In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Ex Input:
16, 110th Congress, agreed 
    to in the Senate March 1, 2007, and House Concurrent Resolution 80, 
    110th Congress, agreed to in the House of Representatives June 18, 
    2007.
SEC. 4. REQUIREMENT OF A STRATEGY TO SUPPORT THE DISARMAMENT OF THE 
LORD'S RESISTANCE ARMY.
    (a) Requirement for Strategy.--Not later than 180 days after the 
date of the enactment of this Act, the President shall develop and 
submit to the appropriate committees of Congress a strategy to guide 
future United States support across the region for viable multilateral 
efforts to mitigate and eliminate the threat to civilians and regional 
stability posed by the Lord's Resistance Army.
    (b) Content of Strategy.--The strategy shall include the following:
        (1) A plan to help strengthen efforts by the United Nations and 
    regional governments to protect civilians from attacks by the 
    Lord's Resistance Army while supporting the development of 
    institutions in affected areas that can help to maintain the rule 
    of law and prevent conflict in the long term.
        (2) An assessment of viable options through which the United 
    States, working with regional governments, could help develop and 
    support multilateral efforts to eliminate the threat posed by the 
    Lord's Resistance Army.
        (3) An interagency framework to plan, coordinate, and review 
    diplomatic, economic, intelligence, and military elements of United 
    States policy across the region regarding the Lord's Resistance 
    Army.
        (4) A description of the type and form of diplomatic engagement 
    across the region undertaken to coordinate and implement United 
    States policy regarding the Lord's Resistance Army and to work 
    multilaterally with regional mechanisms, including the Tripartite 
    Plus Commission and the Great Lakes Pact.
        (5) A description of how this engagement will fit within the 
    context of broader efforts and policy objectives in the Great Lakes 
    Region.
    (c) Form.--The strategy under this section shall be submitted in 
unclassified form, but may include a classified annex.
SEC. 5. HUMANITARIAN ASSISTANCE FOR AREAS OUTSIDE UGANDA AFFECTED BY 
THE LORD'S RESISTANCE ARMY.
    In accordance with section 491 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2292) and section 2 of the Migration and Refugee 
Assistance Act of 1962 (22 U.S.C. 2601), the President is authorized to 
provide additional assistance to the Democratic Republic of Congo, 
southern Sudan, and Central African Republic to respond to the 
humanitarian needs of populations directly affected by the activity of 
the Lord's Resistance Army.
SEC. 6. ASSISTANCE FOR RECOVERY AND RECONSTRUCTION IN NORTHERN UGANDA.
    (a) Authority.--It is the sense of Congress that the President 
should support efforts by the people of northern Uganda and the 
Government of Uganda--
        (1) to assist internally displaced people in transition and 
    returnees to secure durable solutions by spurring economic 
    revitalization, supporting livelihoods, helping to alleviate 
    poverty, and advancing access to basic services at return sites, 
    specifically clean water, health care, and schools;
        (2) to enhance the accountability and administrative competency 
    of local governance institutions and public agencies in northern 
    Uganda with regard to budget management, provision of public goods 
    and services, and related oversight functions;
        (3) to strengthen the operational capacity of the civilian 
    police in northern Uganda to enhance public safety, prevent crime, 
    and deal sensitively with gender-based violence, while 
    strengthening accountability measures to prevent corruption and 
    abuses;
        (4) to rebuild and improve the capacity of the justice system 
    in northern Uganda, including the courts and penal systems, with 
    particular sensitivity to the needs and rights of women and 
    children;
        (5) to establish mechanisms for the disarmament, 
    demobilization, and reintegration of former combatants and those 
    abducted by the LRA, including vocational education and employment 
    opportunities, with attention given to the roles and needs of men, 
    women and children; and
        (6) to promote programs to address psychosocial trauma, 
    particularly post-traumatic stress disorder.
    (b) Future Year Funding.--It is the sense of Congress that the 
Secretary of State and Administrator of the United States Agency for 
International Development should work with the appropriate committees 
of Congress to increase assistance in future fiscal years to support 
activities described in this section if the Government of Uganda 
demonstrates a commitment to transparent and accountable reconstruction 
in war-affected areas of northern Uganda, specifically by--
        (1) finalizing the establishment of mechanisms within the 
    Office of the Prime Minister to sufficiently manage and coordinate 
    the programs under the framework of the Peace Recovery and 
    Development Plan for Northern Uganda (PRDP);
        (2) increasing oversight activities and reporting, at the local 
    and national level in Uganda, to ensure funds under the Peace 
    Recovery and Development Plan for Northern Uganda framework are 
    used efficiently and with minimal waste; and
        (3) committing substantial funds of its own, above and beyond 
    standard budget allocations to local governments, to the task of 
    implementing the Peace Recovery and Development Plan for Northern 
    Uganda such that communities affected by the war can recover.
    (c) Coordination With Other Donor Nations.--The United States 
should work with other donor nations to increase contributions for 
recovery efforts in northern Uganda and better leverage those 
contributions to enhance the capacity and encourage the leadership of 
the Government of Uganda in promoting transparent and accountable 
reconstruction in northern Uganda.
    (d) Termination of Assistance.--It is the sense of Congress that 
the Secretary of State should withhold non-humanitarian bilateral 
