I 
117TH CONGRESS 
1ST SESSION H. R. 2102 
To eliminate certain subsidies for fossil-fuel production. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2021 
Ms. OMAR introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committees on Natural Re-
sources, Transportation and Infrastructure, Financial Services, Science, 
Space, and Technology, Agriculture, and Energy and Commerce, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To eliminate certain subsidies for fossil-fuel production. 
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 Polluter Welfare 
Act of 2021’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. Definition of fossil fuel. 
Sec. 4. Royalty relief. 
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Sec. 5. Royalties under Mineral Leasing Act. 
Sec. 6. Elimination of interest payments for royalty overpayments. 
Sec. 7. Removal of limits on liability for offshore facilities and pipeline opera-
tors. 
Sec. 8. Restrictions on use of appropriated funds by international financial in-
stitutions for projects that support fossil fuel. 
Sec. 9. Fossil Energy Research and Development Program. 
Sec. 10. Advanced Research Projects Agency—Energy. 
Sec. 11. Incentives for innovative technologies. 
Sec. 12. Rural Utility Service loan guarantees. 
Sec. 13. Prohibition on use of funds by the United States International Devel-
opment Finance Corporation or the Export-Import Bank of the 
United States for financing projects, transactions, or other ac-
tivities that support fossil fuel. 
Sec. 14. Transportation funds for grants, loans, loan guarantees, and other di-
rect assistance. 
Sec. 15. Elimination of exclusion of certain lenders as owners or operators 
under CERCLA. 
Sec. 16. Termination of various tax expenditures relating to fossil fuels. 
Sec. 17. Termination of certain deductions and credits related to fossil fuels. 
Sec. 18. Uniform seven-year amortization for geological and geophysical ex-
penditures. 
Sec. 19. Natural gas gathering lines treated as 15-year property. 
Sec. 20. Termination of last-in, first-out method of inventory for oil, natural 
gas, and coal companies. 
Sec. 21. Repeal of percentage depletion for coal and hard mineral fossil fuels. 
Sec. 22. Termination of capital gains treatment for royalties from coal. 
Sec. 23. Modifications of foreign tax credit rules applicable to oil and gas in-
dustry taxpayers receiving specific economic benefits. 
Sec. 24. Increase in oil spill liability trust fund financing rate. 
Sec. 25. Application of certain environmental taxes to synthetic crude oil. 
Sec. 26. Denial of deduction for removal costs and damages for certain oil 
spills. 
Sec. 27. Tax on crude oil and natural gas produced from the outer Continental 
Shelf in the Gulf of Mexico. 
Sec. 28. Repeal of corporate income tax exemption for publicly traded partner-
ships with qualifying income and gains from activities relating 
to fossil fuels. 
Sec. 29. Amortization of qualified tertiary injectant expenses. 
Sec. 30. Amortization of development expenditures. 
Sec. 31. Amortization of certain mining exploration expenditures. 
Sec. 32. Amortization of intangible drilling and development costs in the case 
of oil and gas wells and geothermal wells. 
Sec. 33. Permanent excise tax rate for funding of Black Lung Disability Trust 
Fund. 
Sec. 34. Termination of renewable electricity production credit eligibility for re-
fined coal. 
Sec. 35. Treatment of foreign oil related income as subpart F income. 
Sec. 36. Repeal of exclusion of foreign oil and gas extraction income from the 
determination of tested income. 
Sec. 37. Termination of credit for carbon oxide sequestration. 
Sec. 38. Powder River Basin. 
Sec. 39. Study and elimination of additional fossil fuel subsidies. 
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SEC. 3. DEFINITION OF FOSSIL FUEL. 
In this Act, the term ‘‘fossil fuel’’ means coal, petro-
leum, natural gas, or any derivative of coal, petroleum, 
or natural gas that is used for fuel. 
SEC. 4. ROYALTY RELIEF. 
(a) IN GENERAL.— 
(1) OUTER CONTINENTAL SHELF LANDS ACT.— 
Section 8(a)(3) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(3)) is amended— 
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B). 
(2) ENERGY POLICY ACT OF 2005.— 
(A) INCENTIVES FOR NATURAL GAS PRO-
DUCTION FROM DEEP WELLS IN THE SHALLOW 
WATERS
OF
THE
GULF
OF
MEXICO.—Section 
344 of the Energy Policy Act of 2005 (42 
U.S.C. 15904) is repealed. 
