[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2102 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2102
To eliminate certain subsidies for fossil-fuel production.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2021
Ms. Omar introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Natural Resources, Transportation and Infrastructure, Financial
Services, Science, Space, and Technology, Agriculture, and Energy and
Commerce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To eliminate certain subsidies for fossil-fuel production.
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 ``End Polluter Welfare Act of 2021''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definition of fossil fuel.
Sec. 4. Royalty relief.
Sec. 5. Royalties under Mineral Leasing Act.
Sec. 6. Elimination of interest payments for royalty overpayments.
Sec. 7. Removal of limits on liability for offshore facilities and
pipeline operators.
Sec. 8. Restrictions on use of appropriated funds by international
financial institutions for projects that
support fossil fuel.
Sec. 9. Fossil Energy Research and Development Program.
Sec. 10. Advanced Research Projects Agency--Energy.
Sec. 11. Incentives for innovative technologies.
Sec. 12. Rural Utility Service loan guarantees.
Sec. 13. Prohibition on use of funds by the United States International
Development Finance Corporation or the
Export-Import Bank of the United States for
financing projects, transactions, or other
activities that support fossil fuel.
Sec. 14. Transportation funds for grants, loans, loan guarantees, and
other direct assistance.
Sec. 15. Elimination of exclusion of certain lenders as owners or
operators under CERCLA.
Sec. 16. Termination of various tax expenditures relating to fossil
fuels.
Sec. 17. Termination of certain deductions and credits related to
fossil fuels.
Sec. 18. Uniform seven-year amortization for geological and geophysical
expenditures.
Sec. 19. Natural gas gathering lines treated as 15-year property.
Sec. 20. Termination of last-in, first-out method of inventory for oil,
natural gas, and coal companies.
Sec. 21. Repeal of percentage depletion for coal and hard mineral
fossil fuels.
Sec. 22. Termination of capital gains treatment for royalties from
coal.
Sec. 23. Modifications of foreign tax credit rules applicable to oil
and gas industry taxpayers receiving
specific economic benefits.
Sec. 24. Increase in oil spill liability trust fund financing rate.
Sec. 25. Application of certain environmental taxes to synthetic crude
oil.
Sec. 26. Denial of deduction for removal costs and damages for certain
oil spills.
Sec. 27. Tax on crude oil and natural gas produced from the outer
Continental Shelf in the Gulf of Mexico.
Sec. 28. Repeal of corporate income tax exemption for publicly traded
partnerships with qualifying income and
gains from activities relating to fossil
fuels.
Sec. 29. Amortization of qualified tertiary injectant expenses.
Sec. 30. Amortization of development expenditures.
Sec. 31. Amortization of certain mining exploration expenditures.
Sec. 32. Amortization of intangible drilling and development costs in
the case of oil and gas wells and
geothermal wells.
Sec. 33. Permanent excise tax rate for funding of Black Lung Disability
Trust Fund.
Sec. 34. Termination of renewable electricity production credit
eligibility for refined coal.
Sec. 35. Treatment of foreign oil related income as subpart F income.
Sec. 36. Repeal of exclusion of foreign oil and gas extraction income
from the determination of tested income.
Sec. 37. Termination of credit for carbon oxide sequestration.
Sec. 38. Powder River Basin.
Sec. 39. Study and elimination of additional fossil fuel subsidies.
SEC. 3. DEFINITION OF FOSSIL FUEL.
In this Act, the term ``fossil fuel'' means coal, petroleum,
natural gas, or any derivative of coal, petroleum, or natural gas that
is used for fuel.
SEC. 4. ROYALTY RELIEF.
(a) In General.--
(1) Outer continental shelf lands act.--Section 8(a)(3) of
the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)) is
amended--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B).
(2) Energy policy act of 2005.--
(A) Incentives for natural gas production from deep
wells in the shallow waters of the gulf of mexico.--
Section 344 of the Energy Policy Act of 2005 (42 U.S.C.
15904) is repealed.
(B) Deep water production.--Section 345 of the
Energy Policy Act of 2005 (42 U.S.C. 15905) is
repealed.
(b) Future Provisions.--Notwithstanding any other provision of law,
royalty relief shall not be permitted under a lease issued under
section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337).
SEC. 5. ROYALTIES UNDER MINERAL LEASING ACT.
(a) Coal Leases.--Section 7(a) of the Mineral Leasing Act (30
U.S.C. 207(a)) is amended in the fourth sentence by striking ``12\1/2\
per centum'' and inserting ``18\3/4\ percent''.
(b) Leases on Land on Which Oil or Natural Gas Is Discovered.--
Section 14 of the Mineral Leasing Act (30 U.S.C. 223) is amended in the
fourth sentence by striking ``12\1/2\ per centum'' and inserting
``18\3/4\ percent''.
(c) Leases on Land Known or Believed To Contain Oil or Natural
Gas.--Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)(A), in the fifth sentence, by
striking ``12.5 percent'' and inserting ``18\3/4\
percent''; and
(B) in paragraph (2)(A)(ii), by striking ``12\1/2\
per centum'' and inserting ``18\3/4\ percent'';
(2) in subsection (c)(1), in the second sentence, by
striking ``12.5 percent'' and inserting ``18\3/4\ percent'';
(3) in subsection (l), by striking ``12\1/2\ per centum''
each place it appears and inserting ``18\3/4\ percent''; and
(4) in subsection (n)(1)(C), by striking ``12\1/2\ per
centum'' and inserting ``18\3/4\ percent''.
SEC. 6. ELIMINATION OF INTEREST PAYMENTS FOR ROYALTY OVERPAYMENTS.
Section 111 of the Federal Oil and Gas Royalty Management Act of
1982 (30 U.S.C. 1721) is amended by adding at the end the following:
``(k) Payment of Interest.--Interest shall not be paid on any
overpayment.''.
SEC. 7. REMOVAL OF LIMITS ON LIABILITY FOR OFFSHORE FACILITIES AND
PIPELINE OPERATORS.
Section 1004(a) of the Oil Pollution Act of 1990 (33 U.S.C.
2704(a)) is amended--
(1) in paragraph (3), by striking ``plus $75,000,000; and''
and inserting ``and the liability of the responsible party
under section 1002;'';
(2) in paragraph (4)--
(A) by inserting ``(except an onshore pipeline
transporting diluted bitumen, bituminous mixtures, or
any oil manufactured from bitumen)'' after ``for any
onshore facility''; and
(B) by striking the period at the end and inserting
``; and''; and
(3) by adding at the end the following:
``(5) for any onshore facility transporting diluted
bitumen, bituminous mixtures, or any oil manufactured from
bitumen, the liability of the responsible party under section
1002.''.
