I 
114TH CONGRESS 
1ST SESSION H. R. 4040 
To amend the Internal Revenue Code of 1986 to modify and extend certain 
tax incentives relating to energy. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 17, 2015 
Mr. BLUMENAUER (for himself, Ms. EDWARDS, Mr. MCDERMOTT, Mr. PAS-
CRELL, Mr. HONDA, Mr. VAN
HOLLEN, Ms. MCCOLLUM, Mr. 
LOWENTHAL, Mr. TED LIEU of California, Mr. HIGGINS, Mr. NEAL, Ms. 
LINDA T. SA´NCHEZ of California, Ms. LEE, Mr. QUIGLEY, Mr. CART-
WRIGHT, Ms. NORTON, Mr. RANGEL, Mr. HUFFMAN, and Mr. GRIJALVA) 
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 modify 
and extend certain tax incentives relating to energy. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Bridge to a Clean Energy Future Act of 2015’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
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to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title, etc. 
TITLE I—EXTENSION AND MODIFICATION OF ENERGY TAX 
PROVISIONS 
Sec. 101. Extension and modification of credit for nonbusiness energy property. 
Sec. 102. Extension of credit for new qualified fuel cell motor vehicles. 
Sec. 103. Extension of credit for alternative fuel vehicle refueling property. 
Sec. 104. Extension of second generation biofuel producer credit. 
Sec. 105. Extension and reform of biodiesel tax incentives. 
Sec. 106. Extension of credits with respect to facilities producing energy from 
certain renewable resources. 
Sec. 107. Extension of credit for energy-efficient new homes. 
Sec. 108. Extension of special allowance for second generation biofuel plant 
property. 
Sec. 109. Extension and modification of energy efficient commercial buildings 
deduction. 
Sec. 110. Extension of special rule for sales or dispositions to implement FERC 
or State electric restructuring policy for qualified electric utili-
ties. 
Sec. 111. Extension of excise tax credits relating to alternative fuels. 
TITLE II—ADDITIONAL PROVISIONS 
Sec. 201. Extension of energy credit for certain property under construction. 
Sec. 202. Modifications in credit for combined heat and power system property. 
Sec. 203. Energy credit for waste heat to power property. 
Sec. 204. Investment tax credit for community wind projects having generation 
capacity of not more than 20 megawatts. 
Sec. 205. Extension of publicly traded partnership ownership structure to en-
ergy power generation projects, transportation fuels, and re-
lated energy activities. 
Sec. 206. Additional advanced energy manufacturing credit allocations. 
TITLE III—ENDING OIL AND GAS TAX SUBSIDIES 
Sec. 301. Amortization of geological and geophysical expenditures. 
Sec. 302. Producing oil and gas from marginal wells. 
Sec. 303. Enhanced oil recovery credit. 
Sec. 304. Intangible drilling and development costs in the case of oil and gas 
wells. 
Sec. 305. Repeal of percentage depletion for oil and gas wells. 
Sec. 306. Repeal of deduction for tertiary injectants. 
Sec. 307. Repeal of exception to passive loss limitations for working interests 
in oil and gas properties. 
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Sec. 308. Deduction for income attributable to domestic production activities 
not allowed with respect to oil and gas activities. 
Sec. 309. Prohibition on using last-in, first-out accounting for oil and gas com-
panies. 
Sec. 310. Modifications of foreign tax credit rules applicable to dual capacity 
taxpayers. 
TITLE I—EXTENSION AND MODI-
FICATION OF ENERGY TAX 
PROVISIONS 
SEC. 101. EXTENSION AND MODIFICATION OF CREDIT FOR 
NONBUSINESS ENERGY PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 25C(g) 
is amended by striking ‘‘December 31, 2014’’ and insert-
ing ‘‘December 31, 2016’’. 
(b) UPDATED ENERGY STAR REQUIREMENTS FOR 
WINDOWS, DOORS, SKYLIGHTS, AND ROOFING.— 
(1) IN
GENERAL.—Paragraph (1) of section 
25C(c) is amended by striking ‘‘which meets’’ and 
all that follows through ‘‘requirements)’’. 
(2) ENERGY EFFICIENT BUILDING ENVELOPE 
COMPONENT.—Subsection (c) of section 25C is 
amended by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively, and by insert-
ing after paragraph (1) the following new para-
graph: 
‘‘(2) ENERGY EFFICIENT BUILDING ENVELOPE 
COMPONENT.—The term ‘energy efficient building 
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envelope component’ means a building envelope com-
ponent which meets— 
‘‘(A) applicable Energy Star program re-
quirements, in the case of a roof or roof prod-
ucts, 
‘‘(B) version 6.0 Energy Star program re-
quirements, in the case of an exterior window, 
a skylight, or an exterior door, and 
‘‘(C) the prescriptive criteria for such com-
ponent established by the 2009 International 
Energy Conservation Code, as such Code (in-
cluding supplements) is in effect on the date of 
the enactment of the American Recovery and 
Reinvestment Tax Act of 2009, in the case of 
any other component.’’. 
(3) CONFORMING AMENDMENT.—Subparagraph 
(D) of section 25C(c)(3), as so redesignated, is 
amended to read as follows: 
‘‘(D) any roof or roof products which are 
installed on a dwelling unit and are specifically 
and primarily designed to reduce the heat gain 
of such dwelling unit.’’. 
(c) SEPARATE STANDARDS
FOR TANKLESS
AND 
STORAGE WATER HEATERS.— 
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(1) IN GENERAL.—Subparagraph (D) of section 
25C(d)(3) is amended by striking ‘‘which has either’’ 
and all that follows and inserting ‘‘which has ei-
ther— 
‘‘(i) in the case of a storage water 
heater, an energy factor of at least 0.80 or 
a thermal efficiency of at least 90 percent, 
and 
‘‘(ii) in the case of any other water 
heater, an energy factor of at least 0.90 or 
a thermal efficiency of at least 90 percent, 
and’’. 
(2) STORAGE WATER HEATERS.—Paragraph (3) 
of section 25C(d) is amended by adding at the end 
the following flush sentence: 
‘‘For purposes of subparagraph (D)(i), the term 
‘storage water heater’ means a water heater that has 
a water storage capacity of more than 20 gallons but 
not more than 55 gallons.’’. 
