I 
111TH CONGRESS 
2D SESSION 
H. R. 5644 
To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies 
for large oil companies. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 30, 2010 
Mr. BLUMENAUER (for himself, Mr. HOLT, Mr. QUIGLEY, Ms. LEE of Cali-
fornia, Mr. HINCHEY, Mr. WELCH, Ms. SCHAKOWSKY, Mr. MORAN of 
Virginia, Ms. GIFFORDS, Ms. PINGREE of Maine, Mr. CARNAHAN, Mr. 
COHEN, Mr. TONKO, Mr. POLIS of Colorado, and Mr. MCDERMOTT) in-
troduced 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 large oil companies. 
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 ‘‘End Big Oil Tax Sub-
sidies Act of 2010’’. 
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SEC. 
2. 
AMORTIZATION 
OF 
GEOLOGICAL 
AND 
GEO-
PHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Subparagraph (A) of section 
167(h)(5) of the Internal Revenue Code of 1986 is amend-
ed by striking ‘‘major integrated oil company’’ and insert-
ing ‘‘covered large oil company’’. 
(b) COVERED LARGE OIL COMPANY.—Paragraph (5) 
of section 167(h) of such Act is amended by redesignating 
subparagraph (B) as subparagraph (C) and by inserting 
after subparagraph (A) the following new subparagraph: 
‘‘(B) COVERED
LARGE
OIL
COMPANY.— 
For purposes of this paragraph, the term ‘cov-
ered large oil company’ means a taxpayer 
which— 
‘‘(i) is a major integrated oil com-
pany, or 
‘‘(ii) has gross receipts in excess of 
$50,000,000 for the taxable year. 
For purposes of clause (ii), all persons treated 
as a single employer under subsections (a) and 
(b) of section 52 shall be treated as 1 person.’’. 
(c) CONFORMING AMENDMENT.—The heading for 
paragraph (5) of section 167(h) of such Code is amended 
by inserting ‘‘AND OTHER LARGE TAXPAYERS’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2010. 
SEC. 3. PRODUCING OIL AND GAS FROM MARGINAL WELLS. 
(a) IN GENERAL.—Section 45I of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(e) EXCEPTION
FOR TAXPAYER WHO IS NOT 
SMALL, INDEPENDENT OIL AND GAS COMPANY.— 
‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply to any taxpayer which is not a small, inde-
pendent oil and gas company for the taxable year. 
‘‘(2) AGGREGATION
RULE.—For purposes of 
paragraph (1), all persons treated as a single em-
ployer under subsections (a) and (b) of section 52 
shall be treated as 1 person.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to credits determined for taxable 
years beginning after December 31, 2010. 
SEC. 4. ENHANCED OIL RECOVERY CREDIT. 
(a) IN GENERAL.—Section 43 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(f) EXCEPTION
FOR TAXPAYER WHO IS NOT 
SMALL, INDEPENDENT OIL AND GAS COMPANY.— 
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‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply to any taxpayer which is not a small, inde-
pendent oil and gas company for the taxable year. 
‘‘(2) AGGREGATION
RULE.—For purposes of 
paragraph (1), all persons treated as a single em-
ployer under subsections (a) and (b) of section 52 
shall be treated as 1 person.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2010. 
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 
in any taxable year in which such taxpayer is not a small, 
independent oil and gas company, determined by deeming 
all persons treated as a single employer under subsections 
(a) and (b) of section 52 as 1 person.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2010. 
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SEC. 6. PERCENTAGE DEPLETION. 
(a) IN GENERAL.—Section 613A of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(f) EXCEPTION
FOR TAXPAYER WHO IS NOT 
SMALL, INDEPENDENT OIL AND GAS COMPANY.— 
‘‘(1) IN
GENERAL.—This section and section 
611 shall not apply to any taxpayer which is not a 
small, independent oil and gas company for the tax-
able year. 
‘‘(2) AGGREGATION
RULE.—For purposes of 
paragraph (1), all persons treated as a single em-
ployer under subsections (a) and (b) of section 52 
shall be treated as 1 person.’’. 
(b) CONFORMING AMENDMENT.—Section 613A(c)(1) 
of such Code is amended by striking ‘‘subsection (d)’’ and 
inserting ‘‘subsections (d) and (f)’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
SEC. 7. TERTIARY INJECTANTS. 
(a) IN GENERAL.—Section 193 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(d) EXCEPTION
FOR TAXPAYER WHO IS NOT 
SMALL, INDEPENDENT OIL AND GAS COMPANY.— 
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‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply to any taxpayer which is not a small, inde-
pendent oil and gas company for the taxable year. 
‘‘(2) EXCEPTION FOR QUALIFIED CARBON DI-
OXIDE
DISPOSED
IN
SECURE
GEOLOGICAL
STOR-
AGE.—Paragraph (1) shall not apply in the case of 
any qualified tertiary injectant expense paid or in-
curred for any tertiary injectant is qualified carbon 
dioxide (as defined in section 45Q(b)) which is dis-
posed of by the taxpayer in secure geological storage 
(as defined by section 45Q(d)). 
‘‘(3) AGGREGATION
RULE.—For purposes of 
paragraph (1), all persons treated as a single em-
ployer under subsections (a) and (b) of section 52 
shall be treated as 1 person.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenses incurred after Decem-
ber 31, 2010. 
SEC. 8. PASSIVE ACTIVITY LOSSES AND CREDITS LIMITED. 
(a) IN GENERAL.—Paragraph (3) of section 469(c) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
‘‘(C) EXCEPTION FOR TAXPAYER WHO IS 
NOT SMALL, INDEPENDENT OIL AND GAS COM-
PANY.— 
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‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply to any taxpayer which is 
not a small, independent oil and gas com-
pany for the taxable year. 
‘‘(ii) AGGREGATION RULE.—For pur-
poses of clause (i), all persons treated as 
a single employer under subsections (a) 
and (b) of section 52 shall be treated as 1 
person.’’. 
SEC. 9. INCOME ATTRIBUTABLE TO DOMESTIC PRODUC-
TION ACTIVITIES. 
(a) IN GENERAL.—Section 199 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(e) EXCEPTION
FOR TAXPAYER WHO IS NOT 
SMALL, INDEPENDENT OIL AND GAS COMPANY.—Sub-
section (a) shall not apply to the income derived from the 
production, transportation, or distribution of oil, natural 
gas, or any primary product (within the meaning of sub-
section (d)(9)) thereof by any taxpayer which for the tax-
able year is an oil and gas company which is not a small, 
independent oil and gas company.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
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SEC. 10. PROHIBITION ON USING LAST IN, FIRST-OUT AC-
COUNTING FOR MAJOR INTEGRATED OIL 
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) MAJOR INTEGRATED OIL COMPANIES.—Not-
withstanding any other provision of this section, a major 
integrated oil company (as defined in section 167(h)) may 
not use the method provided in subsection (b) in 
inventorying of any goods.’’. 
(b) EFFECTIVE DATE AND SPECIAL RULE.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall apply to taxable years beginning 
after December 31, 2010. 
(2) CHANGE IN METHOD OF ACCOUNTING.—In 
the case of any taxpayer required by the amendment 
made by this section to change its method of ac-
counting for its first taxable year beginning after the 
date of the enactment of this Act— 
(A) such change shall be treated as initi-
ated by the taxpayer, 
(B) such change shall be treated as made 
with the consent of the Secretary of the Treas-
ury, and 
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