ble income tax imposed by the country or 
possession were paid or accrued by such 
dual capacity taxpayer. 
Nothing in this paragraph shall be construed to 
imply the proper treatment of any such amount 
not in excess of the amount determined under 
subparagraph (B). 
‘‘(2) DUAL
CAPACITY
TAXPAYER.—For pur-
poses of this subsection, the term ‘dual capacity tax-
payer’ means, with respect to any foreign country or 
possession of the United States, a person who— 
‘‘(A) is subject to a levy of such country or 
possession, and 
‘‘(B) receives (or will receive) directly or 
indirectly a specific economic benefit (as deter-
mined in accordance with regulations) from 
such country or possession. 
‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘generally 
applicable income tax’ means an income tax (or 
a series of income taxes) which is generally im-
posed under the laws of a foreign country or 
possession on income derived from the conduct 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
of a trade or business within such country or 
possession. 
‘‘(B) EXCEPTIONS.—Such term shall not 
include a tax unless it has substantial applica-
tion, by its terms and in practice, to— 
‘‘(i) persons who are not dual capacity 
taxpayers, and 
‘‘(ii) persons who are— 
‘‘(I) citizens or residents of the 
foreign country or possession, or 
‘‘(II) organized or incorporated 
under the laws of the foreign country 
or possession. 
‘‘(4) FOSSIL FUEL.—For purposes of this sub-
section, the term ‘fossil fuel’ means coal, petroleum, 
natural gas, or any derivative of coal, petroleum, or 
natural gas that is used for fuel.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxes paid or accrued in taxable 
years beginning after the date of the enactment of this 
Act. 
(c) 
SPECIAL
RULE
FOR
TREATIES.—Notwith-
standing sections 894 or 7852(d) of the Internal Revenue 
Code of 1986, the amendments made by this section shall 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
apply without regard to any treaty obligation of the 
United States. 
SEC. 24. INCREASE IN OIL SPILL LIABILITY TRUST FUND FI-
NANCING RATE. 
(a) IN GENERAL.—Section 4611 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (c)(2)(B)— 
(A) in clause (i), by striking ‘‘and’’ at the 
end; 
(B) in clause (ii), by striking the period at 
the end and inserting ‘‘, and’’; and 
(C) by adding at the end the following: 
‘‘(iii) in the case of crude oil received 
or petroleum products entered after De-
cember 31, 2021, 10 cents a barrel.’’; and 
(2) by striking subsection (f) and inserting the 
following: 
‘‘(f) APPLICATION OF OIL SPILL LIABILITY TRUST 
FUND FINANCING RATE.—The Oil Spill Liability Trust 
Fund financing rate under subsection (c) shall apply on 
and after April 1, 2006, or if later, the date which is 30 
days after the last day of any calendar quarter for which 
the Secretary estimates that, as of the close of that quar-
ter, the unobligated balance in the Oil Spill Liability Trust 
Fund is less than $2,000,000,000.’’. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to crude oil received and petroleum 
products entered after December 31, 2021. 
SEC. 25. APPLICATION OF CERTAIN ENVIRONMENTAL 
TAXES TO SYNTHETIC CRUDE OIL. 
(a) IN GENERAL.—Paragraph (1) of section 4612(a) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) CRUDE OIL.— 
‘‘(A) IN GENERAL.—The term ‘crude oil’ 
includes crude oil condensates, natural gasoline, 
and synthetic crude oil. 
‘‘(B) SYNTHETIC
CRUDE
OIL.—For pur-
poses of subparagraph (A), the term ‘synthetic 
crude oil’ means— 
‘‘(i) any bitumen and bituminous mix-
tures, 
‘‘(ii) any oil derived from bitumen and 
bituminous mixtures (including oil derived 
from tar sands), 
‘‘(iii) any liquid fuel derived from 
coal, and 
‘‘(iv) any oil derived from kerogen- 
bearing sources (including oil derived from 
oil shale).’’. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(b) REGULATORY AUTHORITY TO ADDRESS OTHER 
TYPES OF CRUDE OIL AND PETROLEUM PRODUCTS.— 
Subsection (a) of section 4612 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing: 
‘‘(10) REGULATORY
AUTHORITY
TO
ADDRESS 
OTHER
TYPES
OF
CRUDE
OIL
AND
PETROLEUM 
PRODUCTS.—Under such regulations as the Sec-
retary may prescribe, the Secretary may include as 
crude oil or as a petroleum product subject to tax 
under section 4611, any fuel feedstock or finished 
fuel product customarily transported by pipeline, 
vessel, railcar, or tanker truck if the Secretary deter-
mines that— 
‘‘(A) the classification of such fuel feed-
stock or finished fuel product is consistent with 
the definition of oil under the Oil Pollution Act 
of 1990, and 
‘‘(B) such fuel feedstock or finished fuel 
product is produced in sufficient commercial 
quantities as to pose a significant risk of haz-
ard in the event of a discharge.’’. 
