I 
112TH CONGRESS 
2D SESSION 
H. R. 5906 
To amend the Internal Revenue Code of 1986 to repeal the excise tax 
on medical devices. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 7, 2012 
Mr. POLIS (for himself, Ms. MCCOLLUM, Mr. OWENS, Mr. ROSS of Arkansas, 
Mr. CAPUANO, Mrs. DAVIS of California, Mr. SHERMAN, and Mr. KIND) 
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 repeal 
the excise tax on medical devices. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REPEAL OF MEDICAL DEVICE EXCISE TAX. 
(a) IN GENERAL.—Chapter 32 of the Internal Rev-
enue Code of 1986 is amended by striking subchapter E. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 4221 of such Code 
is amended by striking the last sentence. 
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(2) Paragraph (2) of section 6416(b) of such 
Code is amended by striking the last sentence. 
(c) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 32 of such Code is amended by strik-
ing the item relating to subchapter E. 
SEC. 2. 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 
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. 
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SEC. 3. PROHIBITION ON USING LAST-IN, FIRST-OUT AC-
COUNTING FOR MAJOR INTEGRATED OIL 
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) MAJOR INTEGRATED OIL COMPANIES.—Not-
withstanding any other provision of this section, a major 
integrated 
oil 
company 
(as 
defined 
in 
section 
167(h)(5)(B)) may not use the method provided in sub-
section (b) in inventorying of any goods.’’. 
(b) EFFECTIVE DATE AND SPECIAL RULE.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall apply to taxable years beginning 
after December 31, 2011. 
(2) CHANGE IN METHOD OF ACCOUNTING.—In 
the case of any taxpayer required by the amendment 
made by this section to change its method of ac-
counting for its first taxable year beginning after 
December 31, 2011— 
(A) such change shall be treated as initi-
ated by the taxpayer, 
(B) such change shall be treated as made 
with the consent of the Secretary of the Treas-
ury, and 
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(C) the net amount of the adjustments re-
quired to be taken into account by the taxpayer 
under section 481 of the Internal Revenue Code 
of 1986 shall be taken into account ratably over 
a period (not greater than 8 taxable years) be-
ginning with such first taxable year. 
Æ 
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