assistance to the Republic of Uganda if the Secretary determines that 
the Government of Uganda is not committed to reconstruction and 
reconciliation in the war-affected areas of northern Uganda and is not 
taking proactive steps to ensure this process moves forward in a 
transparent and accountable manner.
SEC. 7. ASSISTANCE FOR RECONCILIATION AND TRANSITIONAL JUSTICE IN 
NORTHERN UGANDA.
    (a) Sense of Congress.--It is the sense of Congress that, despite 
reconstruction and development efforts, a continued failure to take 
meaningful steps toward national reconciliation and accountability 
risks perpetuating longstanding political grievances and fueling new 
conflicts.
    (b) Authority.--In accordance with section 531 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2346), the President is authorized to 
support efforts by the people of northern Uganda and the Government of 
Uganda to advance efforts to promote transitional justice and 
reconciliation on both local and national levels, including to 
encourage implementation of the mechanisms outlined in the Annexure to 
the Agreement on Accountability and Reconciliation between the 
Government of Uganda and the Lord's Resistance Army/Movement, signed at 
Juba February 19, 2008, namely--
        (1) a body to investigate the history of the conflict, inquire 
    into human rights violations committed during the conflict by all 
    sides, promote truth-telling in communities, and encourage the 
    preservation of the memory of events and victims of the conflict 
    through memorials, archives, commemorations, and other forms of 
    preservation;
        (2) a special division of the High Court of Uganda to try 
    individuals alleged to have committed serious crimes during the 
    conflict, and a special unit to carry out investigations and 
    prosecutions in support of trials;
        (3) a system for making reparations to victims of the conflict; 
    and
        (4) a review and strategy for supporting transitional justice 
    mechanisms in affected areas to promote reconciliation and 
    encourage individuals to take personal responsibility for their 
    conduct during the war.
SEC. 8. REPORT.
    (a) Report Required.--Not later than 1 year after the submission of 
the strategy required under section 4, the Secretary of State shall 
prepare and submit to the appropriate committees of Congress a report 
on the progress made toward the implementation of the strategy required 
under section 4 and a description and evaluation of the assistance 
provided under this Act toward the policy objectives described in 
section 3.
    (b) Contents.--The report required under section (a) shall 
include--
        (1) a description and evaluation of actions taken toward the 
    implementation of the strategy required under section 4;
        (2) a description of assistance provided under sections 5, 6, 
    and 7;
        (3) an evaluation of bilateral assistance provided to the 
    Republic of Uganda and associated programs in light of stated 
    policy objectives;
        (4) a description of the status of the Peace Recovery and 
    Development Plan for Northern Uganda and the progress of the 
    Government of Uganda in fulfilling the steps outlined in section 
    6(b); and
        (5) a description of amounts of assistance committed, and 
    amounts provided, to northern Uganda during the reporting period by 
    the Government of Uganda and each donor country.
    (c) Form.--The report under this section shall be submitted in 
unclassified form, but may include a classified annex.
SEC. 9. SENSE OF CONGRESS ON FUNDING.
    It is the sense of Congress that--
        (1) of the total amounts to be appropriated for fiscal year 
    2011 for the Department of State and foreign operations, up to 
    $10,000,000 should be used to carry out activities under section 5; 
    and
        (2) of the total amounts to be appropriated for fiscal year 
    2011 through 2013 for the Department of State and foreign 
    operations, up to $10,000,000 in each such fiscal year should be 
    used to carry out activities under section 7.
  SEC. 10. DEFINITIONS.
    In this Act:
        (1) Appropriate committees of congress.--The term ``appropriate 
    committees of Congress'' means the Committee on Appropriations and 
    the Committee on Foreign Relations of the Senate and the Committee 
    on Appropriations and the Committee on Foreign Affairs of the House 
    of Representatives.
        (2) Great lakes region.--The term ``Great Lakes Region'' means 
    the region comprising Burundi, Democratic Republic of Congo, 
    Rwanda, southern Sudan, and Uganda.
        (3) LRA-affected areas.--The term ``LRA-affected areas'' means 
    those portions of northern Uganda, southern Sudan, northeastern 
    Democratic Republic of Congo, and southeastern Central African 
    Republic determined by the Secretary of State to be affected by the 
    Lord's Resistance Army as of the date of the enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Ex Output:
Lord's Resistance Army Disarmament and Northern Uganda Recovery Act of 2009 - (Sec. 4) Directs the President to submit to Congress a regional strategy to guide U.S. support for multilateral efforts to eliminate the threat to civilians and regional stability posed by the Lord's Resistance Army (LRA). Requires the strategy to include: (1) a plan to help strengthen efforts by the United Nations (U.N.) and regional governments to protect civilians from attacks by the LRA; (2) an assessment of viable options through which the United States could help develop and support multilateral efforts to eliminate the threat posed by the LRA; (3) an interagency framework to plan, coordinate, and review diplomatic, economic, intelligence, and military elements of U.S. policy across the region regarding the LRA; (4) a description of the type and form of diplomatic engagement across the region undertaken to coordinate and implement U.S. policy regarding the LRA and to work multilaterally with regional mechanisms, including the Tripartite Plus Commission and the Great Lakes Pact; and (5) a description of how this engagement will fit within the context of broader efforts and policy objectives in the Great Lakes Region.