(c) TECHNICAL AMENDMENT.—Paragraph (2) of sec-
tion 4612(a) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘from a well located’’. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to oil and petroleum products re-
ceived or entered during calendar quarters beginning more 
than 60 days after the date of the enactment of this Act. 
SEC. 26. DENIAL OF DEDUCTION FOR REMOVAL COSTS AND 
DAMAGES FOR CERTAIN OIL SPILLS. 
(a) IN GENERAL.—Section 162(f) of the Internal 
Revenue Code of 1986 is amended— 
(1) by redesignating paragraph (5) as para-
graph (6); and 
(2) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) EXPENSES
FOR
REMOVAL
COSTS
AND 
DAMAGES RELATING TO CERTAIN OIL SPILL LIABIL-
ITY.—Notwithstanding paragraphs (2) and (3), no 
deduction shall be allowed under this chapter for any 
costs or damages for which the taxpayer is liable 
under section 1002 of the Oil Pollution Act of 1990 
(33 U.S.C. 2702)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to any liability arising 
in taxable years ending after the date of the enactment 
of this Act. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
SEC. 27. TAX ON CRUDE OIL AND NATURAL GAS PRODUCED 
FROM THE OUTER CONTINENTAL SHELF IN 
THE GULF OF MEXICO. 
(a) IN GENERAL.—Subtitle E of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new chapter: 
‘‘CHAPTER 56—TAX ON SEVERANCE OF 
CRUDE OIL AND NATURAL GAS FROM 
THE OUTER CONTINENTAL SHELF IN 
THE GULF OF MEXICO 
‘‘Sec. 5901. Imposition of tax. 
‘‘Sec. 5902. Taxable crude oil or natural gas and removal price. 
‘‘Sec. 5903. Special rules and definitions. 
‘‘SEC. 5901. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—In addition to any other tax im-
posed under this title, there is hereby imposed a tax equal 
to 13 percent of the removal price of any taxable crude 
oil or natural gas removed from the premises during any 
taxable period. 
‘‘(b) CREDIT FOR FEDERAL ROYALTIES PAID.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by subsection (a) with 
respect to the production of any taxable crude oil or 
natural gas an amount equal to the aggregate 
amount of royalties paid under Federal law with re-
spect to such production. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(2) LIMITATION.—The aggregate amount of 
credits allowed under paragraph (1) to any taxpayer 
for any taxable period shall not exceed the amount 
of tax imposed by subsection (a) for such taxable pe-
riod. 
‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 
this section shall be paid by the producer of the taxable 
crude oil or natural gas. 
‘‘SEC. 5902. TAXABLE CRUDE OIL OR NATURAL GAS AND RE-
MOVAL PRICE. 
‘‘(a) TAXABLE CRUDE OIL OR NATURAL GAS.—For 
purposes of this chapter, the term ‘taxable crude oil or 
natural gas’ means crude oil or natural gas which is pro-
duced from Federal submerged lands on the outer Conti-
nental Shelf in the Gulf of Mexico pursuant to a lease 
entered into with the United States which authorizes the 
production. 
‘‘(b) REMOVAL PRICE.—For purposes of this chap-
ter— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘removal price’ 
means— 
‘‘(A) in the case of taxable crude oil, the 
amount for which a barrel of such crude oil is 
sold, and 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(B) in the case of taxable natural gas, the 
amount per 1,000 cubic feet for which such 
natural gas is sold. 