(B) DEEP WATER PRODUCTION.—Section 
345 of the Energy Policy Act of 2005 (42 
U.S.C. 15905) is repealed. 
(b) FUTURE
PROVISIONS.—Notwithstanding any 
other provision of law, royalty relief shall not be permitted 
under a lease issued under section 8 of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1337). 
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SEC. 5. ROYALTIES UNDER MINERAL LEASING ACT. 
(a) COAL LEASES.—Section 7(a) of the Mineral 
Leasing Act (30 U.S.C. 207(a)) is amended in the fourth 
sentence by striking ‘‘121⁄2 per centum’’ and inserting 
‘‘183⁄4 percent’’. 
(b) LEASES ON LAND ON WHICH OIL OR NATURAL 
GAS IS DISCOVERED.—Section 14 of the Mineral Leasing 
Act (30 U.S.C. 223) is amended in the fourth sentence 
by striking ‘‘121⁄2 per centum’’ and inserting ‘‘183⁄4 per-
cent’’. 
(c) LEASES ON LAND KNOWN OR BELIEVED TO 
CONTAIN OIL OR NATURAL GAS.—Section 17 of the Min-
eral Leasing Act (30 U.S.C. 226) is amended— 
(1) in subsection (b)— 
(A) in paragraph (1)(A), in the fifth sen-
tence, by striking ‘‘12.5 percent’’ and inserting 
‘‘183⁄4 percent’’; and 
(B) in paragraph (2)(A)(ii), by striking 
‘‘121⁄2 per centum’’ and inserting ‘‘183⁄4 per-
cent’’; 
(2) in subsection (c)(1), in the second sentence, 
by striking ‘‘12.5 percent’’ and inserting ‘‘183⁄4 per-
cent’’; 
(3) in subsection (l), by striking ‘‘121⁄2 per cen-
tum’’ each place it appears and inserting ‘‘183⁄4 per-
cent’’; and 
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(4) in subsection (n)(1)(C), by striking ‘‘121⁄2 
per centum’’ and inserting ‘‘183⁄4 percent’’. 
SEC. 6. ELIMINATION OF INTEREST PAYMENTS FOR ROY-
ALTY OVERPAYMENTS. 
Section 111 of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1721) is amended by 
adding at the end the following: 
‘‘(k) PAYMENT OF INTEREST.—Interest shall not be 
paid on any overpayment.’’. 
SEC. 7. REMOVAL OF LIMITS ON LIABILITY FOR OFFSHORE 
FACILITIES AND PIPELINE OPERATORS. 
Section 1004(a) of the Oil Pollution Act of 1990 (33 
U.S.C. 2704(a)) is amended— 
(1) in paragraph (3), by striking ‘‘plus 
$75,000,000; and’’ and inserting ‘‘and the liability 
of the responsible party under section 1002;’’; 
(2) in paragraph (4)— 
(A) by inserting ‘‘(except an onshore pipe-
line transporting diluted bitumen, bituminous 
mixtures, or any oil manufactured from bitu-
men)’’ after ‘‘for any onshore facility’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
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‘‘(5) for any onshore facility transporting di-
luted bitumen, bituminous mixtures, or any oil man-
ufactured from bitumen, the liability of the respon-
sible party under section 1002.’’. 
SEC. 8. RESTRICTIONS ON USE OF APPROPRIATED FUNDS 
BY 
INTERNATIONAL 
FINANCIAL 
INSTITU-
TIONS FOR PROJECTS THAT SUPPORT FOS-
SIL FUEL. 
(a) RESCISSION OF UNOBLIGATED FUNDS.— 
(1) IN GENERAL.—Of the unobligated balance 
of amounts appropriated or otherwise made available 
for a contribution of the United States to an inter-
national financial institution, an amount specified in 
paragraph (2) shall be rescinded if the institution 
provides support for a project that supports the pro-
duction or use of fossil fuels. 
(2) AMOUNT SPECIFIED.—The amount specified 
in this paragraph is an amount the Secretary of the 
Treasury determines to be equivalent to the amount 
of support provided by an international financial in-
stitution described in paragraph (1) for a project 
that supports the production or use of fossil fuels. 
(b) PROHIBITION ON USE OF FUTURE FUNDS.—No 
amounts appropriated or otherwise made available for a 
contribution of the United States to an international fi-
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nancial institution may be provided to the institution un-
less the institution agrees to not use the amount to provide 
support for any project that supports the production or 
use of fossil fuels. 