(d) MODIFICATION
OF TESTING STANDARDS
FOR 
BIOMASS
STOVES.—Subparagraph 
(E) 
of 
section 
25C(d)(3) is amended by inserting before the period the 
following: ‘‘, when tested using the higher heating value 
of the fuel and in accordance with the Canadian Standards 
Administration B415.1 test protocol’’. 
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(e) SEPARATE STANDARD
FOR OIL HOT WATER 
BOILERS.—Paragraph (4) of section 25C(d) is amended 
by striking ‘‘95’’ and inserting ‘‘95 (90 in the case of an 
oil hot water boiler)’’. 
(f) INSTALLATION COSTS FOR QUALIFIED ENERGY 
EFFICIENCY IMPROVEMENTS.—Paragraph (1) of sub-
section (c) of section 25C is amended by adding at the 
end the following flush sentence: 
‘‘Such term includes expenditures for labor costs 
properly allocable to the onsite preparation, assem-
bly, or original installation of the component.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2014. 
SEC. 102. EXTENSION OF CREDIT FOR NEW QUALIFIED 
FUEL CELL MOTOR VEHICLES. 
(a) IN GENERAL.—Paragraph (1) of section 30B(k) 
is amended by striking ‘‘December 31, 2014’’ and insert-
ing ‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property purchased after De-
cember 31, 2014. 
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SEC. 103. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 
VEHICLE REFUELING PROPERTY. 
(a) IN GENERAL.—Subsection (g) of section 30C is 
amended by striking ‘‘December 31, 2014’’ and inserting 
‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2014. 
SEC. 104. EXTENSION OF SECOND GENERATION BIOFUEL 
PRODUCER CREDIT. 
(a) IN GENERAL.—Clause (i) of section 40(b)(6)(J) 
is amended by striking ‘‘January 1, 2015’’ and inserting 
‘‘January 1, 2017’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this subsection shall apply to qualified second generation 
biofuel production after December 31, 2014. 
SEC. 105. EXTENSION AND REFORM OF BIODIESEL TAX IN-
CENTIVES. 
(a) INCOME TAX CREDIT.— 
(1) EXTENSION.— 
(A) CREDITS FOR BIODIESEL AND RENEW-
ABLE DIESEL USED AS FUEL.—Subsection (g) 
of section 40A is amended by striking ‘‘Decem-
ber 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
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(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall apply to fuel sold 
or used after December 31, 2014. 
(2) REFORM OF INCOME TAX CREDIT.— 
(A) IN
GENERAL.—So much of section 
40A as precedes subsection (c) is amended to 
read as follows: 
‘‘SEC. 40A. BIODIESEL FUELS CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible taxpayer, the biodiesel fuels credit 
determined under this section for the taxable year is $1.00 
for each gallon of biodiesel produced by the taxpayer which 
during the taxable year— 
‘‘(1) is sold by the producer of such biodiesel to 
another person— 
‘‘(A) for use by such other person’s trade 
or business as a fuel or in the production of a 
biodiesel mixture (other than casual off-farm 
production), or 
‘‘(B) who sells such biodiesel at retail to 
another person and places such biodiesel in the 
fuel tank of such other person, or 
‘‘(2) is used by such producer for any purpose 
described in paragraph (1). 
‘‘(b) INCREASED CREDIT FOR SMALL PRODUCERS.— 
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‘‘(1) IN GENERAL.—In the case of any eligible 
small biodiesel producer, subsection (a) shall be ap-
plied by increasing the dollar amount contained 
therein by 10 cents. 
‘‘(2) LIMITATION.—Paragraph (1) shall only 
apply with respect to the first 15,000,000 gallons of 
biodiesel produced by any eligible small biodiesel 
producer during any taxable year.’’. 
(B) DEFINITIONS AND SPECIAL RULES.— 
Section 40A(d) is amended by striking all that 
follows paragraph (1) and inserting the fol-
lowing: 
‘‘(2) ELIGIBLE TAXPAYER.— 
‘‘(A) IN GENERAL.—The term ‘eligible tax-
payer’ means, with respect to any gallon of bio-
diesel, the producer of such gallon if such pro-
ducer has paid the tax imposed by section 4081 
on such biodiesel. 
‘‘(B) SPECIAL RULE FOR ELIGIBLE DIS-
CRETIONARY BLENDERS.—For purposes of this 
section (other than subsection (b)), an eligible 
discretionary blender shall be treated as the 
producer of any gallon of biodiesel which is 
used to make a qualified biodiesel mixture if— 
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‘‘(i) the producer of such biodiesel 
(determined without regard to this sub-
paragraph)— 
‘‘(I) did not pay the tax imposed 
under section 4081 with respect to 
such gallon, and 
‘‘(II) assigns the credit allowed 
under this section to the eligible dis-
cretionary blender in such form and 
manner as provided by the Secretary, 
and 
‘‘(ii) such eligible discretionary blend-
er pays the tax imposed under section 
4081 with respect to such gallon. 
For purposes of the preceding sentence, an eli-
gible discretionary blender shall be treated as 
producing a gallon of biodiesel in the taxable 
year in which the sale or use of the qualified 
biodiesel mixture occurs. 
‘‘(C) ELIGIBLE
DISCRETIONARY
BLEND-
ER.—For purposes of subparagraph (B), the 
term ‘eligible discretionary blender’ means any 
person who— 
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‘‘(i) is registered under section 4101 
as a blender of qualified biodiesel mixtures, 
and 
‘‘(ii) has used 10,000,000 or more 
gallons of biodiesel in the production of 
qualified biodiesel mixtures in the pre-
ceding taxable year. 
‘‘(3) BIODIESEL
MIXTURE; QUALIFIED
BIO-
DIESEL MIXTURE.— 
‘‘(A) BIODIESEL
MIXTURE.—The term 
‘biodiesel mixture’ means a mixture which con-
sists of biodiesel and diesel fuel (as defined in 
section 4083(a)(3)), determined without regard 
to any use of kerosene. 
‘‘(B) QUALIFIED BIODIESEL MIXTURE.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied biodiesel mixture’ means a biodiesel 
mixture which is produced by an eligible 
discretionary blender and— 
‘‘(I) sold by such eligible discre-
tionary blender to any person for use 
as a fuel, or 
‘‘(II) used by such eligible discre-
tionary blender as a fuel. 
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‘‘(ii) SALE
OR
USE
MUST
BE
IN 
TRADE
OR
BUSINESS, ETC.—A biodiesel 
mixture shall not be treated as a qualified 
biodiesel mixture unless the sale or use de-
scribed in clause (i) is in a trade or busi-
ness of the eligible discretionary blender. 
