< Back to H.R. 4231 (112th Congress, 2011–2013)

Text of the Gas Rebate Act of 2012

This bill was introduced on March 21, 2012, in a previous session of Congress, but was not enacted. The text of the bill below is as of Mar 21, 2012 (Introduced).

Source: GPO

I

112th CONGRESS

2d Session

H. R. 4231

IN THE HOUSE OF REPRESENTATIVES

March 21, 2012

(for himself, Mr. Connolly of Virginia, Mr. Conyers, Mr. Stark, Mr. Jackson of Illinois, Mr. Rangel, Ms. Hahn, Mr. Ryan of Ohio, Mr. Schiff, Mr. Filner, Mr. Van Hollen, Mr. Carson of Indiana, Mr. McNerney, and Ms. Chu) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to repeal certain tax breaks for gas and oil companies and to refund the revenue savings to registered vehicle owners.

1.

Short title

This Act may be cited as the Gas Rebate Act of 2012.

I

Denial of certain tax benefits to oil and gas companies

101.

Repeal of enhanced oil recovery credit

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 43 (and the table of sections of such subpart is amended by striking the item relating to such section).

(b)

Conforming amendments

(1)

Subsection (b) of section 38 of such Code is amended by striking paragraph (6) and redesignating paragraphs (7) through (36) as paragraphs (6) through (35), respectively.

(2)

Paragraph (7) of section 45Q(d) of such Code is amended to read as follows:

(7)

Inflation adjustment

(A)

In general

In the case of any taxable year beginning in a calendar year after 2009, there shall be substituted for each dollar amount contained in subsection (a) an amount equal to the product of—

(i)

such dollar amount, multiplied by

(ii)

the inflation adjustment factor for such calendar year.

(B)

Inflation adjustment factor

The term inflation adjustment factor means, with respect to any calendar year, a fraction the numerator of which is the GNP implicit price deflator for the preceding calendar year and the denominator of which is the GNP implicit price deflator for 2008. For purposes of the preceding sentence, the term GNP implicit price deflator means the first revision of the implicit price deflator for the gross national product as computed and published by the Secretary of Commerce. Not later than April 1 of any calendar year, the Secretary shall publish the inflation adjustment factor for the preceding calendar year.

.

(3)

Subsection (c) of section 196 of such Code is amended by striking paragraph (5) and redesignating paragraphs (6) through (14) as paragraphs (5) through (13), respectively.

(c)

Effective date

(1)

In general

Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2012.

(2)

Continuation of basis reductions

Paragraph (2) of section 43(d) of the Internal Revenue Code of 1986 (as in effect before its repeal by this section) shall continue to apply with respect to credits determined for taxable years beginning on or before December 31, 2012.

102.

Repeal of credit for producing oil and gas from marginal wells

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 45I (and the table of sections of such subpart is amended by striking the item relating to such section).

(b)

Conforming amendment

Subsection (b) of section 38 of such Code, as amended by section 101, is amended by striking paragraph (18) and redesignating paragraphs (19) through (35) as paragraphs (18) through (34), respectively.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

103.

Repeal of expensing of intangible drilling and development costs

(a)

In general

Section 263 of the Internal Revenue Code of 1986 is amended by striking subsection (c).

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2012.

104.

Repeal of deduction for tertiary injectants

(a)

In general

Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 193 (and the table of sections of such subpart is amended by striking the item relating to such section).

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

105.

Repeal of exception to passive loss limitations for working interests in oil and gas properties

(a)

In general

Paragraph (3) of section 469(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(C)

Termination

Subparagraph (A) shall not apply with respect to any taxable year beginning after the date of the enactment of this Act.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2012.

106.

Repeal of percentage depletion for oil and gas wells

(a)

In general

Part I of subchapter I of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 613A (and the table of sections of such part is amended by striking the item relating to such section).

(b)

Conforming amendments

(1)

Subsection (d) of section 45H of such Code is amended—

(A)

by striking For purposes this section and inserting the following:

(1)

In general

For purposes of this section

,

(B)

by striking (within the meaning of section 613A(d)(3)), and

(C)

by adding at the end the following new paragraph:

(2)

Related person

For purposes of this subsection, a person is a related person with respect to the taxpayer if a significant ownership interest in either the taxpayer or such person is held by the other, or if a third person has a significant ownership interest in both the taxpayer and such person. For purposes of the preceding sentence, the term significant ownership interest means—

(A)

with respect to any corporation, 5 percent or more in value of the outstanding stock of such corporation,

(B)

with respect to a partnership, 5 percent or more interest in the profits or capital of such partnership, and

(C)

with respect to an estate or trust, 5 percent or more of the beneficial interests in such estate or trust.

For purposes of determining a significant ownership interest, an interest owned by or for a corporation, partnership, trust, or estate shall be considered as owned directly both by itself and proportionately by its shareholders, partners, or beneficiaries, as the case may be.

.

