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, 2011. 
SEC. 206. 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.— 
‘‘(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)). 
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‘‘(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, 2011. 
SEC. 207. PASSIVE ACTIVITY LOSSES AND CREDITS LIM-
ITED. 
Paragraph (3) of section 469(c) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
‘‘(C) EXCEPTION FOR TAXPAYER WHO IS 
NOT SMALL, INDEPENDENT OIL AND GAS COM-
PANY.— 
‘‘(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.’’. 
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SEC. 208. 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, 2011. 
TITLE 
III—INCREASED 
REVE-
NUES TO REDUCE FEDERAL 
BUDGET DEFICIT 
SEC. 301. INCREASED REVENUES TO REDUCE FEDERAL 
BUDGET DEFICIT. 
Any increase in revenues by reason of the amend-
ments made by this Act shall be applied to reduce the Fed-
eral budget deficit, or, for any fiscal year for which there 
is no Federal budget deficit, to reduce the Federal debt. 
Æ 
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