‘‘(4) BIODIESEL NOT USED FOR A QUALIFIED 
PURPOSE.—If— 
‘‘(A) any credit was determined with re-
spect to any biodiesel under this section, and 
‘‘(B) any person uses such biodiesel for a 
purpose not described in subsection (a), 
then there is hereby imposed on such person a tax 
equal to the product of the rate applicable under 
subsection (a) and the number of gallons of such 
biodiesel. 
‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND 
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of 
section 52 shall apply. 
‘‘(6) LIMITATION TO BIODIESEL WITH CONNEC-
TION TO THE UNITED STATES.—No credit shall be 
determined under subsection (a) with respect to bio-
diesel unless such biodiesel is produced in the United 
States. For purposes of this paragraph, the term 
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‘United States’ includes any possession of the 
United States.’’. 
(C) RULES FOR SMALL BIODIESEL PRO-
DUCERS.— 
(i) IN GENERAL.—Section 40A(e) is 
amended— 
(I) by striking ‘‘agri-biodiesel’’ 
each place it appears in paragraphs 
(1) and (5)(A) and inserting ‘‘bio-
diesel’’, 
(II) 
by 
striking 
‘‘subsection 
(b)(4)(C)’’ each place it appears in 
paragraphs (2) and (3) and inserting 
‘‘subsection (b)(2)’’, and 
(III) 
by 
striking 
‘‘subsection 
(a)(3)’’ each place it appears in para-
graphs (5)(A), (6)(A)(i), and (6)(B)(i) 
and inserting ‘‘subsection (b)’’. 
(ii) The heading for subsection (e) of 
section 40A is amended by striking ‘‘AGRI- 
BIODIESEL’’ and inserting ‘‘BIODIESEL’’. 
(iii) The headings for paragraphs (1) 
and (6) of section 40A(e) are each amend-
ed by striking ‘‘AGRI-BIODIESEL’’ and in-
serting ‘‘BIODIESEL’’. 
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(D) CONFORMING AMENDMENTS RELATED 
TO
RENEWABLE
DIESEL.—Section 40A(f) is 
amended— 
(i) by striking ‘‘Subsection (b)(4)’’ 
and inserting ‘‘Subsection (b)’’, and 
(ii) by striking paragraph (4) and in-
serting the following: 
‘‘(4) CERTAIN AVIATION FUEL.—Except as pro-
vided in the last 3 sentences of paragraph (3), the 
term ‘renewable diesel’ shall include fuel derived 
from biomass which meets the requirements of a De-
partment of Defense specification for military jet 
fuel or an American Society for Testing and Mate-
rials specification for aviation turbine fuel.’’. 
(E) REGISTRATION OF ELIGIBLE DISCRE-
TIONARY
BLENDERS.—Section 4101(a)(1) is 
amended— 
(i) by striking ‘‘and’’ before ‘‘every 
person 
producing 
second 
generation 
biofuel’’, and 
(ii) by inserting ‘‘, and every person 
producing qualified biodiesel mixtures (as 
defined in section 40A(d)(3)) 10,000,000 
or more gallons per year’’ after ‘‘section 
40(b)(6)(E))’’. 
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(F) CLERICAL AMENDMENT.—The table of 
sections for subpart D of part IV of subchapter 
A of chapter 1 is amended by striking the item 
relating to section 40A and inserting the fol-
lowing new item: 
‘‘Sec. 40A. Biodiesel fuels credit.’’. 
(G) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to fuel sold 
or used after December 31, 2015. 
(b) EXCISE TAX INCENTIVES.— 
(1) EXTENSION.— 
(A) IN GENERAL.—Paragraph (6) of sec-
tion 6426(c) is amended by striking ‘‘December 
31, 2014’’ and inserting ‘‘December 31, 2016’’. 
(B) PAYMENTS.—Subparagraph (B) of 
section 6427(e)(6) is amended by striking ‘‘De-
cember 31, 2014’’ and inserting ‘‘December 31, 
2016’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to fuel sold 
or used after December 31, 2014. 
(D) SPECIAL RULE FOR CERTAIN PERIODS 
DURING 2015.—Notwithstanding any other pro-
vision of law, in the case of any biodiesel mix-
ture credit properly determined under section 
6426(c) of the Internal Revenue Code of 1986 
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for periods after December 31, 2014, and on or 
before the last day of the first calendar quarter 
ending after the date of the enactment of this 
Act, such credit shall be allowed, and any re-
fund or payment attributable to such credit (in-
cluding any payment under section 6427(e) of 
such Code) shall be made, only in such manner 
as the Secretary of the Treasury (or the Sec-
retary’s delegate) shall provide. Such Secretary 
shall issue guidance within 30 days after the 
date of the enactment of this Act providing for 
a one-time submission of claims covering peri-
ods described in the preceding sentence. Such 
guidance shall provide for a 180-day period for 
the submission of such claims (in such manner 
as prescribed by such Secretary) to begin not 
later than 30 days after such guidance is 
issued. Such claims shall be paid by such Sec-
retary not later than 60 days after receipt. If 
such Secretary has not paid pursuant to a claim 
filed under this subsection within 60 days after 
the date of the filing of such claim, the claim 
shall be paid with interest from such date de-
termined by using the overpayment rate and 
method under section 6621 of such Code. 
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(2) REFORM OF EXCISE TAX CREDIT.— 
(A) IN GENERAL.—Subsection (c) of sec-
tion 6426 is amended— 
(i) by striking all that precedes para-
graph (6) and inserting the following: 
‘‘(c) BIODIESEL PRODUCTION CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, in the case of an eligible taxpayer, the biodiesel 
production credit is $1.00 for each gallon of bio-
diesel produced by the taxpayer and which— 
‘‘(A) is sold by such producer to another 
person— 
‘‘(i) for use by such other person’s 
trade or business as a fuel or in the pro-
duction of a biodiesel mixture (other than 
casual off-farm production), or 
‘‘(ii) who sells such biodiesel at retail 
to another person and places such biodiesel 
in the fuel tank of such other person, or 
‘‘(B) is used by such producer for any pur-
pose described in subparagraph (A). 
