I 
117TH CONGRESS 
2D SESSION 
H. R. 7871 
To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies 
for oil companies, to establish gas price rebates to individuals for 2022, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2022 
Mr. MCEACHIN (for himself, Mr. CASTEN, and Mr. BLUMENAUER) introduced 
the following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to repeal 
fossil fuel subsidies for oil companies, to establish gas 
price rebates to individuals for 2022, and for other pur-
poses. 
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 ‘‘People Over Petroleum 
Act’’. 
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SEC. 
2. 
AMORTIZATION 
OF 
GEOLOGICAL 
AND 
GEO-
PHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Section 167(h) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘24-month period’’ in paragraph 
(1) and inserting ‘‘7-year period’’, and 
(2) by striking paragraph (5). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2020. 
SEC. 3. PRODUCING OIL AND GAS FROM MARGINAL WELLS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by striking section 45I (and by striking 
the item relating to such section in the table of sections 
for such subpart). 
(b) CONFORMING AMENDMENT.—Section 38(b) of 
such Code is amended by striking paragraph (19). 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to credits determined for taxable 
years beginning after December 31, 2020. 
SEC. 4. ENHANCED OIL RECOVERY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by striking section 43 (and by striking 
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the item relating to such section in the table of sections 
for such subpart). 
(b) CONFORMING AMENDMENT.—Section 38(b) of 
such Code is amended by striking paragraph (6). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2020. 
SEC. 5. INTANGIBLE DRILLING AND DEVELOPMENT COSTS 
IN THE CASE OF OIL AND GAS WELLS. 
(a) IN GENERAL.—Subsection (c) of section 263 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new sentence: ‘‘This subsection 
shall not apply to amounts paid or incurred by a taxpayer 
with respect to an oil or gas well after December 31, 
2020.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2020. 
SEC. 6. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND 
GAS WELLS. 
(a) IN GENERAL.—Part I of subchapter I of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
striking section 613A (and the table of sections of such 
part is amended by striking the item relating to such sec-
tion). 
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‘‘(C) with respect to an estate or trust, 5 
percent or more of the beneficial interests in 
such estate or trust. 
For purposes of determining a significant ownership 
interest, an interest owned by or for a corporation, 
partnership, trust, or estate shall be considered as 
owned directly both by itself and proportionately by 
its shareholders, partners, or beneficiaries, as the 
case may be.’’. 
(2) Section 57(a)(1) of such Code is amended 
by striking the last sentence. 
(3) Section 291(b)(4) of such Code is amended 
by adding at the end the following: ‘‘Any reference 
in the preceding sentence to section 613A shall be 
treated as a reference to such section as in effect 
prior to the date of the enactment of the End Oil 
and Gas Tax Subsidies Act of 2021.’’. 
(4) Section 613(d) of such Code is amended by 
striking ‘‘Except as provided in section 613A, in the 
case of’’ and inserting ‘‘In the case of’’. 
(5) Section 613(e) of such Code is amended— 
(A) by striking ‘‘or section 613A’’ in para-
graph (2), and 
(B) by striking ‘‘any amount described in 
section 613A(d)(5)’’ in paragraph (3) and in-
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serting ‘‘any lease bonus, advance royalty, or 
other amount payable without regard to produc-
tion from property’’. 
(6) Section 705(a) of such Code is amended— 
(A) by inserting ‘‘and’’ at the end of para-
graph (1)(C), 
(B) by striking ‘‘; and’’ at the end of para-
graph (2)(B) and inserting a period, and 
(C) by striking paragraph (3). 
(7) Section 993(c)(2)(C) of such Code is 
amended by striking ‘‘section 613 or 613A’’ and in-
serting ‘‘section 613 (determined without regard to 
subsection (d) thereof)’’. 
(8) Section 1202(e)(3)(D) of such Code is 
amended by striking ‘‘section 613 or 613A’’ and in-
serting ‘‘section 613 (determined without regard to 
subsection (d) thereof)’’. 
