II
Calendar No. 337
112th CONGRESS
2d Session
S. 2204
IN THE SENATE OF THE UNITED STATES
March 19, 2012
Mr. Menendez (for himself and Mr. Reid) introduced the following bill; which was read the first time
March 20, 2012
Read the second time and placed on the calendar
A BILL
To eliminate unnecessary tax subsidies and promote renewable energy and energy conservation.
Short title
This Act may be cited as the
Repeal Big Oil Tax Subsidies
Act
.
Tax extensions relating to energy
Extension of credit for energy-efficient existing homes
In general
Paragraph (2) of section 25C(g) of the Internal Revenue
Code of 1986 is amended by striking December 31, 2011
and
inserting December 31, 2012
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Extension of credit for certain plug-in electric vehicles
In general
Subsection (f) of
section 30 of the Internal Revenue Code of 1986 is amended by striking
December 31, 2011
and inserting December 31,
2012
.
Effective date
The amendment made by this section shall apply to vehicles acquired after December 31, 2011.
Extension of credit for alternative fuel vehicle refueling property
Extension
Paragraph
(2) of section 30C(g) of the Internal Revenue Code of 1986 is amended by
striking December 31, 2011.
and inserting December 31,
2012
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Extension of cellulosic biofuel producer credit
In general
Subparagraph (H) of section 40(b)(6) of the Internal Revenue Code of 1986 is amended to read as follows:
Application of paragraph
In general
This paragraph shall apply with respect to qualified cellulosic biofuel production after December 31, 2008, and before January 1, 2014.
No carryover to certain years after expiration
If this paragraph ceases to apply for any period by reason of clause (i), rules similar to the rules of subsection (e)(2) shall apply.
.
Conforming amendment
In general
Paragraph (2) of section 40(e) of the Internal Revenue
Code of 1986 is amended by striking or subsection
(b)(6)(H)
.
Effective date
The amendment made by this subsection shall take effect as if included in section 15321(b) of the Heartland, Habitat, and Horticulture Act of 2008.
Algae treated as a qualified feedstock for purposes of the cellulosic biofuel producer credit, etc
In general
Subclause (I) of section 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is amended to read as follows:
is derived by, or from, qualified feedstocks, and
.
Qualified feedstock; special rules for algae
Paragraph (6) of section 40(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraphs (F), (G), and (H), as amended by this Act, as subparagraphs (H), (I), and (J), respectively, and by inserting after subparagraph (E) the following new subparagraphs:
Qualified feedstock
For purposes of this paragraph, the term qualified feedstock means—
any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, and
any cultivated algae, cyanobacteria, or lemna.
Special rules for algae
In the case of fuel which is derived by, or from, feedstock described in subparagraph (F)(ii) and which is sold by the taxpayer to another person for refining by such other person into a fuel which meets the requirements of subparagraph (E)(i)(II) and the refined fuel is not excluded under subparagraph (E)(iii)—
such sale shall be treated as described in subparagraph (C)(i),
such fuel shall be treated as meeting the requirements of subparagraph (E)(i)(II) and as not being excluded under subparagraph (E)(iii) in the hands of such taxpayer, and
except as provided in this subparagraph, such fuel (and any fuel derived from such fuel) shall not be taken into account under subparagraph (C) with respect to the taxpayer or any other person.
.
Algae treated as a qualified feedstock for purposes of bonus depreciation for biofuel plant property
In general
Subparagraph (A) of section 168(l)(2) of the Internal
Revenue Code of 1986 is amended by striking solely to produce cellulosic
biofuel
and inserting solely to produce second generation
biofuel (as defined in section 40(b)(6)(E))
.
Conforming amendments
Subsection (l) of section 168 of such Code is amended—
by striking
cellulosic biofuel
each place it appears in the text thereof and
inserting second generation biofuel
,
by striking paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3) through (7), respectively,
by striking Cellulosic
in the
heading of such subsection and inserting Second Generation
,
and
by striking cellulosic
in the
heading of paragraph (2) and inserting second generation
.
Conforming amendments
Section 40 of the Internal Revenue Code of 1986, as amended by subsection (b), is amended—
by striking
cellulosic biofuel
each place it appears in the text thereof and
inserting second generation biofuel
,
by striking
Cellulosic
in the headings of subsections
(b)(6), (b)(6)(E), and (d)(3)(D) and inserting Second generation
,
and
by striking cellulosic
in the
headings of subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and (e)(3) and
inserting second
generation
.