‘‘(2) SPECIAL
RULE
FOR
ELIGIBLE
DISCRE-
TIONARY
BLENDERS.—For purposes of this sub-
section and section 6427(e)(3), an eligible discre-
tionary blender shall be treated as the producer of 
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any gallon of biodiesel which is used to make a 
qualified biodiesel mixture if— 
‘‘(A) the producer of such biodiesel (deter-
mined without regard to this subparagraph)— 
‘‘(i) did not pay the tax imposed 
under section 4081 with respect to such 
gallon, and 
‘‘(ii) assigns the credit allowed under 
this section to the eligible discretionary 
blender in such form and manner as pro-
vided by the Secretary, and 
‘‘(B) such eligible discretionary blender 
pays the tax imposed under section 4081 with 
respect to such gallon. 
For purposes of the preceding sentence, an eligible 
discretionary blender shall not be treated as pro-
ducing a gallon of biodiesel before the date on which 
the sale or use of the qualified biodiesel mixture oc-
curs. 
‘‘(3) DEFINITIONS.—Any term used in this sub-
section which is also used in section 40A shall have 
the meaning given such term by section 40A.’’, and 
(ii) by redesignating paragraph (6), as 
amended by paragraph (1)(A), as para-
graph (4). 
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(B) PRODUCER
REGISTRATION
REQUIRE-
MENT.—Subsection (a) of section 6426 is 
amended by striking ‘‘subsections (d) and (e)’’ 
in the flush sentence at the end and inserting 
‘‘subsections (c), (d), and (e)’’. 
(C) RECAPTURE.— 
(i) IN
GENERAL.—Subsection (f) of 
section 6426 is amended— 
(I) by striking ‘‘or biodiesel’’ 
each place it appears in subpara-
graphs (A) and (B)(i) of paragraph 
(1), 
(II) by striking ‘‘or biodiesel mix-
ture’’ in paragraph (1)(A), and 
(III) by redesignating paragraph 
(2) as paragraph (3) and by inserting 
after paragraph (1) the following new 
paragraph: 
‘‘(2) BIODIESEL.—If any credit was determined 
under this section or paid pursuant to section 
6427(e) with respect to the production of any bio-
diesel and any person uses such biodiesel for a pur-
pose not described in subsection (c)(1), then there is 
hereby imposed on such person a tax equal to $1 for 
each gallon of such biodiesel.’’. 
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(ii) CONFORMING AMENDMENTS.— 
(I) Paragraph (3) of section 
6426(f), as redesignated by clause 
(i)(III), is amended by inserting ‘‘or 
(2)’’ after ‘‘paragraph (1)’’. 
(II) The heading for paragraph 
(1) of section 6426(f) is amended by 
striking ‘‘IMPOSITION
OF
TAX’’ and 
inserting ‘‘IN GENERAL’’. 
(D) 
LIMITATION.—Section 
6426(i) 
is 
amended— 
(i) in paragraph (2)— 
(I) by striking ‘‘biodiesel or’’, and 
(II) 
by 
striking 
‘‘BIODIESEL 
AND’’ in the heading, and 
(ii) by inserting after paragraph (2) 
the following new paragraph: 
‘‘(3) BIODIESEL.—No credit shall be deter-
mined under this section with respect to biodiesel 
unless such biodiesel is produced in the United 
States.’’. 
(E) CLERICAL AMENDMENTS.— 
(i) The heading of section 6426 is 
amended by striking ‘‘ALCOHOL
FUEL, 
BIODIESEL, AND
ALTERNATIVE
FUEL 
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MIXTURES’’ and inserting ‘‘ALCOHOL 
FUEL MIXTURES, BIODIESEL PRODUC-
TION, AND
ALTERNATIVE
FUEL
MIX-
TURES’’. 
(ii) The item relating to section 6426 
in the table of sections for subchapter B of 
chapter 65 is amended by striking ‘‘alcohol 
fuel, biodiesel, and alternative fuel mix-
tures’’ and inserting ‘‘alcohol fuel mix-
tures, biodiesel production, and alternative 
fuel mixtures’’. 
(F) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to fuel sold 
or used after December 31, 2015. 
(3) REFORM OF EXCISE PAYMENTS OF CRED-
IT.— 
(A) IN GENERAL.—Subsection (e) of sec-
tion 6427, as amended by paragraph (1)(B), is 
amended— 
(i) by striking ‘‘or the biodiesel mix-
ture credit’’ in paragraph (1), 
(ii) by redesignating paragraphs (3) 
through (6) as paragraphs (4) through (7), 
respectively, and by inserting after para-
graph (2) the following new paragraph: 
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‘‘(3) BIODIESEL PRODUCTION CREDIT.—If any 
person produces biodiesel and sells or uses such bio-
diesel as provided in section 6426(c)(1), the Sec-
retary shall pay (without interest) to such person an 
amount equal to the biodiesel production credit with 
respect to such biodiesel.’’, 
(iii) by striking ‘‘paragraph (1) or 
(2)’’ each place it appears in paragraphs 
(4) and (6), as redesignated by paragraph 
(2), and inserting ‘‘paragraph (1), (2), or 
(3)’’, 
(iv) by striking ‘‘alternative fuel’’ each 
place it appears in paragraphs (4) and (6), 
as redesignated by paragraph (2), and in-
serting ‘‘fuel’’, and 
(v) by striking ‘‘biodiesel mixture (as 
defined in section 6426(c)(3))’’ in para-
graph (7)(B), as so redesignated, and in-
serting ‘‘biodiesel (within the meaning of 
section 40A)’’. 
(B) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to fuel sold 
or used after December 31, 2015. 
(c) TREATMENT
OF BIODIESEL
AS
A TAXABLE 
FUEL.— 
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(1) IN GENERAL.— 
(A) 
TAXABLE
FUEL
INCLUDES
BIO-
DIESEL.—Paragraph (1) of section 4083(a) is 
amended by striking ‘‘and’’ at the end of sub-
paragraph (B), by striking the period at the 
end of subparagraph (C) and inserting ‘‘, and’’, 
and by adding at the end the following new sub-
paragraph: 
‘‘(D) biodiesel.’’. 
(B) BIODIESEL DEFINED.—Subsection (a) 
of section 4083 is amended by adding at the 
end the following new paragraph: 
‘‘(4) BIODIESEL.—The term ‘biodiesel’ has the 
meaning given such term under section 40A(d)(1), 
determined without regard to the last sentence 
thereof.’’. 