(Sec. 5) Authorizes the President to provide additional assistance to respond to the humanitarian needs of populations the Democratic Republic of Congo, southern Sudan, and Central African Republic affected by LRA activity.

(Sec. 6) Expresses the sense of Congress that the President should support efforts by the people of northern Uganda and the government of Uganda to: (1) assist internally displaced people in transition and returnees by spurring economic revitalization and advancing access to basic services at return sites; (2) enhance the accountability and administrative competency of local governance institutions and public agencies in northern Uganda; (3) strengthen the operational capacity of the civilian police and the justice system in northern Uganda; (4) establish mechanisms for the disarmament and reintegration of former combatants and those abducted by the LRA; and (5) promote programs to address psychosocial trauma.

Expresses the sense of Congress that: (1) the Secretary of State and the Administrator of the United States Agency for International Development (USAID) should work with Congress to increase future assistance to Uganda if the government of Uganda demonstrates a commitment to reconstruction in war-affected areas of northern Uganda; and (2) the Secretary should withhold non-humanitarian assistance to Uganda if the government of Uganda is not committed to reconstruction and reconciliation in the war-affected areas of northern Uganda and is not taking steps to ensure this process moves forward in a transparent and accountable manner.

(Sec. 7) Expresses the sense of Congress that a continued failure to take meaningful steps toward national reconciliation and accountability risks perpetuating political grievances and fueling new conflicts.

Authorizes the President to support efforts by the people of northern Uganda and the government of Uganda to promote transitional justice and reconciliation on both local and national levels, including to encourage implementation of the mechanisms in the Annexure to the Agreement on Accountability and Reconciliation between the government of Uganda and the LRA.