SEC. 8. RESTRICTIONS ON USE OF APPROPRIATED FUNDS BY INTERNATIONAL
FINANCIAL INSTITUTIONS FOR PROJECTS THAT SUPPORT FOSSIL
FUEL.
(a) Rescission of Unobligated Funds.--
(1) In general.--Of the unobligated balance of amounts
appropriated or otherwise made available for a contribution of
the United States to an international financial institution, an
amount specified in paragraph (2) shall be rescinded if the
institution provides support for a project that supports the
production or use of fossil fuels.
(2) Amount specified.--The amount specified in this
paragraph is an amount the Secretary of the Treasury determines
to be equivalent to the amount of support provided by an
international financial institution described in paragraph (1)
for a project that supports the production or use of fossil
fuels.
(b) Prohibition on Use of Future Funds.--No amounts appropriated or
otherwise made available for a contribution of the United States to an
international financial institution may be provided to the institution
unless the institution agrees to not use the amount to provide support
for any project that supports the production or use of fossil fuels.
(c) International Financial Institution Defined.--In this section,
the term ``international financial institution'' has the meaning given
that term in section 1701(c) of the International Financial
Institutions Act (22 U.S.C. 262r(c)).
SEC. 9. FOSSIL ENERGY RESEARCH AND DEVELOPMENT PROGRAM.
(a) Termination of Authority.--Notwithstanding any other provision
of law, the authority of the Secretary of Energy to carry out the
Fossil Energy Research and Development Program of the Department of
Energy is terminated.
(b) Rescission.--Notwithstanding any other provision of law--
(1) all amounts made available for the Fossil Energy
Research and Development Program that remain unobligated as of
the date of enactment of this Act are rescinded; and
(2) no amounts made available after the date of enactment
of this Act for the Fossil Energy Research and Development
Program shall be expended, other than such amounts as are
necessary to cover costs incurred in terminating ongoing
research of the Fossil Energy Research and Development Program,
as determined by the Secretary of Energy, in consultation with
other appropriate Federal agencies.
SEC. 10. ADVANCED RESEARCH PROJECTS AGENCY--ENERGY.
None of the funds made available to the Advanced Research Projects
Agency--Energy shall be used to carry out any project that supports
fossil fuel.
SEC. 11. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.
(a) In General.--Section 1703 of the Energy Policy Act of 2005 (42
U.S.C. 16513) is amended--
(1) in subsection (b)--
(A) by striking paragraphs (2) and (10); and
(B) by redesignating paragraphs (3), (4), (5), (6),
(7), (8), (9), (11), and (12) as paragraphs (2), (3),
(4), (5), (6), (7), (8), (9), and (10), respectively;
(2) by striking subsection (c); and
(3) by redesignating subsections (d) through (f) as
subsections (c) through (e), respectively.
(b) Conforming Amendment.--Section 1704 of the Energy Policy Act of
2005 (42 U.S.C. 16514) is amended--
(1) by striking subsection (b); and
(2) by redesignating subsection (c) as subsection (b).
SEC. 12. RURAL UTILITY SERVICE LOAN GUARANTEES.
Notwithstanding any other provision of law, the Secretary of
Agriculture may not make a loan under title III of the Rural
Electrification Act of 1936 (7 U.S.C. 931 et seq.) to an applicant for
the purpose of carrying out any project that will use fossil fuel.
SEC. 13. PROHIBITION ON USE OF FUNDS BY THE UNITED STATES INTERNATIONAL
DEVELOPMENT FINANCE CORPORATION OR THE EXPORT-IMPORT BANK
OF THE UNITED STATES FOR FINANCING PROJECTS,
TRANSACTIONS, OR OTHER ACTIVITIES THAT SUPPORT FOSSIL
FUEL.
Notwithstanding any other provision of law, no amounts appropriated
or otherwise made available for the United States International
Development Finance Corporation or the Export-Import Bank of the United
States that are available for obligation on or after the date of the
enactment of this Act may be obligated or expended to support any
project, transaction, or other activity that supports the production or
use of fossil fuels.
SEC. 14. TRANSPORTATION FUNDS FOR GRANTS, LOANS, LOAN GUARANTEES, AND
OTHER DIRECT ASSISTANCE.
Notwithstanding any other provision of law, any amounts made
available to the Department of Transportation (including the Federal
Railroad Administration) may not be used to award any grant, loan, loan
guarantee, or provide any other direct assistance to any rail facility
or port project that transports fossil fuel.
SEC. 15. ELIMINATION OF EXCLUSION OF CERTAIN LENDERS AS OWNERS OR
OPERATORS UNDER CERCLA.
Section 101(20)(F) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601(20)(F)) is
amended by adding at the end the following:
``(iii) Ineligible lenders.--The exclusions
under clauses (i) and (ii) shall not apply to a
person that is a lender that is--
``(I) an investment company
registered under the Investment Company
Act of 1940 (15 U.S.C. 80a-1 et seq.),
investment adviser (as defined in
section 202(a) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-
2(a))), or broker or dealer (as those
terms are defined in section 3(a) of
the Securities Exchange Act of 1934 (15
U.S.C. 78c(a))) with $250,000,000,000
or more in assets under management; or
``(II) a bank holding company (as
defined in section 2 of the Bank
Holding Company Act of 1956 (12 U.S.C.
1841)) with $10,000,000,000 or more in
total consolidated assets.''.
SEC. 16. TERMINATION OF VARIOUS TAX EXPENDITURES RELATING TO FOSSIL
FUELS.
(a) In General.--Subchapter C of chapter 80 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELATING TO FOSSIL-FUEL
INCENTIVES.
``(a) In General.--The following provisions shall not apply to
taxable years beginning after the date of the enactment of the End
Polluter Welfare Act of 2021:
``(1) Section 43 (relating to enhanced oil recovery
credit).
``(2) Section 45I (relating to credit for producing oil and
natural gas from marginal wells).
``(3) Section 461(i)(2) (relating to special rule for
spudding of oil or natural gas wells).
``(4) Section 469(c)(3)(A) (relating to working interests
in oil and natural gas property).
