Close Big Oil Tax Loopholes Act

[JBeukema]

Bill Text - 112th Congress (2011-2012) - THOMAS (Library of Congress)

SEC. 102. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

• (a) Denial of Deduction- Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

• • • `(E) SPECIAL RULE FOR CERTAIN OIL AND GAS INCOME- In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term `domestic production gross receipts' shall not include gross receipts from the production, transportation, or distribution of oil, natural gas, or any primary product (within the meaning of subsection (d)(9)) thereof.'.

• (b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS.

• (a) In General- Section 263(c) 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 in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).'.

• (b) Effective Date- The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

SEC. 104. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS WELLS.

• (a) In General- Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

• `(f) Application With Respect to Major Integrated Oil Companies- In the case of any taxable year in which the taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)), the allowance for percentage depletion shall be zero.'.

• (b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2011.

SEC. 105. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

• (a) In General- Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

• `(d) Application With Respect to Major Integrated Oil Companies- This section shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B)).'.

• (b) Effective Date- The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.

TITLE II--OUTER CONTINENTAL SHELF OIL AND NATURAL GAS

SEC. 201. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS ROYALTY RELIEF.

• (a) In General- Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.

• (b) Administration- The Secretary of the Interior shall not be required to provide for royalty relief in the lease sale terms beginning with the first lease sale held on or after the date of enactment of this Act for which a final notice of sale has not been published.

TITLE III--MISCELLANEOUS

SEC. 301. DEFICIT REDUCTION.

• The net amount of any savings realized as a result of the enactment of this Act and the amendments made by this Act (after any expenditures authorized by this Act and the amendments made by this Act) shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.

Would you have voted for it?

Did your 'representatives'?

 

[PLYMCO_PILGRIM]

Oh this is a tough one.

I don't like the tax loopholes/breaks for a company making billions but at the same time I dont want to pay even more per gallon of gas.

This bill will make gas prices go up because the oil companies will continue to make the same profit margin no matter what their operating expense and we, as a country, have no choice but to buy their product or else our economy stops.

Honestly I'd need a few hours to really sit down and read the old code and then re-read it with the changes and really weigh it out.

 

[JWBooth]

Whittle down the size of government and the revenue sought by this bill becomes irrelevant.

The only time folks get excited about the evil oil companies and all that money they are rolling around in is when the government/federal reserve go on a big printing spree. As the value of the dollar collapses, the price at the pump increases. Oil, and its by product gasoline, are the one commodity whose cost to the consumer is readily apparent.

 

[Quantum Windbag]

I would never vote for anything that I thought was unconstitutional, and my representative never got a chance to vote for it because it originated in the Senate, making it, by default, unconstitutional.

 

[PLYMCO_PILGRIM]

I would never vote for anything that I thought was unconstitutional, and my representative never got a chance to vote for it because it originated in the Senate, making it, by default, unconstitutional.

wait this originated in the senate? WTF is going on in this country...presidents starting wars without congressional approval, senate introducing bills, executive branch creating laws through govt orgs like the EPA......WTF

People really need to read the federalist papers and the constitution again, or for the first time!