(Sec. 8) Directs the Secretary to report to Congress on implementation of the strategy and evaluation of the assistance under this Act.

(Sec. 9) Expresses the sense of Congress that: (1) of the total amounts to be appropriated for FY2011 for the Department of State and foreign operations, up to $10 million should be used to carry out activities under section 5; and (2) of the total amounts to be appropriated for FY2011-FY2013 for the Department of State and foreign operations, up to $10 million in each such fiscal year should be used to carry out activities under section 7.

(Sec. 10) Defines: (1) "Great Lakes Region" as the region comprising Burundi, Democratic Republic of Congo, Rwanda, southern Sudan, and Uganda; and (2) "LRA-affected areas" as those portions of northern Uganda, southern Sudan, northeastern Democratic Republic of Congo, and southeastern Central African Republic affected by the LRA.


Ex Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tuition Assistance for Families 
Act''.

SEC. 2. EXPANSION OF TUITION TAX DEDUCTION.

    (a) In General.--Subparagraphs (A) and (B) of section 222(b)(2) of 
the Internal Revenue Code of 1986 (relating to dollar limitation) are 
amended to read as follows:
                    ``(A) In general.--The applicable dollar limit 
                shall be equal to--
                            ``(i) in the case of a taxpayer whose 
                        adjusted gross income for the taxable year does 
                        not exceed $65,000 ($130,000 in the case of a 
                        joint return), $12,000,
                            ``(ii) with respect to any taxable year 
                        beginning in 2004 or 2005, in the case of a 
                        taxpayer not described in clause (i) whose 
                        adjusted gross income for the taxable year does 
                        not exceed $80,000 ($160,000 in the case of a 
                        joint return), $2,000, and
                            ``(iii) in the case of any other taxpayer, 
                        zero.
                    ``(B) Inflation adjustment.--
                            ``(i) In general.--In the case of any 
                        taxable year beginning after 2003, each dollar 
                        amount referred to in subparagraph (A)(i) shall 
                        be increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                (1)(f)(3) for the calendar year in 
                                which the taxable year begins, by 
                                substituting `2002' for `1992'.
                            ``(ii) Rounding.--If any amount as adjusted 
                        under clause (i) is not a multiple of $100, 
                        such amount shall be rounded to the next lowest 
                        multiple of $100.''.
    (b) Permanent Deduction.--Section 222 of the Internal Revenue Code 
of 1986 (relating to qualified tuition and related expenses) is amended 
by striking subsection (e).
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2002.

SEC. 3. EXPANSION OF LIFETIME LEARNING CREDIT.

    (a) In General.--Section 25A(c)(1) of the Internal Revenue Code of 
1986 (relating to per taxpayer credit) is amended--
            (1) by striking ``20 percent'' and inserting ``25 
        percent'', and
            (2) by striking ``$10,000 ($5,000 in the case of taxable 
        years beginning before January 1, 2003)'' and inserting 
        ``$12,000''.
    (b) Inflation Adjustment.--Section 25A(h) of the Internal Revenue 
Code of 1986 (relating to inflation adjustments) is amended by adding 
at the end the following new paragraph:
            ``(3) Dollar limitation on amount of lifetime learning 
        credit.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2003, the dollar amount referred to in 
                subsection (c)(1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section (1)(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting `2002' for `1992'.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $100, such amount 
                shall be rounded to the next lowest multiple of 
                $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2002.

SEC. 4. INCREASE IN INCOME LIMITS FOR HOPE AND LIFETIME LEARNING 
              CREDITS.

    (a) In General.--Section 25A(d)(2)(A)(ii) of the Internal Revenue 
Code of 1986 (relating to limitation based on modified adjusted gross 
income) is amended by striking ``$40,000 ($80,000'' and inserting 
``$55,000 ($110,000''.
    (b) Conforming Amendments.--Section 25A(h)(2)(A) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``2001'' in the matter preceding clause (i) 
        and inserting ``2003'',
            (2) by striking ``the $40,000 and $80,000 amounts'' in such 
        matter and inserting ``the $55,000 and $110,000 amounts'', and
            (3) by striking ``2000'' in clause (ii) and inserting 
        ``2002''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2002.