``(5) Section 613A (relating to limitations on percentage
depletion in case of oil and natural gas wells).
``(b) Provisions Relating to Property.--The following provisions
shall not apply to property placed in service after the date of the
enactment of the End Polluter Welfare Act of 2021:
``(1) Section 168(e)(3)(C)(iii) (relating to classification
of certain property).
``(2) Section 169 (relating to amortization of pollution
control facilities) with respect to any atmospheric pollution
control facility.
``(c) Provisions Relating to Costs and Expenses.--The following
provisions shall not apply to costs or expenses paid or incurred after
the date of the enactment of the End Polluter Welfare Act of 2021:
``(1) Section 179B (relating to deduction for capital costs
incurred in complying with Environmental Protection Agency
sulfur regulations).
``(2) Section 468 (relating to special rules for mining and
solid waste reclamation and closing costs).
``(d) Allocated Credits.--No new credits shall be certified under
section 48A (relating to qualifying advanced coal project credit) or
section 48B (relating to qualifying gasification project credit) after
the date of the enactment of the End Polluter Welfare Act of 2021.
``(e) Arbitrage Bonds.--Section 148(b)(4) (relating to safe harbor
for prepaid natural gas) shall not apply to obligations issued after
the date of the enactment of the End Polluter Welfare Act of 2021.''.
(b) Conforming Amendments.--
(1) Section 613(d) of the Internal Revenue Code of 1986 is
amended by striking ``Except as provided in section 613A, in
the case'' and inserting ``In the case''.
(2) The table of sections for subchapter C of chapter 90 of
such Code is amended by adding at the end the following new
item:
``Sec. 7875. Termination of certain provisions relating to fossil-fuel
incentives.''.
SEC. 17. TERMINATION OF CERTAIN DEDUCTIONS AND CREDITS RELATED TO
FOSSIL FUELS.
(a) Special Allowance for Certain Property.--Section 168(k) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following:
``(11) Fossil fuel property.--
``(A) In general.--This subsection shall not apply
with respect to any property which is primarily used
for fossil fuel activities and is placed in service
during any taxable year beginning after the date of the
enactment of the End Polluter Welfare Act of 2021.
``(B) Fossil fuel activities.--For purposes of this
paragraph, the term `fossil fuel activities' means the
exploration, development, mining or production,
processing, refining, transportation (including
pipelines transporting gas, oil, or products thereof),
distribution, or marketing of coal, petroleum, natural
gas, or any derivative of coal, petroleum, or natural
gas that is used for fuel.
``(C) Exception.--The property described in
subparagraph (A) shall not include any motor vehicle
service station or convenience store which does not
qualify as a retail motor fuels outlet under subsection
(e)(3)(E)(iii).''.
(b) Qualified Business Income.--Section 199A(c)(3)(B) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following:
``(viii) Any item of gain or loss derived
from fossil fuel activities (as defined in
section 168(k)(11)(B)) during any taxable year
beginning after the date of the enactment of
the End Polluter Welfare Act of 2021.''.
(c) Credit for Increasing Research Activities.--Section 41(d)(4) of
the Internal Revenue Code of 1986 is amended by adding at the end the
following:
``(I) Fossil fuel activities.--Any research related
to fossil fuel activities (as defined in section
168(k)(11)(B)) which is conducted after the date of the
enactment of the End Polluter Welfare Act of 2021.''.
(d) Foreign-Derived Intangible Income.--Subclause (V) of section
250(b)(3)(A)(i) of the Internal Revenue Code of 1986 is amended to read
as follows:
``(V) any income derived from
fossil fuel activities (as defined in
section 168(k)(11)(B)) during any
taxable year beginning after the date
of the enactment of the End Polluter
Welfare Act of 2021, and''.
(e) Exchange of Real Property Held for Productive Use or
Investment.--Section 1031(a)(2) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(2) Exceptions.--This subsection shall not apply to--
``(A) any exchange of real property held primarily
for sale, or
``(B) any exchange of real property which--
``(i) is used for fossil fuel activities
(as defined in section 168(k)(11)(B)), and
``(ii) occurs after the date of the
enactment of the End Polluter Welfare Act of
2021.''.
SEC. 18. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEOLOGICAL AND GEOPHYSICAL
EXPENDITURES.
(a) In General.--Section 167(h) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``24-month period'' each place it appears
in paragraphs (1) and (4) and inserting ``84-month period'';
(2) by striking paragraph (2) and inserting the following:
``(2) Mid-month convention.--For purposes of paragraph (1),
any payment paid or incurred during any month shall be treated
as paid or incurred on the mid-point of such month.''; and
(3) by striking paragraph (5).
(b) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
SEC. 19. NATURAL GAS GATHERING LINES TREATED AS 15-YEAR PROPERTY.
(a) In General.--Section 168(e)(3)(E) of the Internal Revenue Code
of 1986 is amended by striking ``and'' at the end of clause (vi), by
striking the period at the end of clause (vii) and inserting ``, and'',
and by adding at the end the following new clause:
``(viii) any natural gas gathering line the
original use of which commences with the
taxpayer after the date of the enactment of
this clause.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to subparagraph (E)(vii) the
following new item:
``(E)(viii) ................................................ 22''.
(c) Conforming Amendment.--Clause (iv) of section 168(e)(3)(C) of
the Internal Revenue Code of 1986 is amended by inserting ``and on or
before the date of the enactment of the End Polluter Welfare Act of
2021'' after ``April 11, 2005''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to property placed in service on and after the date of
the enactment of this Act.
(2) Exception.--The amendments made by this section shall
not apply to any property with respect to which the taxpayer or
a related party has entered into a binding contract for the
construction thereof on or before the date of the introduction
of this Act, or, in the case of self-constructed property, has
started construction on or before such date.
SEC. 20. TERMINATION OF LAST-IN, FIRST-OUT METHOD OF INVENTORY FOR OIL,
NATURAL GAS, AND COAL COMPANIES.
(a) In General.--Section 472 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(h) Termination for Oil, Natural Gas, and Coal Companies.--
Subsection (a) shall not apply to any taxpayer that is in the trade or
business of the production, refining, processing, transportation, or
distribution of oil, natural gas, or coal for any taxable year
beginning after the date of enactment of the End Polluter Welfare Act
of 2021.''.