(c) INTERNATIONAL FINANCIAL INSTITUTION DE-
FINED.—In this section, the term ‘‘international financial 
institution’’ has the meaning given that term in section 
1701(c) of the International Financial Institutions Act 
(22 U.S.C. 262r(c)). 
SEC. 9. FOSSIL ENERGY RESEARCH AND DEVELOPMENT 
PROGRAM. 
(a) TERMINATION OF AUTHORITY.—Notwithstanding 
any other provision of law, the authority of the Secretary 
of Energy to carry out the Fossil Energy Research and 
Development Program of the Department of Energy is 
terminated. 
(b) RESCISSION.—Notwithstanding any other provi-
sion of law— 
(1) all amounts made available for the Fossil 
Energy Research and Development Program that re-
main unobligated as of the date of enactment of this 
Act are rescinded; and 
(2) no amounts made available after the date of 
enactment of this Act for the Fossil Energy Re-
search and Development Program shall be expended, 
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other than such amounts as are necessary to cover 
costs incurred in terminating ongoing research of 
the Fossil Energy Research and Development Pro-
gram, as determined by the Secretary of Energy, in 
consultation with other appropriate Federal agen-
cies. 
SEC. 10. ADVANCED RESEARCH PROJECTS AGENCY—EN-
ERGY. 
None of the funds made available to the Advanced 
Research Projects Agency—Energy shall be used to carry 
out any project that supports fossil fuel. 
SEC. 11. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 
(a) IN GENERAL.—Section 1703 of the Energy Policy 
Act of 2005 (42 U.S.C. 16513) is amended— 
(1) in subsection (b)— 
(A) by striking paragraphs (2) and (10); 
and 
(B) by redesignating paragraphs (3), (4), 
(5), (6), (7), (8), (9), (11), and (12) as para-
graphs (2), (3), (4), (5), (6), (7), (8), (9), and 
(10), respectively; 
(2) by striking subsection (c); and 
(3) by redesignating subsections (d) through (f) 
as subsections (c) through (e), respectively. 
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(b) CONFORMING AMENDMENT.—Section 1704 of the 
Energy Policy Act of 2005 (42 U.S.C. 16514) is amend-
ed— 
(1) by striking subsection (b); and 
(2) by redesignating subsection (c) as sub-
section (b). 
SEC. 12. RURAL UTILITY SERVICE LOAN GUARANTEES. 
Notwithstanding any other provision of law, the Sec-
retary of Agriculture may not make a loan under title III 
of the Rural Electrification Act of 1936 (7 U.S.C. 931 
et seq.) to an applicant for the purpose of carrying out 
any project that will use fossil fuel. 
SEC. 13. PROHIBITION ON USE OF FUNDS BY THE UNITED 
STATES INTERNATIONAL DEVELOPMENT FI-
NANCE CORPORATION OR THE EXPORT-IM-
PORT BANK OF THE UNITED STATES FOR FI-
NANCING 
PROJECTS, 
TRANSACTIONS, 
OR 
OTHER ACTIVITIES THAT SUPPORT FOSSIL 
FUEL. 
Notwithstanding any other provision of law, no 
amounts appropriated or otherwise made available for the 
United States International Development Finance Cor-
poration or the Export-Import Bank of the United States 
that are available for obligation on or after the date of 
the enactment of this Act may be obligated or expended 
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to support any project, transaction, or other activity that 
supports the production or use of fossil fuels. 
SEC. 14. TRANSPORTATION FUNDS FOR GRANTS, LOANS, 
LOAN GUARANTEES, AND OTHER DIRECT AS-
SISTANCE. 
Notwithstanding any other provision of law, any 
amounts made available to the Department of Transpor-
tation (including the Federal Railroad Administration) 
may not be used to award any grant, loan, loan guarantee, 
or provide any other direct assistance to any rail facility 
or port project that transports fossil fuel. 
SEC. 15. ELIMINATION OF EXCLUSION OF CERTAIN LEND-
ERS AS OWNERS OR OPERATORS UNDER 
CERCLA. 
