I 
117TH CONGRESS 
1ST SESSION H. R. 2184 
To amend the Internal Revenue Code of 1986 to repeal fossil fuel subsidies 
for oil companies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 26, 2021 
Mr. BLUMENAUER (for himself, Mr. CASTEN, Mr. MCEACHIN, and Ms. POR-
TER) 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 
fossil fuel subsidies for oil companies, and for other purposes. 
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 ‘‘End Oil and Gas Tax 
Subsidies Act of 2021’’. 
SEC. 
2. 
AMORTIZATION 
OF 
GEOLOGICAL 
AND 
GEO-
PHYSICAL EXPENDITURES. 
(a) IN GENERAL.—Section 167(h) of the Internal 
Revenue Code of 1986 is amended— 
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(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, 2020. 
SEC. 3. PRODUCING OIL AND GAS FROM MARGINAL WELLS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 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) of 
such Code 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, 2020. 
SEC. 4. ENHANCED OIL RECOVERY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 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) of 
such Code is amended by striking paragraph (6). 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2020. 
SEC. 5. INTANGIBLE DRILLING AND DEVELOPMENT COSTS 
IN THE CASE OF OIL AND GAS WELLS. 
(a) IN GENERAL.—Subsection (c) of section 263 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new sentence: ‘‘This subsection 
shall not apply to amounts paid or incurred by a taxpayer 
with respect to an oil or gas well after December 31, 
2020.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2020. 
SEC. 6. REPEAL OF PERCENTAGE DEPLETION FOR OIL AND 
GAS WELLS. 
(a) IN GENERAL.—Part I of subchapter I of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
striking section 613A (and the table of sections of such 
part is amended by striking the item relating to such sec-
tion). 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (d) of section 45H of such Code 
is amended— 
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(A) by striking ‘‘For purposes of this sec-
tion’’ 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 
‘‘(C) with respect to an estate or trust, 5 
percent or more of the beneficial interests in 
such estate or trust. 
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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 End Oil 
and Gas Tax Subsidies Act of 2021.’’. 
(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-
serting ‘‘any lease bonus, advance royalty, or 
other amount payable without regard to produc-
tion from property’’. 
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(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). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2020. 
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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, 2020. 
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-
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-
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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. 
‘‘(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)— 
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‘‘(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, 
‘‘(II) with respect to a partner-
ship, 15 percent or more interest in 
the profits or capital of such partner-
ship, and 
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‘‘(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 
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, 2020. 
(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 
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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. 
SEC. 11. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
APPLICABLE TO DUAL CAPACITY TAXPAYERS. 
(a) IN GENERAL.—Section 901 of the Internal Rev-
enue Code of 1986 is amended by redesignating 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. 
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‘‘(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.’’. 
(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, 2020. 
(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. 
SEC. 12. CLARIFICATION OF TAR SANDS AS CRUDE OIL FOR 
EXCISE TAX PURPOSES. 
(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.—The term ‘crude oil’ includes 
crude oil condensates, natural gasoline, any bitumen 
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or bituminous mixture, any oil derived from a bitu-
men or bituminous mixture (including oil derived 
from tar sands), and any oil derived from kerogen- 
bearing sources (including oil derived from oil 
shale).’’. 
(b) REGULATORY AUTHORITY TO ADDRESS OTHER 
TYPES OF CRUDE OIL AND PETROLEUM PRODUCTS.— 
Subsection (a) of section 4612 of such Code is amended 
by adding at the end the following new paragraph: 
‘‘(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 
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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 such Code is amended by striking ‘‘from 
a well located’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
Æ 
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