‘‘(2) SALES BETWEEN RELATED PERSONS.—In 
the case of a sale between related persons, the re-
moval price shall not be less than the constructive 
sales price for purposes of determining gross income 
from the property under section 613. 
‘‘(3) OIL
OR
NATURAL
GAS
REMOVED
FROM 
PROPERTY BEFORE SALE.—If crude oil or natural 
gas is removed from the property before it is sold, 
the removal price shall be the constructive sales 
price for purposes of determining gross income from 
the property under section 613. 
‘‘(4) REFINING BEGUN ON PROPERTY.—If the 
manufacture or conversion of crude oil into refined 
products begins before such oil is removed from the 
property— 
‘‘(A) such oil shall be treated as removed 
on the day such manufacture or conversion be-
gins, and 
‘‘(B) the removal price shall be the con-
structive sales price for purposes of determining 
gross income from the property under section 
613. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(5) PROPERTY.—The term ‘property’ has the 
meaning given such term by section 614. 
‘‘SEC. 5903. SPECIAL RULES AND DEFINITIONS. 
‘‘(a) ADMINISTRATIVE REQUIREMENTS.— 
‘‘(1) WITHHOLDING AND DEPOSIT OF TAX.— 
The Secretary shall provide for the withholding and 
deposit of the tax imposed under section 5901 on a 
quarterly basis. 
‘‘(2) RECORDS AND INFORMATION.—Each tax-
payer liable for tax under section 5901 shall keep 
such records, make such returns, and furnish such 
information (to the Secretary and to other persons 
having an interest in the taxable crude oil or natural 
gas) with respect to such oil as the Secretary may 
by regulations prescribe. 
‘‘(3) TAXABLE PERIODS; RETURN OF TAX.— 
‘‘(A) TAXABLE PERIOD.—Except as pro-
vided by the Secretary, each calendar year shall 
constitute a taxable period. 
‘‘(B) RETURNS.—The Secretary shall pro-
vide for the filing, and the time for filing, of the 
return of the tax imposed under section 5901. 
‘‘(b) DEFINITIONS.—For purposes of this chapter— 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
‘‘(1) PRODUCER.—The term ‘producer’ means 
the holder of the economic interest with respect to 
the crude oil or natural gas. 
‘‘(2) CRUDE OIL.—The term ‘crude oil’ includes 
crude oil condensates and natural gasoline. 
‘‘(3) PREMISES AND CRUDE OIL PRODUCT.— 
The terms ‘premises’ and ‘crude oil product’ have 
the same meanings as when used for purposes of de-
termining gross income from the property under sec-
tion 613. 
‘‘(c) ADJUSTMENT OF REMOVAL PRICE.—In deter-
mining the removal price of oil or natural gas from a prop-
erty in the case of any transaction, the Secretary may ad-
just the removal price to reflect clearly the fair market 
value of oil or natural gas removed. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this chapter.’’. 
(b) DEDUCTIBILITY OF TAX.—The first sentence of 
section 164(a) of the Internal Revenue Code of 1986 is 
amended by inserting after paragraph (4) the following 
new paragraph: 
‘‘(5) The tax imposed by section 5901(a) (after 
application of section 5901(b)) on the severance of 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
crude oil or natural gas from the outer Continental 
Shelf in the Gulf of Mexico.’’. 
(c) CLERICAL AMENDMENT.—The table of chapters 
for subtitle E is amended by adding at the end the fol-
lowing new item: 
‘‘CHAPTER 56. Tax on severance of crude oil and natural gas 
from the outer Continental Shelf in the Gulf of 
Mexico.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to crude oil or natural gas removed 
after December 31, 2021. 
SEC. 28. REPEAL OF CORPORATE INCOME TAX EXEMPTION 
FOR 
PUBLICLY 
TRADED 
PARTNERSHIPS 
WITH QUALIFYING INCOME AND GAINS FROM 
ACTIVITIES RELATING TO FOSSIL FUELS. 
(a) IN GENERAL.—Section 7704(d)(1) of the Inter-
nal Revenue Code of 1986 is amended by inserting ‘‘or 
any coal, petroleum, natural gas, or any derivative of coal, 
petroleum, or natural gas that is used for fuel’’ after ‘‘sec-
tion 613(b)(7)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 
29. 
