A bill to amend the Internal Revenue Code of 1954 to eliminate, in the case of any oil or gas well located outside the United States, the percentage depletion allowance and the option to deduct intangible drilling and development costs, and to deny a foreign tax credit with respect to the income derived from any such well.

Disallows, under the Internal Revenue Code, percentage depletion deductions on foreign oil and gas wells, tax deductions for intangible drilling and development costs for foreign oil or gas wells, and tax credits for income, war profits, or excess profits tax paid or accrued which is attributable to income from foreign oil or gas wells.

Allows a tax deduction for excess profits taxes imposed by foreign countries to the extent a credit is denied for such taxes.