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106TH CONGRESS
2D SESSION
H. R. 5401
To amend the Internal Revenue Code of 1986 to extend the section 29
credit for producing fuel from a nonconventional source.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 5, 2000
Mr. MOORE (for himself, Mr. WATKINS, Mr. MORAN of Kansas, Mr. STEN-
HOLM, Mr. SISISKY, Mr. CONDIT, Mr. TAYLOR of Mississippi, Mr.
CRAMER, Mr. BISHOP, Mr. POMEROY, Mr. SCOTT, Ms. MCCARTHY of
Missouri, Mr. BERRY, Mr. JOHN, Mr. SANDLIN, Mr. TURNER, and Mr.
SHOWS) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to extend
the section 29 credit for producing fuel from a non-
conventional source.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Energy Security for
American Consumers Act of 2000’’.
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SEC. 2. EXTENSION OF CREDIT FOR PRODUCING FUEL
FROM A NONCONVENTIONAL SOURCE.
(a) EXTENSION OF CREDIT.—Subsection (f) of sec-
tion 29 of the Internal Revenue Code of 1986 (relating
to credit for producing fuel from a nonconventional
source) is amended—
(1) in paragraph (1)(A), by inserting before
‘‘or’’ the following: ‘‘or from a well drilled after the
date of the enactment of the Energy Security for
American Consumers Act of 2000, and before Janu-
ary 1, 2011,’’,
(2) in paragraph (1)(B), by inserting before
‘‘and’’ at the end the following: ‘‘or placed in service
after the date of the enactment of the Energy Secu-
rity for American Consumers Act of 2000, and be-
fore January 1, 2011,’’, and
(3) in paragraph (2), by striking ‘‘2003’’ and
inserting ‘‘2013’’.
(b) REDUCTION IN AMOUNT OF CREDIT BY 20 PER-
CENT PER YEAR STARTING IN 2007.— Subsection (a) of
section 29 of such Code is amended to read as follows:
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—There shall be allowed as a
credit against the tax imposed by this chapter for
the taxable year an amount equal to—
‘‘(A) the applicable amount, multiplied by
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‘‘(B) the barrel-of-oil equivalent of quali-
fied fuels—
‘‘(i) sold by the taxpayer to an unre-
lated person during the taxable year, and
‘‘(ii) the production of which is attrib-
utable to the taxpayer.
‘‘(2) APPLICABLE AMOUNT.—For purposes of
paragraph (1), the applicable amount is the amount
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.’’
(c) CREDIT ALLOWED AGAINST BOTH REGULAR TAX
AND ALTERNATIVE MINIMUM TAX.—Paragraph (6) of
section 29(b) of such Code is amended to read as follows:
‘‘(6) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the excess of—
‘‘(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax im-
posed by section 55, over
‘‘(B) the sum of the credits allowable
under this part (other than subpart C and this
section) and under section 1397E.’’
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(d) QUALIFIED FUELS TO INCLUDE HEAVY OIL.—
Subsection (c) of section 29 of such Code (defining quali-
fied fuels) is amended—
(1) in paragraph (1), by striking ‘‘and’’ at the
end of subparagraph (B), by striking the period at
the end of subparagraph (C) and inserting ‘‘, and’’,
and by adding at the end the following new subpara-
graph:
‘‘(D) heavy oil, as defined in section
613A(c)(6)(7).’’, and
(2) by adding at the end the following new
paragraph:
‘‘(4) SPECIAL RULE FOR HEAVY OIL.—Heavy
oil shall be considered to be a qualified fuel only if
it is produced from a well drilled, or in a facility
placed in service, after the date of the enactment of
the Energy Security for American Consumers Act of
2000, and before January 1, 2011.’’
(e) REPEAL OF SUPERSEDED SUBSECTION.—Sub-
section (g) of section 29 of such Code is repealed.
(f) EFFECTIVE DATE.—The amendments made by
this Act shall apply to taxable years beginning after De-
cember 31, 2000.
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