874 
vider with net metering upon the request 
of such customer. 
‘‘(B) ENERGY
MANAGEMENT
DEVICE.— 
For purposes of subparagraph (A), the term 
‘energy management device’ means any time- 
based meter and related communication equip-
ment which is capable of being used by the tax-
payer as part of a system that— 
‘‘(i) measures and records electricity 
usage data on a time-differentiated basis 
in at least 24 separate time segments per 
day, 
‘‘(ii) provides for the exchange of in-
formation between supplier or provider and 
the customer’s energy management device 
in support of time-based rates or other 
forms of demand response, and 
‘‘(iii) provides data to such supplier or 
provider so that the supplier or provider 
can provide energy usage information to 
customers electronically. 
‘‘(C) NET
METERING.—For purposes of 
subparagraph (A), the term ‘net metering’ 
means allowing customers a credit for providing 
electricity to the supplier or provider.’’. 
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875 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
Subtitle C—Revenue Provisions 
PART 1—DENIAL OF OIL AND GAS TAX BENEFITS 
SEC. 10201. DENIAL OF DEDUCTION FOR INCOME ATTRIB-
UTABLE TO DOMESTIC PRODUCTION OF OIL, 
NATURAL 
GAS, 
OR 
PRIMARY 
PRODUCTS 
THEREOF. 
(a) IN GENERAL.—Subparagraph (B) of section 
199(c)(4) (relating to exceptions) is amended by striking 
‘‘or’’ at the end of clause (ii), by striking the period at 
the end of clause (iii) and inserting ‘‘, or’’, and by insert-
ing after clause (iii) the following new clause: 
‘‘(iv) the sale, exchange, or other dis-
position of oil, natural gas, or any primary 
product thereof.’’. 
(b) PRIMARY PRODUCT.—Section 199(c)(4)(B) is 
amended by adding at the end the following flush sen-
tence: 
‘‘For purposes of clause (iv), the term ‘primary 
product’ has the same meaning as when used in 
section 927(a)(2)(C), as in effect before its re-
peal.’’. 
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876 
(c) CONFORMING AMENDMENTS.—Section 199(c)(4) 
is amended— 
(1) in subparagraph (A)(i)(III) by striking 
‘‘electricity, natural gas,’’ and inserting ‘‘electricity’’, 
and 
(2) in subparagraph (B)(ii) by striking ‘‘elec-
tricity, natural gas,’’ and inserting ‘‘electricity’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 10202. 7-YEAR AMORTIZATION OF GEOLOGICAL AND 
GEOPHYSICAL EXPENDITURES FOR CERTAIN 
MAJOR INTEGRATED OIL COMPANIES. 
(a) IN GENERAL.—Subparagraph (A) of section 
167(h)(5) (relating to special rule for major integrated oil 
companies) is amended by striking ‘‘5-year’’ and inserting 
‘‘7-year’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
SEC. 10203. CLARIFICATION OF DETERMINATION OF FOR-
EIGN OIL AND GAS EXTRACTION INCOME. 
(a) IN GENERAL.—Paragraph (1) of section 907(c) 
is amended by redesignating subparagraph (B) as sub-
paragraph (C), by striking ‘‘or’’ at the end of subpara-
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