Section 101(20)(F) of the Comprehensive Environ-
mental Response, Compensation, and Liability Act of 
1980 (42 U.S.C. 9601(20)(F)) is amended by adding at 
the end the following: 
‘‘(iii) INELIGIBLE LENDERS.—The ex-
clusions under clauses (i) and (ii) shall not 
apply to a person that is a lender that is— 
‘‘(I) an investment company reg-
istered under the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–1 et 
seq.), investment adviser (as defined 
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in section 202(a) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b– 
2(a))), or broker or dealer (as those 
terms are defined in section 3(a) of 
the Securities Exchange Act of 1934 
(15 
U.S.C. 
78c(a))) 
with 
$250,000,000,000 or more in assets 
under management; or 
‘‘(II) a bank holding company (as 
defined in section 2 of the Bank Hold-
ing Company Act of 1956 (12 U.S.C. 
1841)) with $10,000,000,000 or more 
in total consolidated assets.’’. 
SEC. 16. TERMINATION OF VARIOUS TAX EXPENDITURES 
RELATING TO FOSSIL FUELS. 
(a) IN GENERAL.—Subchapter C of chapter 80 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELAT-
ING TO FOSSIL-FUEL INCENTIVES. 
‘‘(a) IN GENERAL.—The following provisions shall 
not apply to taxable years beginning after the date of the 
enactment of the End Polluter Welfare Act of 2021: 
‘‘(1) Section 43 (relating to enhanced oil recov-
ery credit). 
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‘‘(2) Section 45I (relating to credit for pro-
ducing oil and natural gas from marginal wells). 
‘‘(3) Section 461(i)(2) (relating to special rule 
for spudding of oil or natural gas wells). 
‘‘(4) Section 469(c)(3)(A) (relating to working 
interests in oil and natural gas property). 
‘‘(5) Section 613A (relating to limitations on 
percentage depletion in case of oil and natural gas 
wells). 
‘‘(b) PROVISIONS RELATING
TO PROPERTY.—The 
following provisions shall not apply to property placed in 
service after the date of the enactment of the End Polluter 
Welfare Act of 2021: 
‘‘(1) Section 168(e)(3)(C)(iii) (relating to clas-
sification of certain property). 
‘‘(2) Section 169 (relating to amortization of 
pollution control facilities) with respect to any at-
mospheric pollution control facility. 
‘‘(c) PROVISIONS RELATING
TO COSTS
AND EX-
PENSES.—The following provisions shall not apply to costs 
or expenses paid or incurred after the date of the enact-
ment of the End Polluter Welfare Act of 2021: 
‘‘(1) Section 179B (relating to deduction for 
capital costs incurred in complying with Environ-
mental Protection Agency sulfur regulations). 
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‘‘(2) Section 468 (relating to special rules for 
mining and solid waste reclamation and closing 
costs). 
‘‘(d) ALLOCATED CREDITS.—No new credits shall be 
certified under section 48A (relating to qualifying ad-
vanced coal project credit) or section 48B (relating to 
qualifying gasification project credit) after the date of the 
enactment of the End Polluter Welfare Act of 2021. 
‘‘(e) ARBITRAGE BONDS.—Section 148(b)(4) (relat-
ing to safe harbor for prepaid natural gas) shall not apply 
to obligations issued after the date of the enactment of 
the End Polluter Welfare Act of 2021.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 613(d) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘Except as 
provided in section 613A, in the case’’ and inserting 
‘‘In the case’’. 
(2) The table of sections for subchapter C of 
chapter 90 of such Code is amended by adding at 
the end the following new item: 
‘‘Sec. 7875. Termination of certain provisions relating to fossil-fuel incentives.’’. 
SEC. 17. TERMINATION OF CERTAIN DEDUCTIONS AND 
CREDITS RELATED TO FOSSIL FUELS. 
(a) SPECIAL
ALLOWANCE
FOR
CERTAIN
PROP-
ERTY.—Section 168(k) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: 
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‘‘(11) FOSSIL FUEL PROPERTY.— 
‘‘(A) IN GENERAL.—This subsection shall 
not apply with respect to any property which is 
primarily used for fossil fuel activities and is 
placed in service during any taxable year begin-
ning after the date of the enactment of the End 
Polluter Welfare Act of 2021. 
‘‘(B) FOSSIL FUEL ACTIVITIES.—For pur-
poses of this paragraph, the term ‘fossil fuel ac-
tivities’ means the exploration, development, 
mining or production, processing, refining, 
transportation (including pipelines transporting 
gas, oil, or products thereof), distribution, or 
marketing of coal, petroleum, natural gas, or 
any derivative of coal, petroleum, or natural gas 
that is used for fuel. 