(9) Section 1367(a)(2) of such Code is amended 
by inserting ‘‘and’’ at the end of subparagraph (C), 
by striking ‘‘, and’’ at the end of subparagraph (D) 
and inserting a period, and by striking subparagraph 
(E). 
(10) Section 1446(c) of such Code is amended 
by striking paragraph (2) and by redesignating 
paragraph (3) as paragraph (2). 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2020. 
SEC. 
7. 
REPEAL 
OF 
DEDUCTION 
FOR 
TERTIARY 
INJECTANTS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by striking section 193 (and the table of sections of such 
subpart is amended by striking the item relating to such 
section). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 8. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITA-
TIONS FOR WORKING INTERESTS IN OIL AND 
GAS PROPERTIES. 
(a) IN GENERAL.—Section 469(c)(3) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(C) TERMINATION.—Subparagraph (A) 
shall not apply with respect to any taxable year 
beginning after the date of the enactment of 
this Act.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 9. DEDUCTION FOR QUALIFIED BUSINESS INCOME 
NOT ALLOWED WITH RESPECT TO OIL AND 
GAS ACTIVITIES. 
(a) IN GENERAL.—Section 199A(c)(3)(B) of the In-
ternal Revenue Code of 1986 is amended by redesignating 
clause (vii) as clause (viii), and by inserting after clause 
(vi) the following new clause: 
‘‘(vii) The production, refining, proc-
essing, transportation, or distribution of 
oil, gas, or any primary product thereof.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 10. PROHIBITION ON USING LAST-IN, FIRST-OUT AC-
COUNTING FOR OIL AND GAS COMPANIES. 
(a) IN GENERAL.—Section 472 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(h) OIL AND GAS COMPANIES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, a major integrated oil com-
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pany may not use the method provided in subsection 
(b) in inventorying of any goods. 
‘‘(2) MAJOR INTEGRATED OIL COMPANY.—For 
purposes of this subsection, the term ‘major inte-
grated oil company’ means, with respect to any tax-
able year, a producer of crude oil— 
‘‘(A) which has an average daily worldwide 
production of crude oil of at least 500,000 bar-
rels for the taxable year, 
‘‘(B) which has gross receipts in excess of 
$1,000,000,000 for the taxable year, and 
‘‘(C) the average daily refinery runs of the 
taxpayer and related persons for the taxable 
year exceed 75,000 barrels. 
‘‘(3) SPECIAL RULES.— 
‘‘(A) CRUDE PRODUCTION AND GROSS RE-
CEIPTS.—For purposes of subparagraphs (A) 
and (B) of paragraph (2)— 
‘‘(i) CONTROLLED GROUPS AND COM-
MON CONTROL.—All persons treated as a 
single employer under subsections (a) and 
(b) of section 52 shall be treated as 1 per-
son. 
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‘‘(ii) SHORT
TAXABLE
YEARS.—In 
case of a short taxable year, the rule under 
section 448(c)(3)(B) shall apply. 
‘‘(B) AVERAGE DAILY REFINERY RUNS.— 
For purposes of paragraph (2)(C)— 
‘‘(i) IN GENERAL.—The average daily 
refinery runs for any taxable year shall be 
determined by dividing the aggregate refin-
ery runs for the taxable year by the num-
ber of days in the taxable year. 
‘‘(ii) RELATED
PERSONS.—A person 
is a related person with respect to the tax-
payer if a significant ownership interest in 
either the taxpayer or such person is held 
by the other, or if a third person has a sig-
nificant ownership interest in both the tax-
payer and such person. 
‘‘(iii) SIGNIFICANT
OWNERSHIP
IN-
TEREST.—For purposes of clause (ii), the 
term 
‘significant 
ownership 
interest’ 
means— 
‘‘(I) with respect to any corpora-
tion, 15 percent or more in value of 
the outstanding stock of such corpora-
tion, 
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