(2) 
BIODIESEL
PRODUCTION
FACILITIES 
TREATED AS REFINERIES.— 
(A) IN GENERAL.—Subsection (a) of sec-
tion 4081 is amended by adding at the end the 
following new paragraph: 
‘‘(5) BIODIESEL PRODUCTION FACILITIES AND 
BLENDING FACILITIES TREATED AS REFINERIES.— 
For purposes of this part— 
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‘‘(A) any facility which is used to produce 
biodiesel, and 
‘‘(B) any biodiesel blending facility, 
shall be treated as a refinery with respect to bio-
diesel.’’. 
(B) BIODIESEL BLENDING FACILITY DE-
FINED.—Section 4083 is amended by adding at 
the end the following new subsection: 
‘‘(e) BIODIESEL BLENDING FACILITY.—For pur-
poses of this subpart, the term ‘biodiesel blending facility’ 
means any facility that is operated by an eligible discre-
tionary blender (as defined in section 40A(d)(2)(C)).’’. 
(C) 
BULK
TRANSFERS.—Subparagraph 
(B) of section 4081(a)(1) is amended by adding 
at the end the following new clause: 
‘‘(iii) 
SPECIAL
RULES
FOR
BIO-
DIESEL.—The tax imposed by this para-
graph shall not apply to the removal or 
entry of biodiesel to any refinery or ter-
minal if the person removing or entering 
the biodiesel and the operator of the refin-
ery or terminal are registered under sec-
tion 4101.’’. 
(3) RATE OF TAX.—Subparagraph (A)(iii) of 
section 4081(a)(2) is amended by striking ‘‘diesel 
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fuel or kerosene’’ and inserting ‘‘diesel fuel, ker-
osene, or biodiesel’’. 
(4) EXEMPTIONS.— 
(A) IN GENERAL.—Section 4082 is amend-
ed by striking ‘‘diesel fuel and kerosene’’ each 
place it appears in subsections (a), (c), and (g) 
and inserting ‘‘diesel fuel, kerosene, and bio-
diesel’’. 
(B) CONFORMING AMENDMENT.—Subpara-
graph (A) of section 4082(d)(1) is amended by 
inserting ‘‘biodiesel,’’ after ‘‘diesel fuel,’’. 
(5) OTHER CONFORMING AMENDMENTS.— 
(A) The heading for paragraph (1) of sec-
tion 4041(a) is amended by striking ‘‘DIESEL 
FUEL AND KEROSENE’’ and inserting ‘‘DIESEL 
FUEL, KEROSENE, AND BIODIESEL’’. 
(B) Paragraph (2) of section 6416(b) is 
amended by striking ‘‘diesel fuel or kerosene’’ 
and inserting ‘‘diesel fuel, kerosene, or bio-
diesel’’. 
(C) Section 6427(l) is amended— 
(i) by striking ‘‘diesel fuel or ker-
osene’’ each place it appears in paragraphs 
(1) and (5)(A) and inserting ‘‘diesel fuel, 
kerosene, or biodiesel’’, 
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(ii) by striking ‘‘DIESEL FUEL AND 
KEROSENE’’ in the heading and inserting 
‘‘DIESEL
FUEL, KEROSENE, AND
BIO-
DIESEL’’, and 
(iii) by striking ‘‘DIESEL
FUEL
OR 
KEROSENE’’ in the heading of paragraph 
(5) and inserting ‘‘DIESEL
FUEL, KER-
OSENE, OR BIODIESEL’’. 
(D) Section 6715(c)(1) is amended by 
striking ‘‘diesel fuel or kerosene’’ and inserting 
‘‘diesel fuel, kerosene, or biodiesel’’. 
(6) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to biodiesel sold or 
used after December 31, 2015. 
SEC. 106. EXTENSION OF CREDITS WITH RESPECT TO FA-
CILITIES PRODUCING ENERGY FROM CER-
TAIN RENEWABLE RESOURCES. 
(a) IN GENERAL.—The following provisions of sec-
tion 45(d) are each amended by striking ‘‘January 1, 
2015’’ each place it appears and inserting ‘‘January 1, 
2017’’: 
(1) Paragraph (1). 
(2) Paragraph (2)(A). 
(3) Paragraph (3)(A). 
(4) Paragraph (4)(B). 
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(5) Paragraph (6). 
(6) Paragraph (7). 
(7) Paragraph (9). 
(8) Paragraph (11)(B). 
(b) EXTENSION OF ELECTION TO TREAT QUALIFIED 
FACILITIES AS ENERGY PROPERTY.—Clause (ii) of sec-
tion 48(a)(5)(C) is amended by striking ‘‘January 1, 
2015’’ and inserting ‘‘January 1, 2017’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall take effect on January 1, 2015. 
SEC. 107. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 
NEW HOMES. 
(a) IN GENERAL.—Subsection (g) of section 45L is 
amended by striking ‘‘December 31, 2014’’ and inserting 
‘‘December 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to homes acquired after December 
31, 2014. 
SEC. 108. EXTENSION OF SPECIAL ALLOWANCE FOR SEC-
OND GENERATION BIOFUEL PLANT PROP-
ERTY. 
(a) IN GENERAL.—Subparagraph (D) of section 
168(l)(2) is amended by striking ‘‘January 1, 2015’’ and 
inserting ‘‘January 1, 2017’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2014. 
SEC. 109. EXTENSION AND MODIFICATION OF ENERGY EF-
FICIENT COMMERCIAL BUILDINGS DEDUC-
TION. 
(a) IN GENERAL.—Subsection (h) of section 179D is 
amended by striking ‘‘December 31, 2014’’ and inserting 
‘‘December 31, 2016’’. 
(b) ALLOCATIONS
TO
INDIAN
TRIBAL
GOVERN-
MENTS.—Paragraph (4) of section 179D(d) is amended 
by striking ‘‘or local’’ and inserting ‘‘local, or Indian trib-
al’’. 
(c) ALLOCATIONS TO CERTAIN NONPROFIT ORGANI-
ZATIONS.— 
(1) IN
GENERAL.—Paragraph (4) of section 
179D(d), as amended by subsection (b), is amended 
by inserting ‘‘or by an organization that is described 
in section 501(c)(3) and exempt from tax under sec-
tion 501(a),’’ after ‘‘political subdivision thereof,’’. 
(2) CLERICAL
AMENDMENT.—The heading of 
paragraph (4) of section 179D(d) is amended by in-
serting ‘‘AND PROPERTY HELD BY CERTAIN NON- 
PROFITS’’ after ‘‘PUBLIC PROPERTY’’. 