AMORTIZATION 
OF 
QUALIFIED 
TERTIARY 
INJECTANT EXPENSES. 
(a) IN GENERAL.—Section 193 of the Internal Rev-
enue Code of 1986 is amended— 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) AMORTIZATION
OF
QUALIFIED
TERTIARY 
INJECTANT EXPENSES.— 
‘‘(1) IN
GENERAL.—Any qualified tertiary 
injectant expenses paid or incurred by the taxpayer 
shall be allowed as a deduction ratably over the 84- 
month period beginning on the date that such ex-
pense was paid or incurred. 
‘‘(2) MID-MONTH CONVENTION.—For purposes 
of paragraph (1), any expenses paid or incurred dur-
ing any month shall be treated as paid or incurred 
on the mid-point of such month.’’; and 
(2) by striking subsection (c) and inserting the 
following: 
‘‘(c) EXCLUSIVE METHOD.—Except as provided in 
this section, no depreciation or amortization deduction 
shall be allowed with respect to qualified tertiary injectant 
expenses.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred in 
taxable years beginning after the date of the enactment 
of this Act. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
SEC. 30. AMORTIZATION OF DEVELOPMENT EXPENDI-
TURES. 
(a) IN GENERAL.—Section 616 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘SEC. 616. AMORTIZATION OF DEVELOPMENT EXPENDI-
TURES. 
‘‘(a) IN GENERAL.—Any expenditures paid or in-
curred for the development of a mine or other natural de-
posit (other than an oil or gas well) if paid or incurred 
after the existence of ores or minerals in commercially 
marketable quantities has been disclosed shall be allowed 
as a deduction ratably over the 84-month period beginning 
on the date that such expenditure was paid or incurred. 
‘‘(b) MID-MONTH CONVENTION.—For purposes of 
subsection (a), any expenditures paid or incurred during 
any month shall be treated as paid or incurred on the mid- 
point of such month. 
‘‘(c) EXCLUSIVE METHOD.—Except as provided in 
this section, no depreciation or amortization deduction 
shall be allowed with respect to expenditures described in 
subsection (a). 
‘‘(d) TREATMENT UPON ABANDONMENT.—If any 
property with respect to which expenditures described in 
subsection (a) are paid or incurred is retired or abandoned 
during the 84-month period described in such subsection, 
no deduction shall be allowed on account of such retire-
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
ment or abandonment and the amortization deduction 
under this section shall continue with respect to such pay-
ment.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The item relating to section 616 in the table 
of sections for part I of subchapter I of chapter 1 
of the Internal Revenue Code of 1986 is amended to 
read as follows: 
‘‘Sec. 616. Amortization of development expenditures.’’. 
(2) Section 56(a)(2)(A) of such Code is amend-
ed by striking ‘‘616(a) or’’. 
(3) Section 59(e) of such Code is amended— 
(A) in paragraph (2)— 
(i) in subparagraph (C), by inserting 
‘‘or’’ at the end; 
(ii) by striking subparagraph (D); and 
(iii) by redesignating subparagraph 
(E) as subparagraph (D); and 
(B) in paragraph (5)(A), by striking ‘‘, 
616(a),’’. 
(4) Section 263(a)(1) of such Code is amended 
by striking subparagraph (A). 
(5) Section 263A(c)(3) of such Code is amend-
ed by striking ‘‘616,’’. 
(6) Section 291(b) of such Code is amended— 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(A) in paragraph (1)(B), by striking 
‘‘616(a) or’’; 
(B) in paragraph (2), by striking ‘‘, 
616(a),’’; and 
(C) in paragraph (3), by striking ‘‘, 
616(a),’’. 
(7) Section 312(n)(2)(B) of such Code is 
amended by striking ‘‘616(a) or’’. 
(8) Section 381(c) of such Code is amended by 
striking paragraph (10). 
(9) Section 1016(a) of such Code is amended 
by striking paragraph (9). 
(10) Section 1254(a)(1)(A)(i) of such Code is 
amended by striking ‘‘, 616,’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after the date of the enactment 
of this Act. 
SEC. 31. AMORTIZATION OF CERTAIN MINING EXPLO-
RATION EXPENDITURES. 