(b) Additional Termination.--Section 473 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:
``(h) Termination for Oil, Natural Gas, and Coal Companies.--This
section shall not apply to any taxpayer that is in the trade or
business of the production, refining, processing, transportation, or
distribution of oil, natural gas, or coal for any taxable year
beginning after the date of enactment of the End Polluter Welfare Act
of 2021.''.
(c) Change in Method of Accounting.--In the case of any taxpayer
required by the amendments made by this section to change its method of
accounting for its first taxable year beginning after the date of
enactment of this Act--
(1) such change shall be treated as initiated by the
taxpayer; and
(2) such change shall be treated as made with the consent
of the Secretary of the Treasury.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of enactment of this
Act.
SEC. 21. REPEAL OF PERCENTAGE DEPLETION FOR COAL AND HARD MINERAL
FOSSIL FUELS.
(a) In General.--Section 613 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(f) Termination With Respect to Coal and Hard Mineral Fossil
Fuels.--In the case of coal, lignite, and oil shale (other than oil
shale described in subsection (b)(5)), the allowance for depletion
shall be computed without reference to this section for any taxable
year beginning after the date of the enactment of the End Polluter
Welfare Act of 2021.''.
(b) Conforming Amendments.--
(1) Coal and lignite.--Section 613(b)(4) of the Internal
Revenue Code of 1986 is amended by striking ``coal, lignite,''.
(2) Oil shale.--Section 613(b)(2) of such Code is amended
to read as follows:
``(2) 15 percent.--If, from deposits in the United States,
gold, silver, copper, and iron ore.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 22. TERMINATION OF CAPITAL GAINS TREATMENT FOR ROYALTIES FROM
COAL.
(a) In General.--Subsection (c) of section 631 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``coal (including lignite), or iron ore''
and inserting ``iron ore'';
(2) by striking ``coal or iron ore'' each place it appears
and inserting ``iron ore'';
(3) by striking ``iron ore or coal'' each place it appears
and inserting ``iron ore''; and
(4) by striking ``Coal or'' in the heading.
(b) Conforming Amendments.--
(1) The heading of section 631 of the Internal Revenue Code
of 1986 is amended by striking ``, coal,''.
(2) Section 1231(b)(2) of such Code is amended by striking
``, coal,''.
(c) Effective Date.--The amendments made by this section shall
apply to dispositions after the date of the enactment of this Act.
SEC. 23. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO OIL
AND GAS INDUSTRY TAXPAYERS RECEIVING SPECIFIC ECONOMIC
BENEFITS.
(a) 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:
``(n) Special Rules Relating to Dual Capacity Taxpayers.--
``(1) General rule.--Notwithstanding any other provision of
this chapter, any amount paid or accrued to a foreign country
or possession of the United States for any period by a dual
capacity taxpayer which is in the trade or business of the
production, refining, processing, transportation, or
distribution of fossil fuel shall not be considered a tax--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable
income tax, or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity
taxpayer pursuant to the generally applicable
income tax imposed by the country or
possession, or
``(ii) would be paid if no amount other
than the amount required to be paid by such
taxpayer under the generally applicable income
tax imposed by the country or possession were
paid or accrued by such dual capacity taxpayer.
Nothing in this paragraph shall be construed to imply
the proper treatment of any such amount not in excess
of the amount determined under subparagraph (B).
``(2) 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--
``(A) is subject to a levy of such country or
possession, and
``(B) receives (or will receive) directly or
indirectly a specific economic benefit (as determined
in accordance with regulations) from such country or
possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) 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.
``(B) Exceptions.--Such term shall not include a
tax unless it has substantial application, by its terms
and in practice, to--
``(i) persons who are not dual capacity
taxpayers, and
``(ii) persons who are--
``(I) citizens or residents of the
foreign country or possession, or
``(II) organized or incorporated
under the laws of the foreign country
or possession.
``(4) Fossil fuel.--For purposes of this subsection, the
term `fossil fuel' means coal, petroleum, natural gas, or any
derivative of coal, petroleum, or natural gas that is used for
fuel.''.
(b) Effective Date.--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.
(c) Special Rule for Treaties.--Notwithstanding sections 894 or
7852(d) of the Internal Revenue Code of 1986, the amendments made by
this section shall apply without regard to any treaty obligation of the
United States.
SEC. 24. INCREASE IN OIL SPILL LIABILITY TRUST FUND FINANCING RATE.
(a) In General.--Section 4611 of the Internal Revenue Code of 1986
is amended--
(1) in subsection (c)(2)(B)--
(A) in clause (i), by striking ``and'' at the end;
(B) in clause (ii), by striking the period at the
end and inserting ``, and''; and
(C) by adding at the end the following:
``(iii) in the case of crude oil received
or petroleum products entered after December
31, 2021, 10 cents a barrel.''; and
(2) by striking subsection (f) and inserting the following:
``(f) Application of Oil Spill Liability Trust Fund Financing
Rate.--The Oil Spill Liability Trust Fund financing rate under
subsection (c) shall apply on and after April 1, 2006, or if later, the
date which is 30 days after the last day of any calendar quarter for
which the Secretary estimates that, as of the close of that quarter,
the unobligated balance in the Oil Spill Liability Trust Fund is less
than $2,000,000,000.''.
(b) Effective Date.--The amendments made by this section shall
apply to crude oil received and petroleum products entered after
December 31, 2021.
SEC. 25. APPLICATION OF CERTAIN ENVIRONMENTAL TAXES TO SYNTHETIC CRUDE
OIL.
(a) In General.--Paragraph (1) of section 4612(a) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) Crude oil.--
``(A) In general.--The term `crude oil' includes
crude oil condensates, natural gasoline, and synthetic
crude oil.
``(B) Synthetic crude oil.--For purposes of
subparagraph (A), the term `synthetic crude oil'
means--
``(i) any bitumen and bituminous mixtures,
``(ii) any oil derived from bitumen and
bituminous mixtures (including oil derived from
tar sands),
``(iii) any liquid fuel derived from coal,
and
``(iv) any oil derived from kerogen-bearing
sources (including oil derived from oil
shale).''.
