able year may be carried to a taxable year end-
ing before the date of the enactment of this sec-
tion.
‘‘(B) LIMITATIONS.—The amount of the
unused credit which may be taken into account
under subparagraph (A) for any succeeding tax-
able year shall not exceed the amount by which
the limitation provided by paragraph (1) for
such taxable year exceeds the sum of—
‘‘(i) the credit allowable under sub-
section (a) for such taxable year, and
‘‘(ii) the amounts which, by reason of
this paragraph, are added to the amount
allowable for such taxable year and which
are attributable to taxable years preceding
the unused credit year.
‘‘(e) 
SPECIAL
RULES.—For 
purposes 
of 
this
section—
‘‘(1) AGGREGATION OF QUALIFIED INVESTMENT
EXPENSES.—
‘‘(A) CONTROLLED GROUPS; COMMON CON-
TROL.—In determining the amount of the cred-
it under this section, all members of the same
controlled group of corporations (within the
meaning of section 52(a)) and all persons under
common control (within the meaning of section
52(b)) shall be treated as a single taxpayer for
purposes of this section.
‘‘(B) APPORTIONMENT
OF
CREDIT.—The
credit (if any) allowable by this section to mem-
bers of any group (or to any person) described
in subparagraph (A) shall be such member’s or
person’s proportionate share of the qualified in-
vestment expenses giving rise to the credit de-
termined under regulations prescribed by the
Secretary.
‘‘(2) PARTNERSHIPS, S
CORPORATIONS, ES-
TATES AND TRUSTS.—
‘‘(A) PARTNERSHIPS
AND
S
CORPORA-
TIONS.—In the case of a partnership, the credit
shall be allocated among partners under regula-
tions prescribed by the Secretary. A similar rule
shall apply in the case of an S corporation and
its shareholders.
‘‘(B) PASS-THRU
IN
THE
CASE
OF
ES-
TATES
AND
TRUSTS.—Under regulations pre-
scribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
‘‘(3) ADJUSTMENTS
FOR
CERTAIN
ACQUISI-
TIONS AND DISPOSITIONS.—Under regulations pre-
scribed by the Secretary, rules similar to the rules
contained in section 41(f)(3) shall apply with respect
to the acquisition or disposition of a taxpayer.
‘‘(4) SHORT TAXABLE YEARS.—In the case of
any short taxable year, qualified investment expenses
shall be annualized in such circumstances and under
such methods as the Secretary may prescribe by reg-
ulation.
‘‘(5) DENIAL OF DOUBLE BENEFIT.—
‘‘(A) DISALLOWANCE
OF
DEDUCTION.—
Any deduction allowable under this chapter for
any costs taken into account in computing the
amount of the credit determined under sub-
section (a) shall be reduced by the amount of
such credit attributable to such costs.
‘‘(B) BASIS ADJUSTMENTS.—For purposes
of this subtitle, if a credit is determined under
this section for any expenditure with respect to
any property, the increase in the basis of such
property which would (but for this subsection)
result from such expenditures shall be reduced
by the amount of the credit so allowed.’’
(b) CLERICAL AMENDMENT.—The table of sections
for subpart B of part IV of subchapter A of chapter 1
is amended by adding at the end thereof the following new
item:
‘‘Sec. 30B. Crude oil and natural gas exploration and develop-
ment credit.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenses paid or incurred in
taxable years beginning after December 31, 1998.
TITLE IV—NATIONAL SECURITY
EMERGENCY PROVISIONS
SEC. 400. PURPOSE.
The purpose of this title is to recognize that a na-
tional security threat exists when foreign crude and oil
product imports exceed 60 percent of United States oil
consumption and to create an emergency procedure to ad-
dress that threat.
SEC. 401. DUTIES OF THE PRESIDENT.
(a) ESTABLISHMENT OF CEILING.—The President
shall establish a National Security Energy Independence
Ceiling (referred to in this title as the ‘‘ceiling level’’)
which shall represent a ceiling level beyond which foreign
crude and oil product imports as a share of United States
crude and oil product consumption shall not rise.
(b) LEVEL OF CEILING.—The ceiling level estab-
lished under subsection (a) shall not exceed 60 percent
of United States crude and oil product consumption for
any annual period.
(c) REPORT.—
(1) CONTENTS.—
(A) IN
GENERAL.—The President shall
prepare and submit an annual report to Con-
gress containing a national security projection
for energy independence (in this title referred to
as the ‘‘projection’’), which shall contain a fore-
cast of domestic oil and NGL demand and pro-
duction, and imports of crude and oil product
for the subsequent 3 years.
(B) REQUIRED ADJUSTMENTS.—The pro-
jection shall contain appropriate adjustments
for expected price and production changes.
(2) PRESENTATION.—The projection prepared
under paragraph (1) shall be presented to Congress
with the Budget.
(3) CERTIFICATION.—The President shall cer-
tify in the report whether foreign crude and oil prod-
uct imports will exceed the ceiling level for any year
during the 3 years succeeding the date of the report.
SEC. 402. CONGRESSIONAL REVIEW.
(a) REVIEW.—Congress shall have 10 continuous ses-
sion days after submission of each projection under section
401 to review the projection and make a determination
whether the ceiling level will be violated within 3 years.
(b) CERTIFICATION BINDING.—Unless disapproved
or modified by joint resolution, the Presidential certifi-
cation shall be binding 10 session days after submitted
to Congress.
SEC. 403. NATIONAL SECURITY AND OIL PRODUCTION AC-
TIONS.
(a) NATIONAL SECURITY
AND OIL PRODUCTION
POLICY.—
(1) SUBMISSION.—Upon certification under sec-
tion 401(c)(3) that the ceiling level will be exceeded,
the President is required within 90 days to submit
a National Security and Oil Production Policy (in
this section referred to as the ‘‘policy’’) to Congress.
The policy shall prevent crude and oil product im-
ports from exceeding the National Security Energy
Independence Ceiling.
(2) APPROVAL.—Unless disapproved or modi-
fied by joint resolution, the policy shall be effective
90 session days after submitted to Congress.
(b) CONTENTS OF POLICY.—The National Security
and Oil Production Policy may include—
(1) energy conservation actions including im-
proved fuel efficiency for automobiles;
(2) expansion of the Strategic Petroleum Re-
serves to maintain a larger cushion against projected
oil import blockages;
(3) additional production incentives for domes-
tic oil and gas including tax and other incentives for
stripper well production, offshore, frontier, and other
oil produced with tertiary recovery techniques;
(4) regulatory burden relief; and
(5) other policy initiatives designed to lower for-
eign import reliance.
Æ