(a) IN GENERAL.—Section 617 of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
‘‘SEC. 617. AMORTIZATION OF CERTAIN MINING EXPLO-
RATION EXPENDITURES. 
‘‘(a) IN GENERAL.—Any expenditures paid or in-
curred for the purpose of ascertaining the existence, loca-
tion, extent, or quality of any deposit of ore or other min-
eral, and paid or incurred before the beginning of the de-
velopment stage of the mine, shall be allowed as a deduc-
tion ratably over the 84-month period beginning on the 
date that such expense was paid or incurred. 
‘‘(b) MID-MONTH CONVENTION.—For purposes of 
subsection (a), any expenditures paid or incurred during 
any month shall be treated as paid or incurred on the mid- 
point of such month. 
‘‘(c) EXCLUSIVE METHOD.—Except as provided in 
this section, no depreciation or amortization deduction 
shall be allowed with respect to expenditures described in 
subsection (a). 
‘‘(d) TREATMENT UPON ABANDONMENT.—If any 
property with respect to which expenditures described in 
subsection (a) are paid or incurred is retired or abandoned 
during the 84-month period described in such subsection, 
no deduction shall be allowed on account of such retire-
ment or abandonment and the amortization deduction 
under this section shall continue with respect to such pay-
ment.’’. 
(b) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(1) The item relating to section 617 in the table 
of sections for part I of subchapter I of chapter 1 
of the Internal Revenue Code of 1986 is amended to 
read as follows: 
‘‘Sec. 617. Amortization of certain mining exploration expenditures.’’. 
(2) Section 56(a) of such Code, as amended by 
section 30(b)(2), is amended by striking paragraph 
(2). 
(3) Section 59(e) of such Code, as amended by 
section 30(b)(3), is amended— 
(A) in paragraph (2)— 
(i) in subparagraph (B), by inserting 
‘‘or’’ at the end; 
(ii) in subparagraph (C), by striking 
the comma at the end and inserting a pe-
riod; and 
(iii) by striking subparagraph (D); 
and 
(B) by striking paragraph (5) and insert-
ing the following: 
‘‘(5) DISPOSITIONS.—In the case of any dis-
position of property to which section 1254 applies 
(determined without regard to this section), any de-
duction under paragraph (1) with respect to 
amounts which are allocable to such property shall, 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(D) in paragraph (3), by striking ‘‘or 
617(a) (whichever is appropriate)’’. 
(7) Section 312(n), as amended by section 
30(b)(7), is amended by striking paragraph (2) and 
inserting the following: 
‘‘(2) 
INTANGIBLE
DRILLING
COSTS.—Any 
amount allowable as a deduction under section 
263(c) in determining taxable income (other than 
costs incurred in connection with a nonproductive 
well)— 
‘‘(A) shall be capitalized, and 
‘‘(B) shall be allowed as a deduction rat-
ably over the 60-month period beginning with 
the month in which such amount was paid or 
incurred.’’. 
(8) Section 703(b) of such Code is amended— 
(A) in paragraph (1), by adding ‘‘or’’ at 
the end; 
(B) by striking paragraph (2); and 
(C) by redesignating paragraph (3) as 
paragraph (2). 
(9) Section 751(c) of such Code is amended— 
(A) by inserting ‘‘, as in effect on the day 
before the date of the enactment of the End 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
Polluter Welfare Act of 2021’’ after ‘‘section 
617(f)(2)’’; and 
(B) by striking ‘‘617(d)(1),’’. 
(10) Section 1254(a)(1)(A)(i) of such Code, as 
amended by section 30(b)(10), is amended by strik-
ing ‘‘or 617’’. 
(11) Paragraph (2) of section 1363(c) of such 
Code is amended to read as follows: 
‘‘(2) EXCEPTION.—In the case of an S corpora-
tion, elections under section 901 (relating to taxes of 
foreign countries and possessions of the United 
States) shall be made by each shareholder sepa-
rately.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after the date of the enactment 
of this Act. 
SEC. 32. AMORTIZATION OF INTANGIBLE DRILLING AND 
DEVELOPMENT COSTS IN THE CASE OF OIL 
AND GAS WELLS AND GEOTHERMAL WELLS. 
