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is retired or abandoned during the 24-month period 
described in paragraph (1), no deduction shall be al-
lowed on account of such retirement or abandon-
ment and the amortization deduction under this sub-
section shall continue with respect to such payment. 
‘‘(5) DELAY RENTAL PAYMENTS.—For purposes 
of this subsection, the term ‘delay rental payment’ 
means an amount paid for the privilege of deferring 
development of an oil or gas well under an oil or gas 
lease.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
SEC. 1315. AMORTIZATION OF GEOLOGICAL AND GEO-
PHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Section 167 (relating to deprecia-
tion), as amended by section 1314 of this title, is amended 
by redesignating subsection (i) as subsection (j) and by 
inserting after subsection (h) the following new subsection: 
‘‘(i) AMORTIZATION
OF GEOLOGICAL
AND GEO-
PHYSICAL EXPENDITURES.— 
‘‘(1) IN
GENERAL.—Any geological and geo-
physical expenses paid or incurred in connection 
with the exploration for, or development of, oil or
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gas within the United States (as defined in section 
638) shall be allowed as a deduction ratably over the 
24-month period beginning on the date that such ex-
pense was paid or incurred. 
‘‘(2) SPECIAL
RULES.—For purposes of this 
subsection, rules similar to the rules of paragraphs 
(2), (3), and (4) of subsection (h) shall apply.’’. 
(b) CONFORMING AMENDMENT.—Section 263A(c)(3) 
is amended by inserting ‘‘167(h), 167(i),’’ after ‘‘under 
section’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
SEC. 1316. ADVANCED LEAN BURN TECHNOLOGY MOTOR 
VEHICLE CREDIT. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 (relating to other credits) is 
amended by adding at the end the following: 
‘‘SEC. 30B. ADVANCED LEAN BURN TECHNOLOGY MOTOR 
VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of the 
credit amounts determined under subsection (b) with re-
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spect to each qualified advanced lean burn technology 
motor vehicle placed in service by the taxpayer during the 
taxable year. 
‘‘(b) CREDIT AMOUNT.—For purposes of subsection 
(a)— 
‘‘(1) FUEL
EFFICIENCY.—The credit amount 
with respect to any vehicle shall be— 
‘‘(A) $500, if the city fuel economy of such 
vehicle is at least 125 percent but less than 150 
percent of the 2000 model year city fuel econ-
omy for a vehicle in the same inertia weight 
class, 
‘‘(B) $1,000, if the city fuel economy of 
such vehicle is at least 150 percent but less 
than 175 percent of the 2000 model year city 
fuel economy for a vehicle in the same inertia 
weight class, 
‘‘(C) $1,500, if the city fuel economy of 
such vehicle is at least 175 percent but less 
than 200 percent of the 2000 model year city 
fuel economy for a vehicle in the same inertia 
weight class, 
‘‘(D) $2,000, if the city fuel economy of 
such vehicle is at least 200 percent but less 
than 225 percent of the 2000 model year city
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fuel economy for a vehicle in the same inertia 
weight class, 
‘‘(E) $2,500, if the city fuel economy of 
such vehicle is at least 225 percent but less 
than 250 percent of the 2000 model year city 
fuel economy for a vehicle in the same inertia 
weight class, and 
‘‘(F) $3,000, if the city fuel economy of 
such vehicle is at least 250 percent of the 2000 
model year city fuel economy for a vehicle in 
the same inertia weight class. 
‘‘(2) CONSERVATION.—The credit amount de-
termined under paragraph (1) with respect to any 
vehicle shall be increased by— 
‘‘(A) $250, if the lifetime fuel savings of 
such vehicle is at least 1,500 gallons of motor 
fuel but less than 2,500 gallons of motor fuel, 
and 
‘‘(B) $500, if the lifetime fuel savings of 
such vehicle is at least 2,500 gallons of motor 
fuel. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—The 
credit allowed under subsection (a) for the taxable year 
shall not exceed the excess of—
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‘‘(1) the sum of the regular tax liability (as de-
fined in section 26(b)) plus the tax imposed by sec-
tion 55, over 
‘‘(2) the sum of the credits allowable under sub-
part A and sections 27 and 30A for the taxable 
year. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED ADVANCED LEAN BURN TECH-
NOLOGY MOTOR VEHICLE.—The term ‘qualified ad-
vanced lean burn technology motor vehicle’ means a 
motor vehicle— 
‘‘(A) the original use of which commences 
with the taxpayer, 
‘‘(B) powered by an internal combustion 
engine that— 
‘‘(i) is designed to operate primarily 
using more air than is necessary for com-
plete combustion of the fuel, and 
‘‘(ii) incorporates direct injection, 
‘‘(C) that only uses diesel fuel (as defined 
in section 4083(a)(3)), 
‘‘(D) the city fuel economy of which is at 
least 125 percent of the 2000 model year city 
fuel economy for a vehicle in the same inertia 
weight class, and