(d) UPDATED ASHRAE STANDARDS FOR 2016.— 
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(1) IN
GENERAL.—Paragraph (1) of section 
179D(c) is amended by striking ‘‘Standard 90.1- 
2001’’ each place it appears and inserting ‘‘Stand-
ard 90.1-2007’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Paragraph (2) of section 179D(c) is 
amended to read as follows: 
‘‘(2) STANDARD 90.1-2007.—The term ‘Standard 
90.1-2007’ means Standard 90.1-2007 of the Amer-
ican Society of Heating, Refrigerating, and Air Con-
ditioning Engineers and the Illuminating Engineer-
ing Society of North America (as in effect on the 
day before the date of the adoption of Standard 
90.1-2010 of such Societies).’’. 
(B) Subsection (f) of section 179D is 
amended by striking ‘‘Standard 90.1-2001’’ 
each place it appears in paragraphs (1) and 
(2)(C)(i) and inserting ‘‘Standard 90.1-2007’’. 
(C) Paragraph (1) of section 179D(f) is 
amended— 
(i) by striking ‘‘Table 9.3.1.1’’ and in-
serting ‘‘Table 9.5.1’’, and 
(ii) by striking ‘‘Table 9.3.1.2’’ and 
inserting ‘‘Table 9.6.1’’. 
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(2) OUTLAY
PAYMENTS
FOR
ALTERNATIVE 
FUELS.—Subparagraph (C) of section 6427(e)(7), as 
redesignated by section 6(b)(3)(A)(ii), is amended by 
striking ‘‘December 31, 2014’’ and inserting ‘‘De-
cember 31, 2016’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2014. 
(c) SPECIAL RULE FOR CERTAIN PERIODS DURING 
2015.—Notwithstanding any other provision of law, in the 
case of any alternative fuel credit properly determined 
under section 6426(d) of such Code for such periods, such 
credit shall be allowed, and any refund or payment attrib-
utable to such credit (including any payment under section 
6427(e) of such Code) shall be made, only in such manner 
as the Secretary of the Treasury (or the Secretary’s dele-
gate) shall provide. Such Secretary shall issue guidance 
within 30 days after the date of the enactment of this Act 
providing for a one-time submission of claims covering pe-
riods described in the preceding sentence. Such guidance 
shall provide for a 180-day period for the submission of 
such claims (in such manner as prescribed by such Sec-
retary) to begin not later than 30 days after such guidance 
is issued. Such claims shall be paid by such Secretary not 
later than 60 days after receipt. If such Secretary has not 
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paid pursuant to a claim filed under this subsection within 
60 days after the date of the filing of such claim, the claim 
shall be paid with interest from such date determined by 
using the overpayment rate and method under section 
6621 of such Code. 
TITLE II—ADDITIONAL 
PROVISIONS 
SEC. 201. EXTENSION OF ENERGY CREDIT FOR CERTAIN 
PROPERTY UNDER CONSTRUCTION. 
(a) 
SOLAR
ENERGY
PROPERTY.—Paragraphs 
(2)(A)(i)(II) and (3)(A)(ii) of section 48(a) are each 
amended by striking ‘‘periods ending’’ and inserting 
‘‘property the construction of which begins’’. 
(b) QUALIFIED FUEL CELL PROPERTY.—Section 
48(c)(1)(D) is amended by striking ‘‘for any period after 
December 31, 2016’’ and inserting ‘‘the construction of 
which does not begin before January 1, 2017’’. 
(c) QUALIFIED MICROTURBINE PROPERTY.—Section 
48(c)(2)(D) is amended by striking ‘‘for any period after 
December 31, 2016’’ and inserting ‘‘the construction of 
which does not begin before January 1, 2017’’. 
(d) COMBINED HEAT AND POWER SYSTEM PROP-
ERTY.—Section 48(c)(3)(A)(iv) is amended by striking 
‘‘which is placed in service’’ and inserting ‘‘construction 
of which begins’’. 
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(e) QUALIFIED SMALL WIND ENERGY PROPERTY.— 
Section 48(c)(4)(C) is amended by striking ‘‘for any pe-
riod after December 31, 2016’’ and inserting ‘‘the con-
struction of which does not begin before January 1, 
2017’’. 
(f) 
THERMAL
ENERGY
PROPERTY.—Section 
48(a)(3)(A)(vii) is amended by striking ‘‘periods ending’’ 
and inserting ‘‘property the construction of which begins’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 202. MODIFICATIONS IN CREDIT FOR COMBINED HEAT 
AND POWER SYSTEM PROPERTY. 
(a) INCREASED
ENERGY
PERCENTAGE.—Section 
48(a)(2)(A)(i) is amended by striking ‘‘and’’ at the end 
of subclause (III), by redesignating subclause (IV) as sub-
clause (V), and by inserting after subclause (III) the fol-
lowing new subclause: 
‘‘(IV) energy property described 
in paragraph (3)(A)(v), and’’. 
(b) MODIFICATION OF CERTAIN CAPACITY LIMITA-
TIONS.—Section 48(c)(3)(B) is amended— 
(1) by striking ‘‘15 megawatts’’ in clause (ii) 
and inserting ‘‘25 megawatts’’, 
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(2) by striking ‘‘20,000 horsepower’’ in clause 
(ii) and inserting ‘‘34,000 horsepower’’, and 
(3) by striking clause (iii). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
SEC. 203. ENERGY CREDIT FOR WASTE HEAT TO POWER 
PROPERTY. 
(a) IN GENERAL.—Section 48(a)(3)(A) is amended 
by striking ‘‘or’’ at the end of clause (vi), by inserting 
‘‘or’’ at the end of clause (vii), and by adding at the end 
the following new clause: 
‘‘(viii) waste heat to power property,’’. 
(b) WASTE HEAT TO POWER PROPERTY.—Section 
48(c) is amended by adding at the end the following new 
paragraph: 
‘‘(5) WASTE HEAT TO POWER PROPERTY.— 
‘‘(A) WASTE
HEAT
TO
POWER
PROP-
ERTY.—The term ‘waste heat to power prop-
erty’ means property comprising a system which 
generates electricity through the recovery of a 
qualified waste heat resource. 