(a) IN GENERAL.—Subsection (c) of section 263 of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(c) INTANGIBLE DRILLING
AND DEVELOPMENT 
COSTS IN THE CASE OF OIL AND GAS WELLS AND GEO-
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
THERMAL WELLS.—Notwithstanding subsection (a), and 
except as provided in subsection (i), in the case of any 
expenses paid or incurred in connection with intangible 
drilling and development costs related to oil and gas wells 
and wells drilled for any geothermal deposit (as defined 
in section 613(e)(2))— 
‘‘(1) such expenses shall be allowed as a deduc-
tion ratably over the 84-month period beginning on 
the date that such expense was paid or incurred, 
‘‘(2) any such expenses paid or incurred during 
any month shall be treated as paid or incurred on 
the mid-point of such month, 
‘‘(3) except as provided in this subsection, no 
depreciation or amortization deduction shall be al-
lowed with respect to such expenses, and 
‘‘(4) if any property with respect to which such 
intangible drilling and development costs are paid or 
incurred is retired or abandoned during such 84- 
month period, no deduction shall be allowed on ac-
count of such retirement or abandonment and the 
amortization deduction under this subsection shall 
continue with respect to such payment.’’. 
(b) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
(1) Section 57(a)(2)(B)(i) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘263(c) 
or’’. 
(2) Section 59(e) of such Code, as amended by 
sections 30 and 31, is amended— 
(A) in paragraph (2)— 
(i) in subparagraph (A), by inserting 
‘‘or’’ at the end; 
(ii) in subparagraph (B), by striking 
the comma at the end and inserting a pe-
riod; and 
(iii) by striking subparagraph (C); 
and 
(B) by striking paragraph (5). 
(3) Section 263A(c)(3) of such Code, as amend-
ed by sections 30 and 31, is amended by striking 
‘‘263(c),’’. 
(4) Section 291 of such Code, as amended by 
sections 30 and 31, is amended by striking sub-
section (b). 
(5) Section 312(n) of such Code, as amended 
by sections 30 and 31, is amended by striking para-
graph (2). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures paid or incurred 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
in taxable years beginning after the date of the enactment 
of this Act. 
SEC. 33. PERMANENT EXCISE TAX RATE FOR FUNDING OF 
BLACK LUNG DISABILITY TRUST FUND. 
(a) IN GENERAL.—Section 4121 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘$1.10’’ 
and inserting ‘‘$1.38’’; and 
(B) in paragraph (2), by striking ‘‘$.55’’ 
and inserting ‘‘$0.69’’; and 
(2) by striking subsection (e). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply on and after the first day of the 
first calendar month beginning after the date of the enact-
ment of this Act. 
SEC. 34. TERMINATION OF RENEWABLE ELECTRICITY PRO-
DUCTION CREDIT ELIGIBILITY FOR REFINED 
COAL. 
Section 45(e)(8)(A)(ii)(II) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘and before the 
date of enactment of the End Polluter Welfare Act of 
2021’’ after ‘‘such taxable year’’. 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS
SEC. 35. TREATMENT OF FOREIGN OIL RELATED INCOME 
AS SUBPART F INCOME. 
(a) IN GENERAL.—Section 954(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ at 
the end of paragraph (2), by striking the period at the 
end of paragraph (3) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(4) the foreign base company oil related in-
come for the taxable year (determined under sub-
section (g) and reduced as provided in subsection 
(b)(5)).’’. 
(b) FOREIGN BASE COMPANY OIL RELATED IN-
COME.—Section 954 of the Internal Revenue Code of 1986 
is amended by inserting after subsection (e) the following 
new subsection: 
‘‘(g) FOREIGN BASE COMPANY OIL RELATED IN-
COME.—For purposes of this section— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘foreign base com-
pany oil related income’ means foreign oil related in-
come (within the meaning of paragraphs (2) and (3) 
of section 907(c)) other than income derived from a 
source within a foreign country in connection with— 
‘‘(A) oil or gas which was extracted from 
an oil or gas well located in such foreign coun-
try, or 
VerDate Sep 11 2014 
06:42 May 18, 2021
Jkt 019200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H2102.IH
H2102
pbinns on DSKJLVW7X2PROD with BILLS