Clause (ii) of
section 40(b)(6)(E) of such Code is amended by striking Such term shall
not
and inserting The term
.second generation
biofuel
shall not
Paragraph (1) of
section 4101(a) of such Code is amended by striking cellulosic
biofuel
and inserting second generation biofuel
.
Effective dates
In general
Except as provided in paragraph (2), the amendments made by this section shall apply to fuels sold or used after the date of the enactment of this Act.
Application to bonus depreciation
The amendments made by subsection (c) shall apply to property placed in service after the date of the enactment of this Act.
Extension of incentives for biodiesel and renewable diesel
Credits for biodiesel and renewable diesel used as fuel
Subsection (g) of
section 40A of the Internal Revenue Code of 1986 is amended by striking
December 31, 2011
and inserting December 31,
2012
.
Excise tax credits and outlay payments for biodiesel and renewable diesel fuel mixtures
Paragraph (6) of
section 6426(c) of the Internal Revenue Code of 1986 is amended by striking
December 31, 2011
and inserting December 31,
2012
.
Subparagraph (B)
of section 6427(e)(6) of such Code is amended by striking December 31,
2011
and inserting December 31, 2012
.
Effective date
The amendments made by this section shall apply to fuel sold or used after December 31, 2011.
Extension of production credit for refined coal
In general
Subparagraph (B) of section 45(d)(8) of the Internal
Revenue Code of 1986 is amended by striking January 1, 2012
and
inserting January 1, 2013
.
Effective date
The amendment made by this section shall apply to facilities placed in service after December 31, 2011.
Extension of production credit
In general
Section 45(d) of the
Internal Revenue Code of 1986 is amended by striking January 1,
2014
each place it appears in paragraphs (2), (3), (4), (6), (7), (9),
and (11) and inserting January 1, 2015
.
Wind facilities
Paragraph (1) of
section 45(d) of the Internal Revenue Code of 1986 is amended by striking
January 1, 2013
and inserting January 1,
2014
.
Increased credit amount for Indian coal facilities placed in service before 2009
Subparagraph (A) of section 45(e)(10) of the Internal
Revenue Code of 1986 is amended by striking 7-year period
each
place it appears and inserting 8-year period
.
Conforming amendments
Subsection (e) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended—
by striking
January 1, 2013
in paragraph (1) and inserting January 1,
2014
, and
by striking
January 1, 2014
in paragraph (2) and inserting January 1,
2015
.
Effective dates
In general
Except as provided in paragraph (2), the amendments made by this section shall apply to facilities placed in service after December 31, 2012.
Indian coal
The amendment made by subsection (c) shall take effect on the date of the enactment of this Act.
Extension of credit for energy-efficient new homes
In general
Subsection (g) of section 45L of the Internal Revenue
Code of 1986 is amended by striking December 31, 2011
and
inserting December 31, 2012
.
Effective date
The amendment made by this section shall apply to homes acquired after December 31, 2011.
Extension of credit for energy-efficient appliances
In general
Section 45M(b) of the Internal Revenue Code of 1986 is
amended by striking 2011
each place it appears other than in the
provisions specified in subsection (b), and inserting 2011 or
2012
.
Provisions specified
The provisions of section 45M(b) of the Internal Revenue Code of 1986 specified in this subsection are subparagraph (C) of paragraph (1) and subparagraph (E) of paragraph (2).
Effective date
The amendments made by this section shall apply to appliances produced after December 31, 2011.
Extension of election of investment tax credit in lieu of production credit
In general
Clause (ii) of section 48(a)(5)(C) of the Internal
Revenue Code of 1986 is amended by striking or 2013
and
inserting 2013, or 2014
.
Wind facilities
Clause (i) of section 48(a)(5)(C) of the Internal
Revenue Code of 1986 is amended by striking Any qualified
facility
and all that follows and inserting “Any facility which
is—
a qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013, or
a qualifying offshore wind facility, if such facility is placed in service in 2012, 2013, or 2014.
.
Qualifying offshore wind facility
Paragraph (5) of section 48(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Qualifying offshore wind facility
For purposes of this paragraph—
In general
The term qualifying offshore wind facility means an offshore facility using wind to produce electricity.
