant under section 
401 of the Higher Education Act of 1965 (20 
U.S.C. 1070a).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
Æ 
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