Gas Rebate Act of 2012 - Amends the Internal Revenue Code to repeal certain tax incentives for oil and gas companies, including: (1) the tax credit for enhanced oil recovery, (2) the tax credit for producing oil and gas from marginal wells, (3) the expensing allowance for intangible drilling and development costs, (4) the tax deduction for tertiary injectant expenses, (5) the exception to passive loss limitations for working interests in oil and gas properties, and (6) percentage depletion for oil and gas wells.
Denies a tax deduction for income attributable to the domestic production, refining, processing, transportation, or distribution of oil, gas, or any primary product thereof. Extends to seven years the required amortization period for geological and geophysical expenditures.
Allows registered motor vehicle owners a rebate against income tax based on their share of revenues saved from the repeal of the tax incentives for oil and gas companies by this Act.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4231 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4231
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 21, 2012
Mr. Yarmuth (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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Gas Rebate Act of 2012''.
TITLE I--DENIAL OF CERTAIN TAX BENEFITS TO OIL AND GAS COMPANIES
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
TITLE II--REGISTERED VEHICLE OWNER REBATE
SEC. 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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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