This bill limits or repeals certain fossil fuel oil and gas subsidies for oil companies. Specifically, it
increases to seven years the amortization period for geological and geophysical expenditures;
repeals the tax credits for producing oil and gas from marginal wells and for enhanced oil recovery;
repeals the tax deduction for the intangible drilling and development costs of oil and gas wells;
repeals percentage depletion;
repeals the tax deduction for tertiary injectant expenses;
repeals the passive loss exception for working interests in oil and gas property;
denies the tax deduction for income attributable to domestic production activities for oil and gas activities;
prohibits the use of the last-in, first-out (LIFO) accounting method by major integrated oil companies;
limits the foreign tax credit for dual capacity taxpayers (i.e., taxpayers who are subject to a levy of a foreign country or U.S. possession and receive specific economic benefits from such country or possession); and
expands the definition of crude oil for purposes of the excise tax on petroleum and petroleum products to include any oil derived from a bitumen or bituminous mixture (tar sands), and any oil derived from kerogen-bearing sources (oil shale).
Actions
Sep 29, 2020
Referred to the House Committee on Ways and Means.