(b) Regulatory Authority To Address Other Types of Crude Oil and
Petroleum Products.--Subsection (a) of section 4612 of the Internal
Revenue Code of 1986 is amended by adding at the end the following:
``(10) Regulatory authority to address other types of crude
oil and petroleum products.--Under such regulations as the
Secretary may prescribe, the Secretary may include as crude oil
or as a petroleum product subject to tax under section 4611,
any fuel feedstock or finished fuel product customarily
transported by pipeline, vessel, railcar, or tanker truck if
the Secretary determines that--
``(A) the classification of such fuel feedstock or
finished fuel product is consistent with the definition
of oil under the Oil Pollution Act of 1990, and
``(B) such fuel feedstock or finished fuel product
is produced in sufficient commercial quantities as to
pose a significant risk of hazard in the event of a
discharge.''.
(c) Technical Amendment.--Paragraph (2) of section 4612(a) of the
Internal Revenue Code of 1986 is amended by striking ``from a well
located''.
(d) Effective Date.--The amendments made by this section shall
apply to oil and petroleum products received or entered during calendar
quarters beginning more than 60 days after the date of the enactment of
this Act.
SEC. 26. DENIAL OF DEDUCTION FOR REMOVAL COSTS AND DAMAGES FOR CERTAIN
OIL SPILLS.
(a) In General.--Section 162(f) of the Internal Revenue Code of
1986 is amended--
(1) by redesignating paragraph (5) as paragraph (6); and
(2) by inserting after paragraph (4) the following:
``(5) Expenses for removal costs and damages relating to
certain oil spill liability.--Notwithstanding paragraphs (2)
and (3), no deduction shall be allowed under this chapter for
any costs or damages for which the taxpayer is liable under
section 1002 of the Oil Pollution Act of 1990 (33 U.S.C.
2702)''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to any liability arising in taxable years ending
after the date of the enactment of this Act.
SEC. 27. TAX ON CRUDE OIL AND NATURAL GAS PRODUCED FROM THE OUTER
CONTINENTAL SHELF IN THE GULF OF MEXICO.
(a) In General.--Subtitle E of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 56--TAX ON SEVERANCE OF CRUDE OIL AND NATURAL GAS FROM THE
OUTER CONTINENTAL SHELF IN THE GULF OF MEXICO
``Sec. 5901. Imposition of tax.
``Sec. 5902. Taxable crude oil or natural gas and removal price.
``Sec. 5903. Special rules and definitions.
``SEC. 5901. IMPOSITION OF TAX.
``(a) In General.--In addition to any other tax imposed under this
title, there is hereby imposed a tax equal to 13 percent of the removal
price of any taxable crude oil or natural gas removed from the premises
during any taxable period.
``(b) Credit for Federal Royalties Paid.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by subsection (a) with respect to the
production of any taxable crude oil or natural gas an amount
equal to the aggregate amount of royalties paid under Federal
law with respect to such production.
``(2) Limitation.--The aggregate amount of credits allowed
under paragraph (1) to any taxpayer for any taxable period
shall not exceed the amount of tax imposed by subsection (a)
for such taxable period.
``(c) Tax Paid by Producer.--The tax imposed by this section shall
be paid by the producer of the taxable crude oil or natural gas.
``SEC. 5902. TAXABLE CRUDE OIL OR NATURAL GAS AND REMOVAL PRICE.
``(a) Taxable Crude Oil or Natural Gas.--For purposes of this
chapter, the term `taxable crude oil or natural gas' means crude oil or
natural gas which is produced from Federal submerged lands on the outer
Continental Shelf in the Gulf of Mexico pursuant to a lease entered
into with the United States which authorizes the production.
``(b) Removal Price.--For purposes of this chapter--
``(1) In general.--Except as otherwise provided in this
subsection, the term `removal price' means--
``(A) in the case of taxable crude oil, the amount
for which a barrel of such crude oil is sold, and
``(B) in the case of taxable natural gas, the
amount per 1,000 cubic feet for which such natural gas
is sold.
``(2) Sales between related persons.--In the case of a sale
between related persons, the removal price shall not be less
than the constructive sales price for purposes of determining
gross income from the property under section 613.
``(3) Oil or natural gas removed from property before
sale.--If crude oil or natural gas is removed from the property
before it is sold, the removal price shall be the constructive
sales price for purposes of determining gross income from the
property under section 613.
``(4) Refining begun on property.--If the manufacture or
conversion of crude oil into refined products begins before
such oil is removed from the property--
``(A) such oil shall be treated as removed on the
day such manufacture or conversion begins, and
``(B) the removal price shall be the constructive
sales price for purposes of determining gross income
from the property under section 613.
``(5) Property.--The term `property' has the meaning given
such term by section 614.
``SEC. 5903. SPECIAL RULES AND DEFINITIONS.
``(a) Administrative Requirements.--
``(1) Withholding and deposit of tax.--The Secretary shall
provide for the withholding and deposit of the tax imposed
under section 5901 on a quarterly basis.
``(2) Records and information.--Each taxpayer liable for
tax under section 5901 shall keep such records, make such
returns, and furnish such information (to the Secretary and to
other persons having an interest in the taxable crude oil or
natural gas) with respect to such oil as the Secretary may by
regulations prescribe.
``(3) Taxable periods; return of tax.--
``(A) Taxable period.--Except as provided by the
Secretary, each calendar year shall constitute a
taxable period.
``(B) Returns.--The Secretary shall provide for the
filing, and the time for filing, of the return of the
tax imposed under section 5901.
``(b) Definitions.--For purposes of this chapter--
``(1) Producer.--The term `producer' means the holder of
the economic interest with respect to the crude oil or natural
gas.
``(2) Crude oil.--The term `crude oil' includes crude oil
condensates and natural gasoline.
``(3) Premises and crude oil product.--The terms `premises'
and `crude oil product' have the same meanings as when used for
purposes of determining gross income from the property under
section 613.
``(c) Adjustment of Removal Price.--In determining the removal
price of oil or natural gas from a property in the case of any
transaction, the Secretary may adjust the removal price to reflect
clearly the fair market value of oil or natural gas removed.
``(d) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
chapter.''.
(b) Deductibility of Tax.--The first sentence of section 164(a) of
the Internal Revenue Code of 1986 is amended by inserting after
paragraph (4) the following new paragraph:
``(5) The tax imposed by section 5901(a) (after application
of section 5901(b)) on the severance of crude oil or natural
gas from the outer Continental Shelf in the Gulf of Mexico.''.
(c) Clerical Amendment.--The table of chapters for subtitle E is
amended by adding at the end the following new item:
``Chapter 56. Tax on severance of crude
oil and natural gas from the
outer Continental Shelf in the
Gulf of Mexico.''.