‘‘(C) EXCEPTION.—The property described 
in subparagraph (A) shall not include any 
motor vehicle service station or convenience 
store which does not qualify as a retail motor 
fuels outlet under subsection (e)(3)(E)(iii).’’. 
(b) 
QUALIFIED
BUSINESS
INCOME.—Section 
199A(c)(3)(B) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
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‘‘(viii) Any item of gain or loss de-
rived from fossil fuel activities (as defined 
in section 168(k)(11)(B)) during any tax-
able year beginning after the date of the 
enactment of the End Polluter Welfare Act 
of 2021.’’. 
(c) CREDIT
FOR INCREASING RESEARCH ACTIVI-
TIES.—Section 41(d)(4) of the Internal Revenue Code of 
1986 is amended by adding at the end the following: 
‘‘(I) FOSSIL
FUEL
ACTIVITIES.—Any re-
search related to fossil fuel activities (as defined 
in section 168(k)(11)(B)) which is conducted 
after the date of the enactment of the End Pol-
luter Welfare Act of 2021.’’. 
(d) FOREIGN-DERIVED INTANGIBLE INCOME.—Sub-
clause (V) of section 250(b)(3)(A)(i) of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘(V) any income derived from 
fossil fuel activities (as defined in sec-
tion 168(k)(11)(B)) during any tax-
able year beginning after the date of 
the enactment of the End Polluter 
Welfare Act of 2021, and’’. 
(e) EXCHANGE OF REAL PROPERTY HELD FOR PRO-
DUCTIVE USE OR INVESTMENT.—Section 1031(a)(2) of 
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the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(2) EXCEPTIONS.—This subsection shall not 
apply to— 
‘‘(A) any exchange of real property held 
primarily for sale, or 
‘‘(B) any exchange of real property 
which— 
‘‘(i) is used for fossil fuel activities (as 
defined in section 168(k)(11)(B)), and 
‘‘(ii) occurs after the date of the en-
actment of the End Polluter Welfare Act 
of 2021.’’. 
SEC. 18. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEO-
LOGICAL AND GEOPHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Section 167(h) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘24-month period’’ each place it 
appears in paragraphs (1) and (4) and inserting 
‘‘84-month period’’; 
(2) by striking paragraph (2) and inserting the 
following: 
‘‘(2) MID-MONTH CONVENTION.—For purposes 
of paragraph (1), any payment paid or incurred dur-
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ing any month shall be treated as paid or incurred 
on the mid-point of such month.’’; and 
(3) by striking paragraph (5). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
SEC. 19. NATURAL GAS GATHERING LINES TREATED AS 15- 
YEAR PROPERTY. 
(a) IN GENERAL.—Section 168(e)(3)(E) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and’’ 
at the end of clause (vi), by striking the period at the end 
of clause (vii) and inserting ‘‘, and’’, and by adding at 
the end the following new clause: 
‘‘(viii) any natural gas gathering line 
the original use of which commences with 
the taxpayer after the date of the enact-
ment of this clause.’’. 
(b) ALTERNATIVE SYSTEM.—The table contained in 
section 168(g)(3)(B) of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to 
subparagraph (E)(vii) the following new item: 
‘‘(E)(viii)
.................................................................................................
22’’. 
(c) CONFORMING AMENDMENT.—Clause (iv) of sec-
tion 168(e)(3)(C) of the Internal Revenue Code of 1986 
is amended by inserting ‘‘and on or before the date of the 
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enactment of the End Polluter Welfare Act of 2021’’ after 
‘‘April 11, 2005’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to property placed in service 
on and after the date of the enactment of this Act. 
(2) EXCEPTION.—The amendments made by 
this section shall not apply to any property with re-
spect to which the taxpayer or a related party has 
entered into a binding contract for the construction 
thereof on or before the date of the introduction of 
this Act, or, in the case of self-constructed property, 
has started construction on or before such date. 
SEC. 20. TERMINATION OF LAST-IN, FIRST-OUT METHOD OF 
INVENTORY FOR OIL, NATURAL GAS, AND 
COAL 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) TERMINATION FOR OIL, NATURAL GAS, AND 
COAL COMPANIES.—Subsection (a) shall not apply to any 
taxpayer that is in the trade or business of the production, 
refining, processing, transportation, or distribution of oil, 
natural gas, or coal for any taxable year beginning after 
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the date of enactment of the End Polluter Welfare Act 
of 2021.’’. 