SEC. 5. MAXIMUM PELL GRANT AWARDS.

    The Department of Education Appropriations Act, 2002 (Public Law 
107-116) is amended under the heading ``Student Financial Assistance'' 
by striking ``$4,000'' and inserting ``$4,500''.

SEC. 6. ACADEMIC ACHIEVEMENT SCHOLARSHIPS.

    (a) Scholarships.--The Secretary of Education is authorized to 
award a scholarship for academic year 2003-2004 and succeeding academic 
years to each student in a State who graduated in the top 5 percent of 
such student's graduating class from secondary school in academic year 
2002-2003 or a succeeding academic year to enable such student to pay 
the cost of attendance at an institution of higher education.
    (b) Amount.--Each scholarship awarded under this section shall be 
in the amount of $1,000.
    (c) Use.--Each student awarded a scholarship under this section 
shall use the funds to pay the cost of attendance at an institution of 
higher education.
    (d) Construction of Needs Provision.--
            (1) In general.--Except as provided in paragraph (2), 
        nothing in this section, or any other Act, shall be construed 
        to permit the receipt of a scholarship under this section to be 
        counted for any needs test in connection with the awarding of 
        any grant or the making of any loan under the Higher Education 
        Act of 1965 (20 U.S.C. 1001 et seq.) or any other provision of 
        Federal law relating to educational assistance.
            (2) Exception.--In determining the need of a student for 
        Federal financial assistance, an institution of higher 
        education may take into consideration the amount of scholarship 
        assistance received under this section if the total amount of 
        scholarship assistance received under this section plus the 
        amount of other financial assistance available to a student 
        exceeds the student's cost of attendance at the institution.
    (e) Regulations.--The Secretary of Education shall promulgate 
regulations regarding how scholarships awarded under this section will 
be allocated to both public and private school students.
    (f) Definitions.--In this section:
            (1) Cost of attendance.--The term `cost of attendance' has 
        the meaning given the term in section 472 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087ll).
            (2) Institution of higher education.--The term `institution 
        of higher education' has the meaning given the term in section 
        101 of the Higher Education Act of 1965 (20 U.S.C. 1001).

Ex Output:
Tuition Assistance for Families Act - Amends the Internal Revenue Code to expand the tax deduction for qualified higher education tuition and related expenses. Sets such deduction at: (1) $12,000 for those with incomes up to $65,000 single or $130,000 joint; and (2) $2,000 for those whose incomes are above that level, but not more than $80,000 single or $160,000 joint. Provides inflation adjustment. Makes such tuition deduction permanent.Increases the amount of the Lifetime Learning tax credit percentage from 20 to 25 percent. Increases the amount of education expenses subject to such credit from $10,000 to $12,000 (thus making the maximum allowable credit $3,000, rather than the current $2,000). Provides inflation adjustment.Raises annual income limits for the Hope and Lifetime Learning tax credits to $55,000 single and $110,000 joint.Amends the Department of Education Appropriations Act, 2002 (Public Law 107-116) to increase the maximum Pell Grant award from $4,000 to $4,500.Establishes an academic achievement scholarship program. Authorizes the Secretary of Education to award a $1,000 college scholarship to each student in a State who graduates in the top five percent of his or her secondary school's graduating class.


Ex Input:
SECTION 1. TAX CREDIT FOR MARGINAL DOMESTIC OIL AND NATURAL GAS WELL 
              PRODUCTION.

    (a) Purpose.--The purpose of this section is to prevent the 
abandonment of marginal oil and gas wells responsible for half of the 
domestic production of oil and gas in the United States.
    (b) Credit for Producing Oil and Gas From Marginal Wells.--Subpart 
D of part IV of subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to business credits) is amended by adding at the end 
the following new section:

``SEC. 45G. CREDIT FOR PRODUCING OIL AND GAS FROM MARGINAL WELLS.

