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..................................................................... (Original Signature of Member)

113TH CONGRESS 1ST SESSION

H. R. ll

To eliminate unnecessary oil tax credits and subsidies for major oil companies to reduce the national debt.

IN THE HOUSE OF REPRESENTATIVES


Mr. MURPHY of Florida introduced the following bill; which was referred to the Committee on llllllllllllll

A BILL
To eliminate unnecessary oil tax credits and subsidies for major oil companies to reduce the national debt. 1 Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled, 3 4


SECTION 1. SHORT TITLE.

This Act may be cited as the End Welfare for Big

5 Oil Act of 2013.

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2 1 2 3 4 5 6 7 8 9

TITLE IREPEAL OF OIL AND GAS SUBSIDIES Subtitle AClose Big Oil Tax Loopholes
SEC. 101. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO MAJOR INTEGRATED OIL COMPANIES TAXPAYERS. WHICH ARE DUAL CAPACITY

(a) IN GENERAL.Section 901 of the Internal Rev-

10 enue Code of 1986 is amended by redesignating subsection 11 (n) as subsection (o) and by inserting after subsection (m) 12 the following new subsection: 13 14 (n) SPECIAL RULES RELATING
GRATED TO

MAJOR INTE-

OIL COMPANIES WHICH ARE DUAL CAPACITY

15 TAXPAYERS. 16 17 18 19 20 21 22 23 24 25
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(1) GENERAL

RULE.Notwithstanding

any

other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States for any period shall not be considered a tax (A) if, for such period, the foreign country or possession does not impose a generally applicable income tax, or
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3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (B) to the extent such amount exceeds the amount (determined in accordance with regulations) which (i) is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or (ii) would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer. Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B). (2) DUAL
CAPACITY TAXPAYER.For

pur-

poses of this subsection, the term dual capacity taxpayer 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 determined in accordance with regulations) from such country or possession.

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4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (3) GENERALLY
APPLICABLE INCOME TAX.

For purposes of this subsection (A) IN


GENERAL.The

term generally

applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession. (B) EXCEPTIONS.Such term shall not include a tax unless it has substantial application, by its terms and in practice, to (i) persons who are not dual capacity taxpayers, and (ii) persons who are citizens or residents of the foreign 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 the date of the enactment of this Act. (2) CONTRARY
TREATY OBLIGATIONS

UPHELD.The

amendments made by this section

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5 1 2 3 4 5 6 shall not apply to the extent contrary to any treaty obligation of the United States.
SEC. 102. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

(a) DENIAL

OF

DEDUCTION.Paragraph (4) of sec-

7 tion 199(c) of the Internal Revenue Code of 1986 is 8 amended by adding at the end the following new subpara9 graph: 10 11 12 13 14 15 16 17 18 19 (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

20 this section shall apply to taxable years beginning after 21 December 31, 2013. 22 23 24
SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS.

(a) IN GENERAL.Section 263(c) of the Internal

25 Revenue Code of 1986 is amended by adding at the end

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6 1 the following new sentence: This subsection shall not 2 apply to amounts paid or incurred by a taxpayer in any 3 taxable year in which such taxpayer is a major integrated 4 oil company (as defined in section 167(h)(5)(B)).. 5 (b) EFFECTIVE DATE.The amendment made by

6 this section shall apply to amounts paid or incurred in tax7 able years beginning after December 31, 2013. 8 9 10
SEC. 104. LIMITATION ON PERCENTAGE DEPLETION ALLOWANCE FOR OIL AND GAS WELLS.

(a) IN GENERAL.Section 613A of the Internal Rev-

11 enue Code of 1986 is amended by adding at the end the 12 following new subsection: 13 14 (f) APPLICATION WITH RESPECT
GRATED TO

MAJOR INTE-

OIL COMPANIES.In the case of any taxable year

15 in which the taxpayer is a major integrated oil company 16 (as defined in section 167(h)(5)(B)), the allowance for 17 percentage depletion shall be zero.. 18 (b) EFFECTIVE DATE.The amendment made by

19 this section shall apply to taxable years beginning after 20 December 31, 2013. 21 22 23
SEC. 105. LIMITATION ON DEDUCTION FOR TERTIARY INJECTANTS.

(a) IN GENERAL.Section 193 of the Internal Rev-

24 enue Code of 1986 is amended by adding at the end the 25 following new subsection:

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7 1 2 (d) APPLICATION WITH RESPECT


GRATED TO

MAJOR INTE-

OIL COMPANIES.This section shall not apply to

3 amounts paid or incurred by a taxpayer in any taxable 4 year in which such taxpayer is a major integrated oil com5 pany (as defined in section 167(h)(5)(B)).. 6 (b) EFFECTIVE DATE.The amendment made by

7 this section shall apply to amounts paid or incurred in tax8 able years beginning after December 31, 2013. 9 10 11 12 13

Subtitle BOuter Continental Shelf Oil and Natural Gas


SEC. 111. REPEAL OF OUTER CONTINENTAL SHELF DEEP WATER AND DEEP GAS ROYALTY RELIEF.

(a) IN GENERAL.Sections 344 and 345 of the En-

14 ergy Policy Act of 2005 (42 U.S.C. 15904, 15905) are 15 repealed. 16 (b) LIMITATION ON APPLICATION.The repeal under

17 subsection (a) shall not affect the application of the re18 pealed sections with respect to any lease sale for which 19 a notice of sale is published before the date of enactment 20 of this Act. 21 22 23

TITLE IIBUDGETARY EFFECTS


SEC. 201. DEFICIT REDUCTION.

The net amount of any savings realized as a result

24 of the enactment of this Act and the amendments made 25 by this Act (after any expenditures authorized by this Act

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8 1 and the amendments made by this Act) shall be deposited 2 in the Treasury and used for Federal budget deficit reduc3 tion or, if there is no Federal budget deficit, for reducing 4 the Federal debt in such manner as the Secretary of the 5 Treasury considers appropriate.

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