(d) Effective Date.--The amendments made by this section shall
apply to crude oil or natural gas removed after December 31, 2021.
SEC. 28. REPEAL OF CORPORATE INCOME TAX EXEMPTION FOR PUBLICLY TRADED
PARTNERSHIPS WITH QUALIFYING INCOME AND GAINS FROM
ACTIVITIES RELATING TO FOSSIL FUELS.
(a) In General.--Section 7704(d)(1) of the Internal Revenue Code of
1986 is amended by inserting ``or any coal, petroleum, natural gas, or
any derivative of coal, petroleum, or natural gas that is used for
fuel'' after ``section 613(b)(7)''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 29. AMORTIZATION OF QUALIFIED TERTIARY INJECTANT EXPENSES.
(a) In General.--Section 193 of the Internal Revenue Code of 1986
is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Amortization of Qualified Tertiary Injectant Expenses.--
``(1) In general.--Any qualified tertiary injectant
expenses paid or incurred by the taxpayer shall be allowed as a
deduction ratably over the 84-month period beginning on the
date that such expense was paid or incurred.
``(2) Mid-month convention.--For purposes of paragraph (1),
any expenses paid or incurred during any month shall be treated
as paid or incurred on the mid-point of such month.''; and
(2) by striking subsection (c) and inserting the following:
``(c) Exclusive Method.--Except as provided in this section, no
depreciation or amortization deduction shall be allowed with respect to
qualified tertiary injectant expenses.''.
(b) Effective Date.--The amendments made by this section shall
apply to expenses paid or incurred in taxable years beginning after the
date of the enactment of this Act.
SEC. 30. AMORTIZATION OF DEVELOPMENT EXPENDITURES.
(a) In General.--Section 616 of the Internal Revenue Code of 1986
is amended to read as follows:
``SEC. 616. AMORTIZATION OF DEVELOPMENT EXPENDITURES.
``(a) In General.--Any expenditures paid or incurred for the
development of a mine or other natural deposit (other than an oil or
gas well) if paid or incurred after the existence of ores or minerals
in commercially marketable quantities has been disclosed shall be
allowed as a deduction ratably over the 84-month period beginning on
the date that such expenditure was paid or incurred.
``(b) Mid-Month Convention.--For purposes of subsection (a), any
expenditures paid or incurred during any month shall be treated as paid
or incurred on the mid-point of such month.
``(c) Exclusive Method.--Except as provided in this section, no
depreciation or amortization deduction shall be allowed with respect to
expenditures described in subsection (a).
``(d) Treatment Upon Abandonment.--If any property with respect to
which expenditures described in subsection (a) are paid or incurred is
retired or abandoned during the 84-month period described in such
subsection, no deduction shall be allowed on account of such retirement
or abandonment and the amortization deduction under this section shall
continue with respect to such payment.''.
(b) Conforming Amendments.--
(1) The item relating to section 616 in the table of
sections for part I of subchapter I of chapter 1 of the
Internal Revenue Code of 1986 is amended to read as follows:
``Sec. 616. Amortization of development expenditures.''.
(2) Section 56(a)(2)(A) of such Code is amended by striking
``616(a) or''.
(3) Section 59(e) of such Code is amended--
(A) in paragraph (2)--
(i) in subparagraph (C), by inserting
``or'' at the end;
(ii) by striking subparagraph (D); and
(iii) by redesignating subparagraph (E) as
subparagraph (D); and
(B) in paragraph (5)(A), by striking ``, 616(a),''.
(4) Section 263(a)(1) of such Code is amended by striking
subparagraph (A).
(5) Section 263A(c)(3) of such Code is amended by striking
``616,''.
(6) Section 291(b) of such Code is amended--
(A) in paragraph (1)(B), by striking ``616(a) or'';
(B) in paragraph (2), by striking ``, 616(a),'';
and
(C) in paragraph (3), by striking ``, 616(a),''.
(7) Section 312(n)(2)(B) of such Code is amended by
striking ``616(a) or''.
(8) Section 381(c) of such Code is amended by striking
paragraph (10).
(9) Section 1016(a) of such Code is amended by striking
paragraph (9).
(10) Section 1254(a)(1)(A)(i) of such Code is amended by
striking ``, 616,''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred in taxable years beginning after
the date of the enactment of this Act.
SEC. 31. AMORTIZATION OF CERTAIN MINING EXPLORATION EXPENDITURES.
(a) In General.--Section 617 of the Internal Revenue Code of 1986
is amended to read as follows:
``SEC. 617. AMORTIZATION OF CERTAIN MINING EXPLORATION EXPENDITURES.
``(a) In General.--Any expenditures paid or incurred for the
purpose of ascertaining the existence, location, extent, or quality of
any deposit of ore or other mineral, and paid or incurred before the
beginning of the development stage of the mine, shall be allowed as a
deduction ratably over the 84-month period beginning on the date that
such expense was paid or incurred.
``(b) Mid-Month Convention.--For purposes of subsection (a), any
expenditures paid or incurred during any month shall be treated as paid
or incurred on the mid-point of such month.
``(c) Exclusive Method.--Except as provided in this section, no
depreciation or amortization deduction shall be allowed with respect to
expenditures described in subsection (a).
``(d) Treatment Upon Abandonment.--If any property with respect to
which expenditures described in subsection (a) are paid or incurred is
retired or abandoned during the 84-month period described in such
subsection, no deduction shall be allowed on account of such retirement
or abandonment and the amortization deduction under this section shall
continue with respect to such payment.''.
(b) Conforming Amendments.--
(1) The item relating to section 617 in the table of
sections for part I of subchapter I of chapter 1 of the
Internal Revenue Code of 1986 is amended to read as follows:
``Sec. 617. Amortization of certain mining exploration expenditures.''.
(2) Section 56(a) of such Code, as amended by section
30(b)(2), is amended by striking paragraph (2).
(3) Section 59(e) of such Code, as amended by section
30(b)(3), is amended--
(A) in paragraph (2)--
(i) in subparagraph (B), by inserting
``or'' at the end;
(ii) in subparagraph (C), by striking the
comma at the end and inserting a period; and
(iii) by striking subparagraph (D); and
(B) by striking paragraph (5) and inserting the
following:
``(5) Dispositions.--In the case of any disposition of
property to which section 1254 applies (determined without
regard to this section), any deduction under paragraph (1) with
respect to amounts which are allocable to such property shall,
for purposes of section 1254, be treated as a deduction
allowable under section 263(c).''.