(b) ADDITIONAL TERMINATION.—Section 473 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(h) TERMINATION FOR OIL, NATURAL GAS, AND 
COAL COMPANIES.—This section shall not apply to any 
taxpayer that is in the trade or business of the production, 
refining, processing, transportation, or distribution of oil, 
natural gas, or coal for any taxable year beginning after 
the date of enactment of the End Polluter Welfare Act 
of 2021.’’. 
(c) CHANGE IN METHOD OF ACCOUNTING.—In the 
case of any taxpayer required by the amendments made 
by this section to change its method of accounting for its 
first taxable year beginning after the date of enactment 
of this Act— 
(1) such change shall be treated as initiated by 
the taxpayer; and 
(2) such change shall be treated as made with 
the consent of the Secretary of the Treasury. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of enactment of this Act. 
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SEC. 21. REPEAL OF PERCENTAGE DEPLETION FOR COAL 
AND HARD MINERAL FOSSIL FUELS. 
(a) IN GENERAL.—Section 613 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(f) TERMINATION WITH RESPECT TO COAL AND 
HARD MINERAL FOSSIL FUELS.—In the case of coal, lig-
nite, and oil shale (other than oil shale described in sub-
section (b)(5)), the allowance for depletion shall be com-
puted without reference to this section for any taxable 
year beginning after the date of the enactment of the End 
Polluter Welfare Act of 2021.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) COAL AND LIGNITE.—Section 613(b)(4) of 
the Internal Revenue Code of 1986 is amended by 
striking ‘‘coal, lignite,’’. 
(2) OIL
SHALE.—Section 613(b)(2) of such 
Code is amended to read as follows: 
‘‘(2) 15 PERCENT.—If, from deposits in the 
United States, gold, silver, copper, and iron ore.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 22. TERMINATION OF CAPITAL GAINS TREATMENT 
FOR ROYALTIES FROM COAL. 
(a) IN GENERAL.—Subsection (c) of section 631 of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘coal (including lignite), or iron 
ore’’ and inserting ‘‘iron ore’’; 
(2) by striking ‘‘coal or iron ore’’ each place it 
appears and inserting ‘‘iron ore’’; 
(3) by striking ‘‘iron ore or coal’’ each place it 
appears and inserting ‘‘iron ore’’; and 
(4) by striking ‘‘COAL OR’’ in the heading. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading of section 631 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘, 
COAL,’’. 
(2) Section 1231(b)(2) of such Code is amend-
ed by striking ‘‘, coal,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to dispositions after the date of 
the enactment of this Act. 
SEC. 23. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
APPLICABLE TO OIL AND GAS INDUSTRY TAX-
PAYERS 
RECEIVING 
SPECIFIC 
ECONOMIC 
BENEFITS. 
(a) IN GENERAL.—Section 901 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
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(n) as subsection (o) and by inserting after subsection (m) 
the following new subsection: 
‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY 
TAXPAYERS.— 
‘‘(1) GENERAL
RULE.—Notwithstanding any 
other provision of this chapter, any amount paid or 
accrued to a foreign country or possession of the 
United States for any period by a dual capacity tax-
payer which is in the trade or business of the pro-
duction, refining, processing, transportation, or dis-
tribution of fossil fuel shall not be considered 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 no amount other 
than the amount required to be paid by 
such taxpayer under the generally applica-
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for purposes of section 1254, be treated as a deduc-
tion allowable under section 263(c).’’. 
(4) Section 170(e) of such Code is amended— 
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘617(d)(1),’’; and 
(B) in paragraph (3)(D), by striking 
‘‘617,’’. 
(5) Section 263A(c)(3) of such Code, as amend-
ed by section 30(b)(5), is amended by striking 
‘‘291(b)(2), or 617’’ and inserting ‘‘or 291(b)(2)’’. 
(6) Section 291(b) of such Code, as amended by 
section 30(b)(6), is amended— 
(A) in the heading, by striking ‘‘AND MIN-
ERAL
EXPLORATION
AND
DEVELOPMENT 
COSTS’’; 
(B) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) IN
GENERAL.—In the case of an inte-
grated oil company, the amount allowable as a de-
duction for any taxable year (determined without re-
gard to this section) under section 263(c) shall be 
reduced by 30 percent.’’; 
(C) in paragraph (2), by striking ‘‘or 
617(a) (as the case may be)’’; and 
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