Offshore facility
The term offshore facility means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of the United States, and the Outer Continental Shelf of the United States. For purposes of the preceding sentence, the term United States has the meaning given in section 638(1).
.
Effective date
The amendments made by this section shall apply to facilities placed in service after December 31, 2011.
Expansion of qualifying advanced energy project credit
In general
Subparagraph (B) of
section 48C(d)(1) of the Internal Revenue Code of 1986 is amended by striking
$2,300,000,000
and inserting
$4,600,000,000
.
Effective date
The amendment made by this section shall take effect on the date of the enactment of this Act.
Extension of special allowance for cellulosic biofuel plant property
In general
Subparagraph (D) of
section 168(l)(2) of the Internal Revenue Code of 1986 is amended by striking
January 1, 2013
and inserting January 1,
2014
.
Conforming amendment
Paragraph (4) of section 168(l) of the Internal Revenue Code of 1986, as redesignated by this Act, is amended—
by striking
and
at the end of subparagraph (A),
by redesignating subparagraph (B) as subparagraph (C), and
by inserting after subparagraph (A) the following new subparagraph:
by substituting
January 1, 2014
for January 1, 2013
in clause (i)
thereof,
and
.
Extension of suspension of limitation on percentage depletion for oil and gas from marginal wells
In general
Clause (ii) of section 613A(c)(6)(H) of the Internal
Revenue Code of 1986 is amended by striking January 1, 2012
and
inserting January 1, 2013
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of alternative fuels excise tax credits
In general
Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C) of the
Internal Revenue Code of 1986 are each amended by striking December 31,
2011
and inserting December 31, 2012
.
Effective date
The amendments made by this section shall apply to fuel sold or used after December 31, 2011.
Extension of grants for specified energy property in lieu of tax credits
In general
Subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009, as amended by section 707 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, is amended—
by striking
or 2011
in paragraph (1) and inserting 2011, or
2012
, and
in paragraph (2)—
by striking
after 2011
and inserting after 2012
, and
by striking
or 2011
and inserting 2011, or 2012
.
Conforming amendment
Subsection (j) of section 1603 of division B of such
Act, as so amended, is amended by striking 2012
and inserting
2013
.
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2011.
Extension of mine rescue team training credit
In general
Subsection (e) of section 45N of the Internal Revenue
Code of 1986 is amended by striking December 31, 2011
and
inserting December 31, 2012
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Extension of election to expense mine safety equipment
In general
Subsection (g) of section 179E of the Internal Revenue
Code of 1986 is amended by striking December 31, 2011
and
inserting December 31, 2012
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Repeal of oil and gas subsidies
Close big oil tax loopholes
Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers
In general
Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:
Special rules relating to major integrated oil companies which are dual capacity taxpayers
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—
if, for such period, the foreign country or possession does not impose a generally applicable income tax, or
to the extent such amount exceeds the amount (determined in accordance with regulations) which—
is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or
would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.
Dual capacity taxpayer
For purposes of this subsection, the term dual capacity taxpayer means, with respect to any foreign country or possession of the United States, a person who—
is subject to a levy of such country or possession, and
receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.
Generally applicable income tax
For purposes of this subsection—
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.
Exceptions
Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—
persons who are not dual capacity taxpayers, and
persons who are citizens or residents of the foreign country or possession.
.
Effective Date
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.
Contrary treaty obligations upheld
The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.
Limitation on section 199 deduction attributable to oil, natural gas, or primary products thereof
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:
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.
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Limitation on deduction for intangible drilling and development costs
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)).
.
Effective date
The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.
Limitation on percentage depletion allowance for oil and gas wells
In general
Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
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.
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
Limitation on deduction for tertiary injectants
In general
Section 193 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
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)).
.
Effective date
The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.
Outer Continental Shelf oil and natural gas
Repeal of outer Continental Shelf deep water and deep gas royalty relief
In general
Sections 344 and 345 of the Energy Policy Act of 2005 (42 U.S.C. 15904, 15905) are repealed.
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.
Budgetary effects
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.
Budgetary effects
The budgetary effects of this Act, for the
purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be
determined by reference to the latest statement titled Budgetary Effects
of PAYGO Legislation
for this Act, submitted for printing in the
Congressional Record by the Chairman of the Senate Budget Committee, provided
that such statement has been submitted prior to the vote on passage.
March 20, 2012
Read the second time and placed on the calendar
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