I 
112TH CONGRESS 
1ST SESSION 
H. R. 851 
To amend the Internal Revenue Code of 1986 to extend certain renewable 
fuel tax incentives and to repeal fossil fuel subsidies for large oil companies. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 1, 2011 
Mr. BRALEY of Iowa 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 extend 
certain renewable fuel tax incentives and 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. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Clean Energy Jobs Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title. 
TITLE I—RENEWABLE FUELS 
Sec. 101. Extension of biodiesel and renewable diesel incentives. 
Sec. 102. Extension of income tax credit for alcohol used as fuel. 
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Sec. 103. Extension of excise tax credit for alcohol used as fuel. 
Sec. 104. Extension of additional duties on ethanol. 
TITLE II—FOSSIL FUELS 
Sec. 201. Amortization of geological and geophysical expenditures. 
Sec. 202. Producing oil and gas from marginal wells. 
Sec. 203. Enhanced oil recovery credit. 
Sec. 204. Intangible drilling and development costs in the case of oil and gas 
wells. 
Sec. 205. Percentage depletion. 
Sec. 206. Tertiary injectants. 
Sec. 207. Passive activity losses and credits limited. 
Sec. 208. Income attributable to domestic production activities. 
TITLE III—INCREASED REVENUES TO REDUCE FEDERAL 
BUDGET DEFICIT 
Sec. 301. Increased revenues to reduce Federal budget deficit. 
TITLE I—RENEWABLE FUELS 
SEC. 101. EXTENSION OF BIODIESEL AND RENEWABLE DIE-
SEL INCENTIVES. 
(a) CREDITS FOR BIODIESEL AND RENEWABLE DIE-
SEL USED AS FUEL.—Subsection (g) of section 40A of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘December 31, 2011’’ and inserting ‘‘December 31, 
2016’’. 
(b) EXCISE TAX CREDITS AND OUTLAY PAYMENTS 
FOR BIODIESEL AND RENEWABLE DIESEL FUEL MIX-
TURES.— 
(1) Paragraph (6) of section 6426(c) of such 
Code is amended by striking ‘‘December 31, 2011’’ 
and inserting ‘‘December 31, 2016’’. 
(2) Subparagraph (B) of section 6427(e)(6) is 
amended by striking ‘‘December 31, 2011’’ and in-
serting ‘‘December 31, 2016’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2011. 
SEC. 102. EXTENSION OF INCOME TAX CREDIT FOR ALCO-
HOL USED AS FUEL. 
(a) IN GENERAL.—Paragraph (1) of section 40(e) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘December 31, 2011’’ in sub-
paragraph (A) and inserting ‘‘December 31, 2016’’, 
and 
(2) by striking ‘‘January 1, 2012’’ in subpara-
graph (B) and inserting ‘‘January 1, 2017’’. 
(b) CELLULOSIC BIOFUEL.—Subparagraph (H) of 
section 40(b)(6) of such Code is amended by striking 
‘‘January 1, 2013’’ and inserting ‘‘January 1, 2017’’. 
(c) REDUCED AMOUNT FOR ETHANOL BLENDERS.— 
Paragraphs (1) and (2) of section 40(h) of such Code are 
both amended by striking ‘‘2011’’ and inserting ‘‘2016’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 103. EXTENSION OF EXCISE TAX CREDIT FOR ALCO-
HOL USED AS FUEL. 
(a) IN GENERAL.—Paragraph (6) of section 6426(b) 
of the Internal Revenue Code of 1986 is amended by strik-
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ing ‘‘December 31, 2011’’ and inserting ‘‘December 31, 
2016’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 104. EXTENSION OF ADDITIONAL DUTIES ON ETH-
ANOL. 
Headings 9901.00.50 and 9901.00.52 of the Har-
monized Tariff Schedule of the United States are each 
amended in the effective period column by striking ‘‘1/1/ 
2012’’ and inserting ‘‘1/1/2017’’. 
TITLE II—FOSSIL FUELS 
SEC. 201. 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-
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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’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2011. 
SEC. 202. 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. 
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‘‘(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, 2011. 
SEC. 203. 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.— 
‘‘(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, 2011. 
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SEC. 204. 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, 2011. 
SEC. 205. 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-
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