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‘‘(B) QUALIFIED WASTE HEAT RESOURCE 
DEFINED.—The term ‘qualified waste heat re-
source’ means— 
‘‘(i) exhaust heat or flared gas from 
any industrial process, 
‘‘(ii) waste gas or industrial tail gas 
that would otherwise be flared, incinerated, 
or vented, 
‘‘(iii) a pressure drop in any gas for 
an industrial or commercial process, or 
‘‘(iv) such other forms of waste heat 
resources as the Secretary may determine. 
‘‘(C) EXCEPTION.—The term ‘qualified 
waste heat resource’ does not include any heat 
resource from a process whose primary purpose 
is the generation of electricity utilizing a fossil 
fuel or nuclear energy. 
‘‘(D) TERMINATION.—The term ‘waste 
heat to power property’ shall not include any 
property placed in service after December 31, 
2016.’’. 
(c) INCREASED
ENERGY
PERCENTAGE.—Section 
48(a)(2)(A)(i), as amended by section 201, is amended by 
striking ‘‘and’’ at the end of subclause (IV) and by insert-
ing after subclause (V) the following new subclause: 
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‘‘(VI) energy property described 
in paragraph (3)(A)(viii), and’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
SEC. 204. INVESTMENT TAX CREDIT FOR COMMUNITY WIND 
PROJECTS HAVING GENERATION CAPACITY 
OF NOT MORE THAN 20 MEGAWATTS. 
(a) IN GENERAL.—Paragraph (4) of section 48(c) is 
amended— 
(1) by striking subparagraph (A) and inserting 
the following new subparagraph: 
‘‘(A) IN
GENERAL.—The term ‘qualified 
small wind energy property’ means— 
‘‘(i) property which uses a qualifying 
small wind turbine to generate electricity, 
or 
‘‘(ii) property which uses 1 or more 
wind turbines with an aggregate nameplate 
capacity of more than 100 kilowatts but 
not more than 20 megawatts.’’, and 
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(2) by redesignating subparagraph (C) as sub-
paragraph (D) and by inserting after subparagraph 
(B) the following new subparagraph: 
‘‘(C) REGULATIONS.—The Secretary shall 
prescribe such regulations as may be appro-
priate to prevent improper division of property 
to attempt to meet the limitation under sub-
paragraph (A)(ii).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 205. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 
OWNERSHIP STRUCTURE TO ENERGY POWER 
GENERATION PROJECTS, TRANSPORTATION 
FUELS, AND RELATED ENERGY ACTIVITIES. 
(a) IN GENERAL.—Subparagraph (E) of section 
7704(d)(1) is amended— 
(1) by striking ‘‘income and gains derived from 
the exploration’’ and inserting ‘‘income and gains 
derived from the following: 
‘‘(i) 
MINERALS, 
NATURAL
RE-
SOURCES, ETC.—The exploration’’, 
(2) 
by 
inserting 
‘‘or’’ 
before 
‘‘industrial 
source’’, 
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(3) by inserting a period after ‘‘carbon diox-
ide’’, and 
(4) by striking ‘‘, or the transportation or stor-
age’’ and all that follows and inserting the following: 
‘‘(ii) RENEWABLE ENERGY.—The gen-
eration of electric power (including the 
leasing of tangible personal property used 
for such generation) exclusively utilizing 
any resource described in section 45(c)(1) 
or energy property described in section 48 
(determined without regard to any termi-
nation date), or in the case of a facility de-
scribed in paragraph (3) or (7) of section 
45(d) (determined without regard to any 
placed in service date or date by which 
construction of the facility is required to 
begin), the accepting or processing of such 
resource. 
‘‘(iii) 
ELECTRICITY
STORAGE
DE-
VICES.—The receipt and sale of electric 
power that has been stored in a device di-
rectly connected to the grid.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act, in taxable years ending after such date. 
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SEC. 206. ADDITIONAL ADVANCED ENERGY MANUFAC-
TURING CREDIT ALLOCATIONS. 
(a) ADDITIONAL ALLOCATION OF CREDITS.—Section 
48C(d) is amended by adding at the end the following: 
‘‘(6) ADDITIONAL ALLOCATION.— 
‘‘(A) IN GENERAL.—In addition to credits 
allocated under paragraph (1), the Secretary, in 
consultation with the Secretary of Energy, is 
authorized to conduct an additional program to 
consider and award certifications for qualified 
investments eligible for credits under this sec-
tion to qualifying advanced energy project spon-
sors pursuant to applications from such spon-
sors received after December 31, 2015. 
‘‘(B) LIMITATION.—The total amount of 
credits that may be allocated under subpara-
graph (A) shall not exceed $2,700,000,000. 
‘‘(C) 
MODIFICATIONS
TO
APPLICABLE 
RULES.—For purposes of this paragraph— 
‘‘(i) APPLICATION
PERIOD.—The 2- 
year period described in paragraph (2) 
shall begin on January 1, 2016. 
‘‘(ii) REALLOCATION.—The 4-year pe-
riod described in paragraph (4) shall begin 
the date of the enactment of this para-
graph.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to periods beginning after De-
cember 31, 2015. 
TITLE III—ENDING OIL AND GAS 
TAX SUBSIDIES 
SEC. 301. AMORTIZATION OF GEOLOGICAL AND GEO-
PHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Section 167(h) is amended— 
(1) by striking ‘‘24-month period’’ in paragraph 
(1) and inserting ‘‘7-year period’’, and 
(2) by striking paragraph (5). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2015. 
SEC. 302. PRODUCING OIL AND GAS FROM MARGINAL 
WELLS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by striking section 45I 
(and by striking the item relating to such section in the 
table of sections for such subpart). 
(b) CONFORMING AMENDMENT.—Section 38(b) is 
amended by striking paragraph (19). 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to credits determined for taxable 
years beginning after December 31, 2015. 
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SEC. 303. ENHANCED OIL RECOVERY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by striking section 43 
(and by striking the item relating to such section in the 
table of sections for such subpart). 
(b) CONFORMING AMENDMENT.—Section 38(b) is 
amended by striking paragraph (6). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2015. 
SEC. 304. INTANGIBLE DRILLING AND DEVELOPMENT 
COSTS IN THE CASE OF OIL AND GAS WELLS. 
(a) IN GENERAL.—Subsection (c) of section 263 is 
amended by adding at the end the following new sentence: 
‘‘This subsection shall not apply to amounts paid or in-
curred by a taxpayer with respect to an oil or gas well 
after December 31, 2015.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2015. 
SEC. 305. REPEAL OF PERCENTAGE DEPLETION FOR OIL 
AND GAS WELLS. 
