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.’’. 
(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. 
TITLE III—REVENUE 
PROVISIONS 
SEC. 301. LIMITATION OF DEDUCTION FOR INCOME AT-
TRIBUTABLE TO DOMESTIC PRODUCTION OF 
OIL, GAS, OR PRIMARY PRODUCTS THEREOF. 
(a) DENIAL
OF DEDUCTION
FOR MAJOR INTE-
GRATED OIL COMPANIES FOR INCOME ATTRIBUTABLE TO
DOMESTIC PRODUCTION
OF OIL, GAS, OR PRIMARY 
PRODUCTS THEREOF.— 
(1) 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 inserting after clause (iii) the following 
new clause: 
‘‘(iv) in the case of any major inte-
grated oil company (as defined in section 
167(h)(5)(B)), the production, refining, 
processing, transportation, or distribution 
of oil, gas, or any primary product thereof 
during any taxable year described in sec-
tion 167(h)(5)(B).’’. 
(2) PRIMARY PRODUCT.—Section 199(c)(4)(B) 
is amended by adding at the end the following flush 
sentence: 
‘‘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.’’. 
(b) LIMITATION ON OIL RELATED QUALIFIED PRO-
DUCTION ACTIVITIES INCOME FOR TAXPAYERS OTHER 
THAN MAJOR INTEGRATED OIL COMPANIES.—
(1) IN GENERAL.—Section 199(d) is amended 
by redesignating paragraph (9) as paragraph (10) 
and by inserting after paragraph (8) the following 
new paragraph: 
‘‘(9) SPECIAL RULE FOR TAXPAYERS WITH OIL 
RELATED
QUALIFIED
PRODUCTION
ACTIVITIES
IN-
COME.— 
‘‘(A) IN GENERAL.—If a taxpayer (other 
than a major integrated oil company (as defined 
in section 167(h)(5)(B))) has oil related quali-
fied production activities income for any taxable 
year beginning after 2009, the amount of the 
deduction under subsection (a) shall be reduced 
by 3 percent of the least of— 
‘‘(i) the oil related qualified produc-
tion activities income of the taxpayer for 
the taxable year, 
‘‘(ii) the qualified production activities 
income of the taxpayer for the taxable 
year, or 
‘‘(iii) 
taxable 
income 
(determined 
without regard to this section). 
‘‘(B) OIL
RELATED
QUALIFIED
PRODUC-
TION
ACTIVITIES
INCOME.—The term ‘oil re-
lated qualified production activities income’
means for any taxable year the qualified pro-
duction activities income which is attributable 
to the production, refining, processing, trans-
portation, or distribution of oil, gas, or any pri-
mary product thereof during such taxable 
year.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
199(d)(2) (relating to application to individuals) is 
amended by striking ‘‘subsection (a)(1)(B)’’ and in-
serting ‘‘subsections (a)(1)(B) and (d)(9)(A)(iii)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 302. CLARIFICATION OF DETERMINATION OF FOREIGN 
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-
graph (A), and by inserting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) so much of any transportation of 
such minerals as occurs before the fair market 
value event, or’’.
(b) FAIR MARKET VALUE EVENT.—Subsection (c) of 
section 907 is amended by adding at the end the following 
new paragraph: 
‘‘(6) FAIR MARKET VALUE EVENT.—For pur-
poses of this section, the term ‘fair market value 
event’ means, with respect to any mineral, the first 
point in time at which such mineral— 
‘‘(A) has a fair market value which can be 
determined on the basis of a transfer, which is 
an arm’s length transaction, of such mineral 
from the taxpayer to a person who is not re-
lated (within the meaning of section 482) to 
such taxpayer, or 
‘‘(B) is at a location at which the fair mar-
ket value is readily ascertainable by reason of 
transactions among unrelated third parties with 
respect to the same mineral (taking into ac-
count source, location, quality, and chemical 
composition).’’. 
(c) SPECIAL
RULE
FOR
CERTAIN
PETROLEUM 
TAXES.—Subsection (c) of section 907, as amended by 
subsection (b), is amended to by adding at the end the 
following new paragraph: 
‘‘(7) OIL AND GAS TAXES.—In the case of any 
tax imposed by a foreign country which is limited in