    ``(a) General Rule.--For purposes of section 38, the marginal well 
production credit for any taxable year is an amount equal to the 
product of--
            ``(1) the credit amount, and
            ``(2) the qualified crude oil production and the qualified 
        natural gas production which is attributable to the taxpayer.
    ``(b) Credit Amount.--For purposes of this section--
            ``(1) In general.--The credit amount is--
                    ``(A) $3 per barrel of qualified crude oil 
                production, and
                    ``(B) 50 cents per 1,000 cubic feet of qualified 
                natural gas production.
            ``(2) Reduction as oil and gas prices increase.--
                    ``(A) In general.--The $3 and 50 cents amounts 
                under paragraph (1) shall each be reduced (but not 
                below zero) by an amount which bears the same ratio to 
                such amount (determined without regard to this 
                paragraph) as--
                            ``(i) the excess (if any) of the applicable 
                        reference price over $15 ($1.67 for qualified 
                        natural gas production), bears to
                            ``(ii) $3 ($0.33 for qualified natural gas 
                        production).
                The applicable reference price for a taxable year is 
                the reference price for the calendar year preceding the 
                calendar year in which the taxable year begins.
                    ``(B) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2002, 
                each of the dollar amounts contained in subparagraph 
                (A) shall be increased to an amount equal to such 
                dollar amount multiplied by the inflation adjustment 
                factor for such calendar year (determined under section 
                43(b)(3)(B) by substituting `2001' for `1990').
                    ``(C) Reference price.--For purposes of this 
                paragraph, the term `reference price' means, with 
                respect to any calendar year--
                            ``(i) in the case of qualified crude oil 
                        production, the reference price determined 
                        under section 29(d)(2)(C), and
                            ``(ii) in the case of qualified natural gas 
                        production, the Secretary's estimate of the 
                        annual average wellhead price per 1,000 cubic 
                        feet for all domestic natural gas.
    ``(c) Qualified Crude Oil and Natural Gas Production.--For purposes 
of this section--
            ``(1) In general.--The terms `qualified crude oil 
        production' and `qualified natural gas production' mean 
        domestic crude oil or natural gas which is produced from a 
        marginal well.
            ``(2) Limitation on amount of production which may 
        qualify.--
                    ``(A) In general.--Crude oil or natural gas 
                produced during any taxable year from any well shall 
                not be treated as qualified crude oil production or 
                qualified natural gas production to the extent 
                production from the well during the taxable year 
                exceeds 1,095 barrels or barrel equivalents.
                    ``(B) Proportionate reductions.--
                            ``(i) Short taxable years.--In the case of 
                        a short taxable year, the limitations under 
                        this paragraph shall be proportionately reduced 
                        to reflect the ratio which the number of days 
                        in such taxable year bears to 365.
                            ``(ii) Wells not in production entire 
                        year.--In the case of a well which is not 
                        capable of production during each day of a 
                        taxable year, the limitations under this 
                        paragraph applicable to the well shall be 
                        proportionately reduced to reflect the ratio 
                        which the number of days of production bears to 
                        the total number of days in the taxable year.
            ``(3) Definitions.--
                    ``(A) Marginal well.--The term `marginal well' 
                means a domestic well--
                            ``(i) the production from which during the 
                        taxable year is treated as marginal production 
                        under section 613A(c)(6), except that `22 
                        degrees' shall be substituted for `20 degrees' 
                        in applying subparagraph (F) thereof, or
                            ``(ii) which, during the taxable year--
                                    ``(I) has average daily production 
                                of not more than 25 barrel equivalents, 
                                and
                                    ``(II) produces water at a rate not 
                                less than 95 percent of total well 
