least 80 percent’’ each place it ap-
pears in such subsection. 
(ii) 
NONINCORPORATED
PERSONS 
UNDER COMMON CONTROL.—Under regula-
tions prescribed by the Secretary, prin-
ciples similar to the principles of clause (i) 
shall apply to a group of persons under 
common control where 1 or more of such 
persons is not a corporation. 
(7) OTHER LAW APPLICABLE.—All provisions of 
law, including penalties, applicable with respect to 
the taxes imposed by section 4081 of such Code 
shall, insofar as applicable and not inconsistent with 
the provisions of this paragraph, apply with respect 
to the floor stock taxes imposed by paragraph (1) to 
the same extent as if such taxes were imposed by 
such section 4081. 
(d) BENEFITS
OF TAX REDUCTION SHOULD BE 
PASSED ON TO CONSUMERS.— 
(1) PASSTHROUGH TO CONSUMERS.— 
(A) SENSE OF CONGRESS.—It is the sense 
of Congress that— 
(i) consumers immediately receive the 
benefit of the reduction in taxes under this 
section, and 
VerDate Aug 31 2005 
18:27 May 07, 2006
Jkt 049200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5285.IH
H5285
sroberts on PROD1PC70 with BILLS
(ii) transportation motor fuels pro-
ducers and other dealers take such actions 
as necessary to reduce transportation 
motor fuels prices to reflect such reduc-
tion, including immediate credits to cus-
tomer accounts representing tax refunds 
allowed as credits against excise tax de-
posit payments under the floor stocks re-
fund provisions of this section. 
(B) STUDY.— 
(i) IN
GENERAL.—The Comptroller 
General of the United States shall conduct 
a study of the reduction of taxes under 
this section to determine whether there has 
been a passthrough of such reduction. 
(ii) REPORT.—Not later than 30 days 
after the date of the enactment of this Act, 
the Comptroller General of the United 
States shall report to the Committee on 
Finance of the Senate and the Committee 
on Ways and Means of the House of Rep-
resentatives the results of the study con-
ducted under clause (i). 
VerDate Aug 31 2005 
18:27 May 07, 2006
Jkt 049200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5285.IH
H5285
sroberts on PROD1PC70 with BILLS
SEC. 3. ELIMINATION OF CERTAIN PRODUCTION INCEN-
TIVES. 
(a) IN GENERAL.—Sections 342, 344, 345, 346, 353, 
and 383 and subtitle J of title IX of the Energy Policy 
Act of 2005 and section 107(k) of the Naval Petroleum 
Reserves Production Act of 1976 (as added by section 347 
of the Energy Policy Act of 2005) are repealed. 
(b) EFFECTIVE DATE.—The repeals made by sub-
section (a) shall take effect on the date of the enactment 
of the Energy Policy Act of 2005. 
SEC. 4. REVALUATION OF LIFO INVENTORIES OF LARGE IN-
TEGRATED OIL COMPANIES. 
(a) GENERAL RULE.—Notwithstanding any other 
provision of law, if a taxpayer is an applicable integrated 
oil company for its last taxable year ending in calendar 
year 2005, the taxpayer shall— 
(1) increase, effective as of the close of such 
taxable year, the value of each historic LIFO layer 
of inventories of crude oil, natural gas, or any other 
petroleum product (within the meaning of section 
4611) by the layer adjustment amount, and 
(2) decrease its cost of goods sold for such tax-
able year by the aggregate amount of the increases 
under paragraph (1). 
If the aggregate amount of the increases under paragraph 
(1) exceed the taxpayer’s cost of goods sold for such tax-
VerDate Aug 31 2005 
18:27 May 07, 2006
Jkt 049200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5285.IH
H5285
sroberts on PROD1PC70 with BILLS