‘‘(C) with respect to an estate or trust, 5 
percent or more of the beneficial interests in 
such estate or trust. 
For purposes of determining a significant ownership 
interest, an interest owned by or for a corporation, 
partnership, trust, or estate shall be considered as 
owned directly both by itself and proportionately by 
its shareholders, partners, or beneficiaries, as the 
case may be.’’. 
(2) Section 57(a)(1) of such Code is amended 
by striking the last sentence. 
(3) Section 291(b)(4) of such Code is amended 
by adding at the end the following: ‘‘Any reference 
in the preceding sentence to section 613A shall be 
treated as a reference to such section as in effect 
prior to the date of the enactment of the People 
Over Petroleum Act.’’. 
(4) Section 613(d) of such Code is amended by 
striking ‘‘Except as provided in section 613A, in the 
case of’’ and inserting ‘‘In the case of’’. 
(5) Section 613(e) of such Code is amended— 
(A) by striking ‘‘or section 613A’’ in para-
graph (2), and 
(B) by striking ‘‘any amount described in 
section 613A(d)(5)’’ in paragraph (3) and in-
VerDate Sep 11 2014 
01:51 Jun 21, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1743.IH
H1743
pbinns on DSKJLVW7X2PROD with $$_JOB
serting ‘‘any lease bonus, advance royalty, or 
other amount payable without regard to produc-
tion from property’’. 
(6) Section 705(a) of such Code is amended— 
(A) by inserting ‘‘and’’ at the end of para-
graph (1)(C), 
(B) by striking ‘‘; and’’ at the end of para-
graph (2)(B) and inserting a period, and 
(C) by striking paragraph (3). 
(7) Section 993(c)(2)(C) of such Code is 
amended by striking ‘‘section 613 or 613A’’ and in-
serting ‘‘section 613 (determined without regard to 
subsection (d) thereof)’’. 
(8) Section 1202(e)(3)(D) of such Code is 
amended by striking ‘‘section 613 or 613A’’ and in-
serting ‘‘section 613 (determined without regard to 
subsection (d) thereof)’’. 
(9) Section 1367(a)(2) of such Code is amended 
by inserting ‘‘and’’ at the end of subparagraph (C), 
by striking ‘‘, and’’ at the end of subparagraph (D) 
and inserting a period, and by striking subparagraph 
(E). 
(10) Section 1446(c) of such Code is amended 
by striking paragraph (2) and by redesignating 
paragraph (3) as paragraph (2). 
VerDate Sep 11 2014 
01:51 Jun 21, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H1743.IH
H1743
pbinns on DSKJLVW7X2PROD with $$_JOB
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2022. 
SEC. 
7. 
REPEAL 
OF 
DEDUCTION 
FOR 
TERTIARY 
INJECTANTS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by striking section 193 (and the table of sections of such 
subpart is amended by striking the item relating to such 
section). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
SEC. 8. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITA-
TIONS FOR WORKING INTERESTS IN OIL AND 
GAS PROPERTIES. 
(a) IN GENERAL.—Section 469(c)(3) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(C) TERMINATION.—Subparagraph (A) 
shall not apply with respect to any taxable year 
beginning after the date of the enactment of 
this Act.’’. 
VerDate Sep 11 2014 
01:51 Jun 21, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H1743.IH
H1743
pbinns on DSKJLVW7X2PROD with $$_JOB
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
SEC. 9. DEDUCTION FOR QUALIFIED BUSINESS INCOME 
NOT ALLOWED WITH RESPECT TO OIL AND 
GAS ACTIVITIES. 
(a) IN GENERAL.—Section 199A(c)(3)(B) of the In-
ternal Revenue Code of 1986 is amended by redesignating 
clause (vii) as clause (viii), and by inserting after clause 
(vi) the following new clause: 
‘‘(vii) The production, refining, proc-
essing, transportation, or distribution of 
oil, gas, or any primary product thereof.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
SEC. 10. PROHIBITION ON USING LAST-IN, FIRST-OUT AC-
COUNTING FOR OIL AND GAS COMPANIES. 
(a) IN GENERAL.—Section 472 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(h) OIL AND GAS COMPANIES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, a major integrated oil com-
VerDate Sep 11 2014 
01:51 Jun 21, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1743.IH
H1743
pbinns on DSKJLVW7X2PROD with $$_JOB
pany may not use the method provided in subsection 
(b) in inventorying of any goods. 
‘‘(2) MAJOR INTEGRATED OIL COMPANY.—For 
purposes of this subsection, the term ‘major inte-
grated oil company’ means, with respect to any tax-
able year, a producer of crude oil— 
‘‘(A) which has an average daily worldwide 
production of crude oil of at least 500,000 bar-
rels for the taxable year, 
‘‘(B) which has gross receipts in excess of 
$1,000,000,000 for the taxable year, and 
‘‘(C) the average daily refinery runs of the 
taxpayer and related persons for the taxable 
year exceed 75,000 barrels. 
‘‘(3) SPECIAL RULES.— 
‘‘(A) CRUDE PRODUCTION AND GROSS RE-
CEIPTS.—For purposes of subparagraphs (A) 
and (B) of paragraph (2)— 
‘‘(i) CONTROLLED GROUPS AND COM-
MON CONTROL.—All persons treated as a 
single employer under subsections (a) and 
(b) of section 52 shall be treated as 1 per-
son. 
VerDate Sep 11 2014 
01:51 Jun 21, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1743.IH
H1743
pbinns on DSKJLVW7X2PROD with $$_JOB
‘‘(ii) SHORT
TAXABLE
YEARS.—In 
case of a short taxable year, the rule under 
section 448(c)(3)(B) shall apply. 
‘‘(B) AVERAGE DAILY REFINERY RUNS.— 
For purposes of paragraph (2)(C)— 
‘‘(i) IN GENERAL.—The average daily 
refinery runs for any taxable year shall be 
determined by dividing the aggregate refin-
ery runs for the taxable year by the num-
ber of days in the taxable year. 
‘‘(ii) RELATED
PERSONS.—A person 
is a related person with respect to the tax-
payer if a significant ownership interest in 
either the taxpayer or such person is held 
by the other, or if a third person has a sig-
nificant ownership interest in both the tax-
payer and such person. 
‘‘(iii) SIGNIFICANT
OWNERSHIP
IN-
TEREST.—For purposes of clause (ii), the 
term 
‘significant 
ownership 
interest’ 
means— 
‘‘(I) with respect to any corpora-
tion, 15 percent or more in value of 
the outstanding stock of such corpora-
tion, 
VerDate Sep 11 2014 
01:51 Jun 21, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1743.IH
H1743
pbinns on DSKJLVW7X2PROD with $$_JOB