(4) Section 170(e) of such Code is amended--
(A) in paragraph (1), by striking ``617(d)(1),'';
and
(B) in paragraph (3)(D), by striking ``617,''.
(5) Section 263A(c)(3) of such Code, as amended by section
30(b)(5), is amended by striking ``291(b)(2), or 617'' and
inserting ``or 291(b)(2)''.
(6) Section 291(b) of such Code, as amended by section
30(b)(6), is amended--
(A) in the heading, by striking ``and Mineral
Exploration and Development Costs'';
(B) by striking paragraph (1) and inserting the
following:
``(1) In general.--In the case of an integrated oil
company, the amount allowable as a deduction for any taxable
year (determined without regard to this section) under section
263(c) shall be reduced by 30 percent.'';
(C) in paragraph (2), by striking ``or 617(a) (as
the case may be)''; and
(D) in paragraph (3), by striking ``or 617(a)
(whichever is appropriate)''.
(7) Section 312(n), as amended by section 30(b)(7), is
amended by striking paragraph (2) and inserting the following:
``(2) Intangible drilling costs.--Any amount allowable as a
deduction under section 263(c) in determining taxable income
(other than costs incurred in connection with a nonproductive
well)--
``(A) shall be capitalized, and
``(B) shall be allowed as a deduction ratably over
the 60-month period beginning with the month in which
such amount was paid or incurred.''.
(8) Section 703(b) of such Code is amended--
(A) in paragraph (1), by adding ``or'' at the end;
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph
(2).
(9) Section 751(c) of such Code is amended--
(A) by inserting ``, as in effect on the day before
the date of the enactment of the End Polluter Welfare
Act of 2021'' after ``section 617(f)(2)''; and
(B) by striking ``617(d)(1),''.
(10) Section 1254(a)(1)(A)(i) of such Code, as amended by
section 30(b)(10), is amended by striking ``or 617''.
(11) Paragraph (2) of section 1363(c) of such Code is
amended to read as follows:
``(2) Exception.--In the case of an S corporation,
elections under section 901 (relating to taxes of foreign
countries and possessions of the United States) shall be made
by each shareholder separately.''.
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred in taxable years beginning after
the date of the enactment of this Act.
SEC. 32. AMORTIZATION OF INTANGIBLE DRILLING AND DEVELOPMENT COSTS IN
THE CASE OF OIL AND GAS WELLS AND GEOTHERMAL WELLS.
(a) In General.--Subsection (c) of section 263 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(c) Intangible Drilling and Development Costs in the Case of Oil
and Gas Wells and Geothermal Wells.--Notwithstanding subsection (a),
and except as provided in subsection (i), in the case of any expenses
paid or incurred in connection with intangible drilling and development
costs related to oil and gas wells and wells drilled for any geothermal
deposit (as defined in section 613(e)(2))--
``(1) such expenses shall be allowed as a deduction ratably
over the 84-month period beginning on the date that such
expense was paid or incurred,
``(2) any such expenses paid or incurred during any month
shall be treated as paid or incurred on the mid-point of such
month,
``(3) except as provided in this subsection, no
depreciation or amortization deduction shall be allowed with
respect to such expenses, and
``(4) if any property with respect to which such intangible
drilling and development costs are paid or incurred is retired
or abandoned during such 84-month period, no deduction shall be
allowed on account of such retirement or abandonment and the
amortization deduction under this subsection shall continue
with respect to such payment.''.
(b) Conforming Amendments.--
(1) Section 57(a)(2)(B)(i) of the Internal Revenue Code of
1986 is amended by striking ``263(c) or''.
(2) Section 59(e) of such Code, as amended by sections 30
and 31, is amended--
(A) in paragraph (2)--
(i) in subparagraph (A), by inserting
``or'' at the end;
(ii) in subparagraph (B), by striking the
comma at the end and inserting a period; and
(iii) by striking subparagraph (C); and
(B) by striking paragraph (5).
(3) Section 263A(c)(3) of such Code, as amended by sections
30 and 31, is amended by striking ``263(c),''.
(4) Section 291 of such Code, as amended by sections 30 and
31, is amended by striking subsection (b).
(5) Section 312(n) of such Code, as amended by sections 30
and 31, is amended by striking paragraph (2).
(c) Effective Date.--The amendments made by this section shall
apply to expenditures paid or incurred in taxable years beginning after
the date of the enactment of this Act.
SEC. 33. PERMANENT EXCISE TAX RATE FOR FUNDING OF BLACK LUNG DISABILITY
TRUST FUND.
(a) In General.--Section 4121 of the Internal Revenue Code of 1986
is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``$1.10'' and
inserting ``$1.38''; and
(B) in paragraph (2), by striking ``$.55'' and
inserting ``$0.69''; and
(2) by striking subsection (e).
(b) Effective Date.--The amendments made by this section shall
apply on and after the first day of the first calendar month beginning
after the date of the enactment of this Act.
SEC. 34. TERMINATION OF RENEWABLE ELECTRICITY PRODUCTION CREDIT
ELIGIBILITY FOR REFINED COAL.
Section 45(e)(8)(A)(ii)(II) of the Internal Revenue Code of 1986 is
amended by inserting ``and before the date of enactment of the End
Polluter Welfare Act of 2021'' after ``such taxable year''.
SEC. 35. TREATMENT OF FOREIGN OIL RELATED INCOME AS SUBPART F INCOME.
(a) In General.--Section 954(a) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of paragraph (2), by
striking the period at the end of paragraph (3) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(4) the foreign base company oil related income for the
taxable year (determined under subsection (g) and reduced as
provided in subsection (b)(5)).''.
(b) Foreign Base Company Oil Related Income.--Section 954 of the
Internal Revenue Code of 1986 is amended by inserting after subsection
(e) the following new subsection:
``(g) Foreign Base Company Oil Related Income.--For purposes of
this section--
``(1) In general.--Except as otherwise provided in this
subsection, the term `foreign base company oil related income'
means foreign oil related income (within the meaning of
paragraphs (2) and (3) of section 907(c)) other than income
derived from a source within a foreign country in connection
with--
``(A) oil or gas which was extracted from an oil or
gas well located in such foreign country, or
``(B) oil, gas, or a primary product of oil or gas
which is sold by the foreign corporation or a related
person for use or consumption within such country or is
loaded in such country on a vessel or aircraft as fuel
for such vessel or aircraft.
