I 
112TH CONGRESS 
2D SESSION 
H. R. 4108 
To amend the Internal Revenue Code of 1986 to increase and extend the 
credit for qualifying advanced energy projects, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 29, 2012 
Ms. BERKLEY introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Nat-
ural Resources and the Budget, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to increase 
and extend the credit for qualifying advanced energy 
projects, and for other purposes. 
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 ‘‘Clean Energy Jobs 
Act of 2012’’. 
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TITLE I—INCREASE AND EXTEN-
SION OF CREDIT FOR QUALI-
FYING 
ADVANCED 
ENERGY 
PROJECTS 
SEC. 101. INCREASE AND EXTENSION OF CREDIT FOR 
QUALIFYING ADVANCED ENERGY PROJECTS. 
(a) IN GENERAL.—Subsection (d) of section 48C of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(6) ADDITIONAL 2012 ALLOCATIONS.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of the enactment of this 
paragraph, the Secretary, in consultation with 
the Secretary of Energy, shall establish a pro-
gram to consider and award certifications for 
qualified investments eligible for credits under 
this section to qualifying advanced energy 
project sponsors with respect to applications re-
ceived on or after the date of the enactment of 
this paragraph. 
‘‘(B) LIMITATION.—The total amount of 
credits that may be allocated under the pro-
gram described in subparagraph (A) shall not 
exceed $5,000,000,000. 
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‘‘(C) APPLICATION OF CERTAIN RULES.— 
Rules similar to the rules of paragraphs (2), 
(3), (4), and (5) shall apply for purposes of the 
program described in subparagraph (A), except 
that applicants shall have 2 years from the date 
that the Secretary establishes such program to 
submit applications.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
TITLE II—REVENUE OFFSETS 
Subtitle A—Close Big Oil Tax 
Loopholes 
SEC. 201. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
APPLICABLE TO MAJOR INTEGRATED OIL 
COMPANIES WHICH ARE DUAL CAPACITY 
TAXPAYERS. 
(a) IN GENERAL.—Section 901 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(n) as subsection (o) and by inserting after subsection (m) 
the following new subsection: 
‘‘(n) SPECIAL RULES RELATING TO MAJOR INTE-
GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY 
TAXPAYERS.— 
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‘‘(1) GENERAL
RULE.—Notwithstanding any 
other provision of this chapter, any amount paid or 
accrued by a dual capacity taxpayer which is a 
major integrated oil company (as defined in section 
167(h)(5)(B)) to a foreign country or possession of 
the United States for any period shall not be consid-
ered a tax— 
‘‘(A) if, for such period, the foreign coun-
try or possession does not impose a generally 
applicable income tax, or 
‘‘(B) to the extent such amount exceeds 
the amount (determined in accordance with reg-
ulations) which— 
‘‘(i) is paid by such dual capacity tax-
payer pursuant to the generally applicable 
income tax imposed by the country or pos-
session, or 
‘‘(ii) would be paid if the generally ap-
plicable income tax imposed by the country 
or possession were applicable to such dual 
capacity taxpayer. 
Nothing in this paragraph shall be construed to 
imply the proper treatment of any such amount not 
in excess of the amount determined under subpara-
graph (B). 
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‘‘(2) DUAL
CAPACITY
TAXPAYER.—For pur-
poses of this subsection, the term ‘dual capacity tax-
payer’ means, with respect to any foreign country or 
possession of the United States, a person who— 
‘‘(A) is subject to a levy of such country or 
possession, and 
‘‘(B) receives (or will receive) directly or 
indirectly a specific economic benefit (as deter-
mined in accordance with regulations) from 
such country or possession. 
‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘generally 
applicable income tax’ means an income tax (or 
a series of income taxes) which is generally im-
posed under the laws of a foreign country or 
possession on income derived from the conduct 
of a trade or business within such country or 
possession. 
‘‘(B) EXCEPTIONS.—Such term shall not 
include a tax unless it has substantial applica-
tion, by its terms and in practice, to— 
‘‘(i) persons who are not dual capacity 
taxpayers, and 
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‘‘(ii) persons who are citizens or resi-
dents of the foreign country or posses-
sion.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxes paid or accrued in 
taxable years beginning after the date of the enact-
ment of this Act. 
(2) 
CONTRARY
TREATY
OBLIGATIONS 
UPHELD.—The amendments made by this section 
shall not apply to the extent contrary to any treaty 
obligation of the United States. 
SEC. 202. LIMITATION ON SECTION 199 DEDUCTION ATTRIB-
UTABLE TO OIL, NATURAL GAS, OR PRIMARY 
PRODUCTS THEREOF. 
(a) DENIAL OF DEDUCTION.—Paragraph (4) of sec-
tion 199(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) SPECIAL
RULE
FOR
CERTAIN
OIL 
AND GAS INCOME.—In the case of any taxpayer 
who is a major integrated oil company (as de-
fined in section 167(h)(5)(B)) for the taxable 
year, the term ‘domestic production gross re-
ceipts’ shall not include gross receipts from the 
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production, transportation, or distribution of 
oil, natural gas, or any primary product (within 
the meaning of subsection (d)(9)) thereof.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 203. LIMITATION ON DEDUCTION FOR INTANGIBLE 
DRILLING AND DEVELOPMENT COSTS. 
(a) IN GENERAL.—Section 263(c) 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 a major integrated 
oil company (as defined in section 167(h)(5)(B)).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2011. 
SEC. 204. LIMITATION ON PERCENTAGE DEPLETION AL-
LOWANCE FOR OIL AND GAS WELLS. 
(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) APPLICATION WITH RESPECT TO MAJOR INTE-
GRATED OIL COMPANIES.—In the case of any taxable year 
in which the taxpayer is a major integrated oil company 
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(as defined in section 167(h)(5)(B)), the allowance for 
percentage depletion shall be zero.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 205. LIMITATION ON DEDUCTION FOR 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) APPLICATION WITH RESPECT TO MAJOR INTE-
GRATED OIL COMPANIES.—This section shall not apply to 
amounts paid or incurred by a taxpayer in any taxable 
year in which such taxpayer is a major integrated oil com-
pany (as defined in section 167(h)(5)(B)).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2011. 
Subtitle B—Outer Continental 
Shelf Oil and Natural Gas 
SEC. 211. REPEAL OF OUTER CONTINENTAL SHELF DEEP 
WATER AND DEEP GAS ROYALTY RELIEF. 
(a) IN GENERAL.—Sections 344 and 345 of the En-
ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 
repealed. 
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(b) ADMINISTRATION.—The Secretary of the Interior 
shall not be required to provide for royalty relief in the 
lease sale terms beginning with the first lease sale held 
on or after the date of the enactment of this Act for which 
a final notice of sale has not been published. 
Subtitle C—Miscellaneous 
SEC. 221. DEFICIT REDUCTION. 
The net amount of any savings realized as a result 
of the enactment of this Act and the amendments made 
by this Act (after any expenditures authorized by this Act 
and the amendments made by this Act) shall be deposited 
in the Treasury and used for Federal budget deficit reduc-
tion or, if there is no Federal budget deficit, for reducing 
the Federal debt in such manner as the Secretary of the 
Treasury considers appropriate. 
SEC. 222. BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the Senate Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Æ 
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