GovTrack’s Bill Summary
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S. 449 (101st): Domestic Energy Security Act of 1989
- Introduced:
- Feb 23, 1989 (101st Congress, 1989–1990)
- Sponsor:
- Sen. David Boren [D-OK]
- Status:
- Died (Referred to Committee)
The bill’s title was written by the bill’s sponsor. S. stands for Senate bill.
Library of Congress Summary
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.
2/23/1989--Introduced.
Domestic Energy Security Act of 1989 -
Title
I
-
National Energy Security Tax Credits
Amends the Internal Revenue Code (IRC) to establish a crude oil and natural gas exploration and development tax credit.
Allows a 20 percent credit for qualified investments.
Establishes a marginal production income tax credit for producers who maintain economically unproductive oil wells.
Applies the credit to domestic crude that is:
(1) from stripper well property;
(2) heavy oil;
(3) oil recovered through a tertiary recovery method; or
(4) harsh environment oil (produced from Arctic areas or in submerged lands).
Fixes the credit at 20 percent of the qualified cost (determined in accordance with a formula set forth in this Act) of each barrel produced by the producer during the taxable year.
Title
II
-
Additional Exploration and Production Incentives
Amends the IRC to treat certain geological and geophysical costs and surface casing costs as intangible drilling and development costs that a taxpayer may elect to capitalize or to deduct for income tax purposes.
Permits a percentage depletion income tax deduction for proven oil and gas wells that have been transferred to a new owner.
Exempts oil and gas wells from the application of the net income limitation on percentage depletion.
Increases from 65 percent to 100 percent the taxable income limitation on the percentage depletion deduction for oil and gas property.
Extends the income tax credit for producing fuel from a nonconventional source to qualified fuels from wells or facilities in service before January 1, 1998.
(The change represents a seven-year extension of the credit.) Affirms natural gas found in tight sands formations as a qualified fuel with respect to the credit.
Title
III
-
Amendments to the Alternative Minimum Tax
Repeals provisions that identify intangible drilling costs as a tax preference item for purposes of determining alternative minimum tax liability and corporate preference reductions.
Title
IV
-
Miscellaneous Tax and Administrative Amendments
Declares Revenue Ruling 77-176 (and other rulings that reach similar results) to be inapplicable with respect to the income tax treatment of mineral sharing arrangements.
(The Revenue Ruling addresses situations in which a driller receives from a lessee an operating interest in oil and gas property as consideration for drilling a well on the leased tract.) Revises provisions governing the time when economic performance occurs for the purpose of income tax deductions or credits in connection with removal of offshore oil or gas production facilities.
Specifies expressly the types of oil and gas exploration and development activities that are exempt from the required application of uniform cost capitalization rules.
House Republican Conference Summary
The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.
No summary available.
House Democratic Caucus Summary
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