I
107TH CONGRESS
1ST SESSION
H. R. 794
To amend the Internal Revenue Code of 1986 to extend the section 29
credit for producing fuel from a nonconventional source.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 28, 2001
Mr. MOORE (for himself, Mr. MORAN of Kansas, Mr. TANNER, Mr. STEN-
HOLM, Ms. MCCARTHY of Missouri, Mr. SANDLIN, Mr. CONDIT, Mr.
LANTOS, Mr. MCGOVERN, Mr. ABERCROMBIE, and Mr. SHOWS) intro-
duced 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
the section 29 credit for producing fuel from a non-
conventional source.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Energy Security for
American Consumers Act of 2001’’.
SEC. 2. EXTENSION OF CREDIT FOR PRODUCING FUEL
FROM A NONCONVENTIONAL SOURCE.
(a) EXTENSION OF CREDIT.—Subsection (f) of sec-
tion 29 of the Internal Revenue Code of 1986 (relating
to credit for producing fuel from a nonconventional
source) is amended—
(1) in paragraph (1)(A), by inserting before
‘‘or’’ the following: ‘‘or from a well drilled after De-
cember 30, 2000, and before January 1, 2012,’’,
(2) in paragraph (1)(B), by inserting before
‘‘and’’ at the end the following: ‘‘or placed in service
after December 30, 2000, and before January 1,
2012,’’, and
(3) by striking paragraph (2) and inserting the
following:
‘‘(2) which are—
‘‘(A) sold before January 1, 2003, in the
case of wells drilled or facilities placed in serv-
ice before January 1, 1993, and
‘‘(B) sold before January 1, 2014, in the
case of wells drilled or facilities placed in serv-
ice before January 1, 2012.’’.
(b) REDUCTION IN AMOUNT OF CREDIT BY 20 PER-
CENT PER YEAR STARTING IN 2010.—Subsection (a) of
section 29 of such Code is amended to read as follows:
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—There shall be allowed as a
credit against the tax imposed by this chapter for
the taxable year an amount equal to—
‘‘(A) the applicable amount, multiplied by
‘‘(B) the barrel-of-oil equivalent of quali-
fied fuels—
‘‘(i) sold by the taxpayer to an unre-
lated person during the taxable year, and
‘‘(ii) the production of which is attrib-
utable to the taxpayer.
‘‘(2) APPLICABLE AMOUNT.—For purposes of
paragraph (1), the applicable amount is the amount
determined in accordance with the following table:
‘‘In the case of taxable
The applicable amount
years beginning in calendar year:
is:
2002 to 2011 .............................................................
$3.00
2012 ..........................................................................
$2.60
2013 ..........................................................................
$2.00
2014 ..........................................................................
$1.40
2015 ..........................................................................
$0.80
2016 and thereafter ..................................................
$0.00.’’
(c) CREDIT ALLOWED AGAINST BOTH REGULAR TAX
AND ALTERNATIVE MINIMUM TAX.—Paragraph (6) of
section 29(b) of such Code is amended to read as follows:
‘‘(6) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowed by subsection (a) for any taxable
year shall not exceed the excess of—
‘‘(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax im-
posed by section 55, over
‘‘(B) the sum of the credits allowable
under this part (other than subpart C and this
section) and under section 1397E.’’
(d) QUALIFIED FUELS TO INCLUDE HEAVY OIL.—
Subsection (c) of section 29 of such Code (defining quali-
fied fuels) is amended—
(1) in paragraph (1), by striking ‘‘and’’ at the
end of subparagraph (B), by striking the period at
the end of subparagraph (C) and inserting ‘‘, and’’,
and by adding at the end the following new subpara-
graph:
‘‘(D) heavy oil, as defined in section
613A(c)(6)(7).’’, and
(2) by adding at the end the following new
paragraph:
‘‘(4) SPECIAL RULE FOR HEAVY OIL.—Heavy
oil shall be considered to be a qualified fuel only if
it is produced from a well drilled, or in a facility
placed in service, after the date of the enactment of
the Energy Security for American Consumers Act of
2001, and before January 1, 2012.’’
(e) BARREL-OF-OIL EQUIVALENT IN THE CASE OF
NATURAL GAS.—Paragraph (5) of section 29(d) of such
Code is amended by adding at the end the following: ‘‘In
the case of natural gas, the term means MCF (determined
at standard temperature and pressure).’’
(f) APPLICABILITY TO CERTAIN FACILITIES.—Para-
graph (1) of section 29(g) of such Code is amended to
read as follows:
‘‘(1) IN GENERAL.—In the case of a facility for
producing qualified fuels described in subparagraph
(B)(ii) or (C) of subsection (c)(1), for purposes of
subsection (f)(1)(B), such facility shall be treated as
being placed in service before January 1, 1993, if
such facility is placed in service before July 1, 1998,
pursuant to a binding written contract in effect be-
fore January 1, 1997.’’.
(g) EFFECTIVE DATE.—The amendments made by
this Act shall apply to taxable years beginning after De-
cember 31, 2001.
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