(a) IN GENERAL.—Part I of subchapter I of chapter 
1 is amended by striking section 613A (and the table of 
sections of such part is amended by striking the item relat-
ing to such section). 
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(b) CONFORMING AMENDMENTS.— 
(1) Subsection (d) of section 45H is amended— 
(A) by striking ‘‘For purposes this section’’ 
and inserting the following: 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion’’, 
(B) by striking ‘‘(within the meaning of 
section 613A(d)(3))’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) RELATED PERSON.—For purposes of this 
subsection, a person is a related person with respect 
to the taxpayer if a significant ownership interest in 
either the taxpayer or such person is held by the 
other, or if a third person has a significant owner-
ship interest in both the taxpayer and such person. 
For purposes of the preceding sentence, the term 
‘significant ownership interest’ means— 
‘‘(A) with respect to any corporation, 5 
percent or more in value of the outstanding 
stock of such corporation, 
‘‘(B) with respect to a partnership, 5 per-
cent or more interest in the profits or capital of 
such partnership, and 
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‘‘(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 56(g)(4)(F) is amended to read as 
follows: 
‘‘(F) DEPLETION.—The allowance for de-
pletion with respect to any property placed in 
service in a taxable year beginning after De-
cember 31, 1989, shall be cost depletion deter-
mined under section 611.’’. 
(3) Section 57(a)(1) is amended by striking the 
last sentence. 
(4) Section 291(b)(4) is amended by adding at 
the end the following: ‘‘Any reference in the pre-
ceding 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 Bridge to a Clean En-
ergy Future Act of 2015.’’. 
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(5) Section 613(d) is amended by striking ‘‘Ex-
cept as provided in section 613A, in the case of’’ and 
inserting ‘‘In the case of’’. 
(6) Section 613(e) 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-
serting ‘‘any lease bonus, advance royalty, or 
other amount payable without regard to produc-
tion from property’’. 
(7) Section 705(a) 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). 
(8) Section 776 is amended by striking sub-
section (a) and by redesignating subsection (b) as 
subsection (a). 
(9) Section 954(g)(2)(D) is amended by insert-
ing ‘‘(as in effect before the date of the enactment 
of the Bridge to a Clean Energy Future Act of 
2015)’’ after ‘‘section 613A’’. 
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(10) Section 993(c)(2)(C) is amended by strik-
ing ‘‘section 613 or 613A’’ and inserting ‘‘section 
613 (determined without regard to subsection (d) 
thereof)’’. 
(11) Section 1202(e)(3)(D) is amended by 
striking ‘‘section 613 or 613A’’ and inserting ‘‘sec-
tion 613 (determined without regard to subsection 
(d) thereof)’’. 
(12) Section 1367(a)(2) is amended by insert-
ing ‘‘and’’ at the end of subparagraph (C), by strik-
ing ‘‘, and’’ at the end of subparagraph (D) and in-
serting a period, and by striking subparagraph (E). 
(13) Section 1446(c) is amended by striking 
paragraph (2) and by redesignating paragraph (3) 
as paragraph (2). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2015. 
SEC. 
306. 
REPEAL 
OF 
DEDUCTION 
FOR 
TERTIARY 
INJECTANTS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 is amended by striking section 193 (and the table 
of sections of such subpart is amended by striking the item 
relating to such section). 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 307. REPEAL OF EXCEPTION TO PASSIVE LOSS LIMITA-
TIONS FOR WORKING INTERESTS IN OIL AND 
GAS PROPERTIES. 
(a) IN GENERAL.—Section 469(c)(3) 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.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 308. DEDUCTION FOR INCOME ATTRIBUTABLE TO DO-
MESTIC PRODUCTION ACTIVITIES NOT AL-
LOWED WITH RESPECT TO OIL AND GAS AC-
TIVITIES. 
(a) IN GENERAL.—Section 199(c)(4)(B) is amended 
by striking ‘‘and’’ at the end of clause (ii), by striking 
the period at the end of clause (iii) and inserting ‘‘, and’’, 
and by inserting after clause (iii) the following new clause: 
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‘‘(iv) the production, refining, proc-
essing, transportation, or distribution of 
oil, gas, or any primary product thereof.’’. 
(b) CONFORMING AMENDMENT.—Section 199(d) is 
amended by striking paragraph (9) and by redesignating 
paragraph (10) as paragraph (9). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2015. 
SEC. 309. PROHIBITION ON USING LAST-IN, FIRST-OUT AC-
COUNTING FOR OIL AND GAS COMPANIES. 
(a) IN GENERAL.—Section 472 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-
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, 
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‘‘(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. 
‘‘(ii) SHORT TAXABLE YEARS.—In the 
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. 
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‘‘(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, 
‘‘(II) with respect to a partner-
ship, 15 percent or more interest in 
the profits or capital of such partner-
ship, and 
‘‘(III) with respect to an estate 
or trust, 15 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 
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for a corporation, partnership, trust, or es-
tate shall be considered as owned directly 
both by itself and proportionately by its 
shareholders, partners, or beneficiaries, as 
the case may be.’’. 
(b) EFFECTIVE DATE AND SPECIAL RULE.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall apply to taxable years beginning 
after December 31, 2015. 
(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 the 
date of the enactment of this Act— 
(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 
(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. 
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SEC. 310. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
APPLICABLE TO DUAL CAPACITY TAXPAYERS. 
(a) IN GENERAL.—Section 901 is amended by redes-
ignating subsection (n) as subsection (o) and by inserting 
after subsection (m) the following new subsection: 
‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY 
TAXPAYERS.— 
‘‘(1) GENERAL
RULE.—Notwithstanding any 
other provision of this chapter, any amount paid or 
accrued by a dual capacity taxpayer to a foreign 
country or possession of the United States for any 
period with respect to combined foreign oil and gas 
income (as defined in section 907(b)(1)) shall not be 
considered a tax to the extent such amount exceeds 
the amount (determined in accordance with regula-
tions) which would have been required to be paid if 
the taxpayer were not a dual capacity taxpayer. 
‘‘(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-
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mined in accordance with regulations) from 
such country or possession.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxes paid or accrued in 
taxable years beginning after December 31, 2015. 
(2) 
CONTRARY
TREATY
OBLIGATIONS 
UPHELD.—The amendments made by this section 
shall not apply to the extent contrary to any treaty 
obligation of the United States. 
Æ 
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