(2)

Subparagraph (F) of section 56(g)(4) of such Code is amended to read as follows:

(F)

Depletion

The allowance for depletion with respect to any property placed in service in a taxable year beginning after December 31, 1989, shall be cost depletion determined under section 611.

.

(3)

Paragraph (1) of section 57(a) of such Code is amended by striking the last sentence.

(4)

Paragraph (4) of section 291(b) of such Code is amended by adding at the end the following: Any reference in the preceding sentence to section 613A shall be treated as a reference to such section as in effect prior to the date of the enactment of the Gas Rebate Act of 2012..

(5)

Subsection (d) of section 613 of such Code is amended by striking Except as provided in section 613A, in the case of and inserting In the case of.

(6)

Subsection (e) of section 613 of such Code is amended—

(A)

by striking or section 613A in paragraph (2), and

(B)

by striking any amount described in section 613A(d)(5) in paragraph (3) and inserting any lease bonus, advance royalty, or other amount payable without regard to production from property.

(7)

Subsection (a) of section 705 of such Code is amended—

(A)

by inserting and at the end of paragraph (1)(C),

(B)

by striking ; and at the end of paragraph (2)(B) and inserting a period, and

(C)

by striking paragraph (3).

(8)

Section 776 of such Code is amended by striking subsection (a) and by redesignating subsection (b) as subsection (a).

(9)

Subparagraph (D) of section 954(g)(2) of such Code is amended by inserting (as in effect before the date of the enactment of the Gas Rebate Act of 2012) after section 613A.

(10)

Subparagraph (C) of section 993(c)(2) of such Code is amended by striking section 613 or 613A and inserting section 613 (determined without regard to subsection (d) thereof).

(11)

Subparagraph (D) of section 1202(e)(3) of such Code is amended by striking section 613 or 613A and inserting section 613 (determined without regard to subsection (d) thereof).

(12)

Paragraph (2) of section 1367(a) of such Code is amended by inserting and at the end of subparagraph (C), by striking , and at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E).

(13)

Subsection (c) of section 1446 of such Code is amended by striking paragraph (2) and by redesignating paragraph (3) as paragraph (2).

(c)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2012.

107.

Deduction for income attributable to domestic production activities not allowed with respect to oil and gas activities

(a)

In general

Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and, and by inserting after clause (iii) the following new clause:

(iv)

the production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof.

.

(b)

Conforming amendment

Subsection (d) of section 199 of such Code is amended by striking paragraph (9) and by redesignating paragraph (10) as paragraph (9).

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.

108.

7-year amortization for geological and geophysical expenditures

(a)

In general

Subsection (h) of section 167 of the Internal Revenue Code of 1986 is amended—

(1)

by striking 24-month in paragraphs (1) and (4) and inserting 7-year, and

(2)

by striking paragraph (5).

(b)

Effective date

The amendments made by this section shall apply to expenses paid or incurred after December 31, 2012.

II

Registered Vehicle Owner Rebate

201.

Registered vehicle owner rebate

(a)

In general

Each person who is a registered motor vehicle owner as of the date of the enactment of this Act, shall be treated as having made a payment against the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for the taxable year during which such date occurs in an amount equal to the motor vehicle owner rebate amount with respect to such person.

(b)

Motor vehicle owner rebate amount

For purposes of this section, the motor vehicle owner rebate amount with respect to any person is an amount equal to—

(1)

the number of motor vehicles registered by such person in the United States, multiplied by

(2)

an amount equal to—

(A)

the amount of revenue that the Secretary of the Treasury estimates will be received in the Treasury after December 31, 2012, and before December 31, 2022, which is attributable to title I of the Gas Rebate Act of 2012 and the amendments made thereby, divided by

(B)

the number of motor vehicles registered by all persons in the United States.

(c)

Advance payment

(1)

In general

The Secretary of the Treasury shall, subject to provisions of the Internal Revenue Code of 1986, refund or credit any overpayment attributable to this section as rapidly as possible.

(2)

No interest

No interest shall be allowed on any overpayment attributable to this section.

(d)

Definition and special rules

For purposes of this section—

(1)

Motor vehicle

The term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on rail or rails) and which has at least 4 wheels.

(2)

Registration

A motor vehicle shall not be treated as registered in the United States unless such vehicle is situated within the United States and registered under the laws of one of the several States.

(3)

Long-term lease agreements

In the case of a person who leases a vehicle under a lease agreement with an uninterrupted lease term of 1 year or more, such person (and not the lessor of the vehicle) shall be treated as the registered vehicle owner.

(4)

No payments to government entities

Motor vehicles owned by any Federal, State, local, or foreign government (or any political subdivision, agency, or instrumentality thereof) shall not be taken into account.

(e)

Coordination with State authorities

For purposes of this section, the Secretary of the Treasury shall prescribe such rules, and consult with such State authorities, as may be necessary or appropriate to determine the registered motor vehicle owners to whom this section applies and to prevent erroneous rebates and double-counting of motor vehicles.