                                effluent.
                    ``(B) Crude oil, etc.--The terms `crude oil', 
                `natural gas', `domestic', and `barrel' have the 
                meanings given such terms by section 613A(e).
                    ``(C) Barrel equivalent.--The term `barrel 
                equivalent' means, with respect to natural gas, a 
                conversion ratio of 6,000 cubic feet of natural gas to 
                1 barrel of crude oil.
    ``(d) Other Rules.--
            ``(1) Production attributable to the taxpayer.--In the case 
        of a marginal well in which there is more than one owner of 
        operating interests in the well and the crude oil or natural 
        gas production exceeds the limitation under subsection (c)(2), 
        qualifying crude oil production or qualifying natural gas 
        production attributable to the taxpayer shall be determined on 
        the basis of the ratio which the taxpayer's revenue interest in 
        the production bears to the aggregate of the revenue interests 
        of all operating interest owners in the production.
            ``(2) Operating interest required.--Any credit under this 
        section may be claimed only on production which is attributable 
        to the holder of an operating interest.
            ``(3) Production from nonconventional sources excluded.--In 
        the case of production from a marginal well which is eligible 
        for the credit allowed under section 29 for the taxable year, 
        no credit shall be allowable under this section unless the 
        taxpayer elects not to claim the credit under section 29 with 
        respect to the well.''.
    (c) Credit Treated as Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986 is amended by striking ``plus'' at the 
end of paragraph (14), by striking the period at the end of paragraph 
(15) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
            ``(16) the marginal oil and gas well production credit 
        determined under section 45G(a).''.
    (d) Credit Allowed Against Regular and Minimum Tax.--
            (1) In general.--Subsection (c) of section 38 of the 
        Internal Revenue Code of 1986 (relating to limitation based on 
        amount of tax) is amended by redesignating paragraph (3) as 
        paragraph (4) and by inserting after paragraph (2) the 
        following new paragraph:
            ``(3) Special rules for marginal oil and gas well 
        production credit.--
                    ``(A) In general.--In the case of the marginal oil 
                and gas well production credit--
                            ``(i) this section and section 39 shall be 
                        applied separately with respect to the credit, 
                        and
                            ``(ii) in applying paragraph (1) to the 
                        credit--
                                    ``(I) subparagraphs (A) and (B) 
                                thereof shall not apply, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the marginal 
                                oil and gas well production credit).
                    ``(B) Marginal oil and gas well production 
                credit.--For purposes of this subsection, the term 
                `marginal oil and gas well production credit' means the 
                credit allowable under subsection (a) by reason of 
                section 45G(a).''.
            (2) Conforming amendment.--Subclause (II) of section 
        38(c)(2)(A)(ii) of such Code is amended by inserting ``or the 
        marginal oil and gas well production credit'' after 
        ``employment credit''.
    (e) Carryback.--Subsection (a) of section 39 of the Internal 
Revenue Code of 1986 (relating to carryback and carryforward of unused 
credits generally) is amended by adding at the end the following new 
paragraph:
            ``(3) 10-year carryback for marginal oil and gas well 
        production credit.--In the case of the marginal oil and gas 
        well production credit (as defined in section 38(c)(3))--
                    ``(A) this section shall be applied separately from 
                the business credit (other than the marginal oil and 
                gas well production credit),
                    ``(B) paragraph (1) shall be applied by 
                substituting `10 taxable years' for `1 taxable years' 
                in subparagraph (A) thereof, and
                    ``(C) paragraph (2) shall be applied--
                            ``(i) by substituting `31 taxable years' 
                        for `21 taxable years' in subparagraph (A) 
                        thereof, and
                            ``(ii) by substituting `30 taxable years' 
                        for `20 taxable years' in subparagraph (B) 
                        thereof.''.
    (f) Coordination With Section 29.--Section 29(a) of the Internal 
Revenue Code of 1986 is amended by striking ``There'' and inserting 
``At the election of the taxpayer, there''.
    (g) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following item:

                              ``45G. Credit for producing oil and gas 
                                        from marginal wells.''.
    (h) Effective Date.--The amendments made by this section shall 
apply to production in taxable years beginning after December 31, 2001.

SEC. 2. ELECTION TO EXPENSE GEOLOGICAL AND GEOPHYSICAL EXPENDITURES AND 
              DELAY RENTAL PAYMENTS.

    (a) Purpose.--The purpose of this section is to recognize that 
geological and geophysical expenditures and delay rentals are ordinary 
and necessary business expenses that should be deducted in the year the 
expense is incurred.
    (b) Election To Expense Geological and Geophysical Expenditures.--
            (1) In general.--Section 263 of the Internal Revenue Code 
        of 1986 (relating to capital expenditures) is amended by adding 
        at the end the following new subsection:
    ``(j) Geological and Geophysical Expenditures for Domestic Oil and 
Gas Wells.--Notwithstanding subsection (a), a taxpayer may elect to 
treat geological and geophysical expenses incurred in connection with 
the exploration for, or development of, oil or gas within the United 
States (as defined in section 638) as expenses which are not chargeable 
to capital account. Any expenses so treated shall be allowed as a 
deduction in the taxable year in which paid or incurred.''.
            (2) Conforming amendment.--Section 263A(c)(3) of such Code 
        is amended by inserting ``263(j),'' after ``263(i),''.
            (3) Effective date.--
                    (A) In general.--The amendments made by this 
                subsection shall apply to expenses paid or incurred 
                after the date of the enactment of this Act.
                    (B) Transition rule.--In the case of any expenses 
                described in section 263(j) of the Internal Revenue 
                Code of 1986, as added by this subsection, which were 
                paid or incurred on or before the date of the enactment 
                of this Act, the taxpayer may elect, at such time and 
                in such manner as the Secretary of the Treasury may 
                prescribe, to amortize the suspended portion of such 
                expenses over the 36-month period beginning with the 
                month in which the date of the enactment of this Act 
                occurs. For purposes of this subparagraph, the 
                suspended portion of any expense is that portion of 
                such expense which, as of the first day of the 36-month 
                period, has not been included in the cost of a property 
                or otherwise deducted.
    (c) Election To Expense Delay Rental Payments.--
            (1) In general.--Section 263 of the Internal Revenue Code 
        of 1986 (relating to capital expenditures), as amended by 
        subsection (b)(1), is amended by adding at the end the 
        following new subsection:
    ``(k) Delay Rental Payments for Domestic Oil and Gas Wells.--
            ``(1) In general.--Notwithstanding subsection (a), a 
        taxpayer may elect to treat delay rental payments incurred in 
        connection with the development of oil or gas within the United 
        States (as defined in section 638) as payments which are not 
        chargeable to capital account. Any payments so treated shall be 
        allowed as a deduction in the taxable year in which paid or 
        incurred.
            ``(2) Delay rental payments.--For purposes of paragraph 
        (1), the term `delay rental payment' means an amount paid for 
        the privilege of deferring the drilling of an oil or gas well 
        under an oil or gas lease.''.
            (2) Conforming amendment.--Section 263A(c)(3) of such Code, 
        as amended by subsection (b)(2), is amended by inserting 
        ``263(k),'' after ``263(j),''.
            (3) Effective date.--
                    (A) In general.--The amendments made by this 
                subsection shall apply to payments made or incurred 
                after the date of the enactment of this Act.
                    (B) Transition rule.--In the case of any expenses 
                described in section 263(k) of the Internal Revenue 
                Code of 1986, as added by this subsection, which were 
                paid or incurred on or before the date of the enactment 
                of this Act, the taxpayer may elect, at such time and 
                in such manner as the Secretary of the Treasury may 
                prescribe, to amortize the suspended portion of such 
                expenses over the 36-month period beginning with the 
                month in which the date of the enactment of this Act 
                occurs. For purposes of this subparagraph, the 
                suspended portion of any expense is that portion of 
                such expense which, as of the first day of the 36-month 
                period, has not been included in the cost of a property 
                or otherwise deducted.

Ex Output:

Amends the Internal Revenue Code to allow a tax credit for marginal domestic oil and natural gas well production during any taxable year in the amount of $3 per barrel of qualified crude oil production and 50 cents per 1,000 cubic feet of qualified natural gas production, reduced, but not below zero, as oil and gas prices increase. States that the limitation to the general business credit, based on the amount of tax, shall not be reduced by the amount of the marginal oil and gas well credit.Allows both geological and geophysical expenditures on domestic oil and gas exploration and development and delay rental payments, at the taxpayer's election, to be deducted from gross income at the time incurred.