Such term shall not include any foreign personal holding
company income (as defined in subsection (c)).
``(2) Paragraph (1) applies only where corporation has
produced 1,000 barrels per day or more.--
``(A) In general.--The term `foreign base company
oil related income' shall not include any income of a
foreign corporation if such corporation is not a large
oil producer for the taxable year.
``(B) Large oil producer.--For purposes of
subparagraph (A), the term `large oil producer' means
any corporation if, for the taxable year or for the
preceding taxable year, the average daily production of
foreign crude oil and natural gas of the related group
which includes such corporation equaled or exceeded
1,000 barrels.
``(C) Related group.--The term `related group'
means a group consisting of the foreign corporation and
any other person who is a related person with respect
to such corporation.
``(D) Average daily production of foreign crude oil
and natural gas.--For purposes of this paragraph, the
average daily production of foreign crude oil or
natural gas of any related group for any taxable year
(and the conversion of cubic feet of natural gas into
barrels) shall be determined under rules similar to the
rules of section 613A (as in effect on the day before
the date of enactment of the End Polluter Welfare Act
of 2021) except that only crude oil or natural gas from
a well located outside the United States shall be taken
into account.''.
(c) Conforming Amendments.--
(1) Section 952(c)(1)(B)(iii) of the Internal Revenue Code
of 1986 is amended by redesignating subclauses (I) through (IV)
as subclause (II) through (V), respectively, and by inserting
before subclause (II) (as so redesignated) the following:
``(I) foreign base company oil
related income,''.
(2) Section 954(b) of such Code is amended--
(A) by inserting at the end of paragraph (4) the
following: ``The preceding sentence shall not apply to
foreign base company oil-related income described in
subsection (a)(4).'';
(B) by striking ``and the foreign base company
services income'' in paragraph (5) and inserting ``the
foreign base company services income, and the foreign
base company oil related income''; and
(C) by adding at the end the following new
paragraph:
``(6) Foreign base company oil related income not treated
as another kind of base company income.--Income of a
corporation which is foreign base company oil related income
shall not be considered foreign base company income of such
corporation under paragraph (2) or (3) of subsection (a).''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after the date
of the enactment of this Act and to taxable years of United States
shareholders ending with or within which such taxable years of foreign
corporations end.
SEC. 36. REPEAL OF EXCLUSION OF FOREIGN OIL AND GAS EXTRACTION INCOME
FROM THE DETERMINATION OF TESTED INCOME.
(a) In General.--Section 951A(c)(2)(A)(i) of the Internal Revenue
Code of 1986 is amended--
(1) by adding ``and'' at the end of subclause (III);
(2) by striking ``and'' at the end of subclause (IV) and
inserting ``over''; and
(3) by striking subclause (V).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years of foreign corporations beginning after the date
of enactment of this Act, and to taxable years of United States
shareholders in which or with which such taxable years of foreign
corporations end.
SEC. 37. TERMINATION OF CREDIT FOR CARBON OXIDE SEQUESTRATION.
(a) In General.--Section 45Q of the Internal Revenue Code of 1986
is amended by adding at the end the following:
``(i) Termination.--This section shall not apply with respect to
any qualified carbon oxide captured after the date of enactment of the
End Polluter Welfare Act of 2021.''.
(b) Report.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Secretary of the Treasury, or the
Secretary's delegate, shall submit a report to Congress, to be
made available to the public, which provides the following
information:
(A) The taxpayer identity information of any
taxpayer for which the carbon oxide sequestration
credit under section 45Q of the Internal Revenue Code
of 1986 was allowed for any taxable year following the
enactment of such section.
(B) The total amount of the credit allowed pursuant
to such section to each taxpayer described in
subparagraph (A).
(C) With respect to the amount described in
subparagraph (B), the amount of such credit allowed
with respect to each of the following:
(i) Qualified carbon oxide which was
captured and disposed of by the taxpayer in
secure geological storage and not used by the
taxpayer as described in clause (ii) or (iii).
(ii) Qualified carbon oxide which was
captured and used by the taxpayer as a tertiary
injectant in a qualified enhanced oil or
natural gas recovery project and disposed of by
the taxpayer in secure geological storage.
(iii) Qualified carbon oxide which was
captured and utilized by the taxpayer in a
manner described in section 45Q(f)(5) of the
Internal Revenue Code of 1986.
(2) Exception from rules regarding confidentiality and
disclosure of returns and return information.--Section 6103(l)
of the Internal Revenue Code of 1986 is amended by adding at
the end the following:
``(23) Disclosure of return information for public report
on carbon oxide sequestration credit.--The Secretary may
disclose taxpayer identity information and return information
to the extent the Secretary deems necessary for purposes of the
report issued pursuant to section 37 of the End Polluter
Welfare Act of 2021.''.
SEC. 38. POWDER RIVER BASIN.
(a) Designation of the Powder River Basin as a Coal Producing
Region.--As soon as practicable after the date of enactment of this
Act, the Director of the Bureau of Land Management shall designate the
Powder River Basin as a coal producing region.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Director of the Bureau of Land Management shall submit to
Congress a report that includes--
(1) a study of the fair market value and the amount and
effective rate of royalties paid on coal leases in the Powder
River Basin compared to other national and international coal
basins and markets; and
(2) any policy recommendations to capture the future market
value of the coal leases in the Powder River Basin.
SEC. 39. STUDY AND ELIMINATION OF ADDITIONAL FOSSIL FUEL SUBSIDIES.
(a) Definition of Fossil-Fuel Production Subsidy.--In this section,
the term ``subsidy for fossil-fuel production'' means any direct
funding, tax treatment or incentive, risk-reduction benefit, financing
assistance or guarantee, royalty relief, or other provision that
provides a financial benefit to a fossil-fuel company for the
production of fossil fuels.
(b) Report to Congress.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Treasury or the Secretary's
delegate (referred to in this section as the ``Secretary''), in
coordination with the Secretary of Energy, shall submit to Congress a
report detailing each Federal law (including regulations), other than
those amended by this Act, as in effect on the date on which the report
is submitted, that includes a subsidy for fossil-fuel production.
(c) Report on Modified Recovery Period.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in coordination with the
Commissioner of Internal Revenue, shall submit to Congress a
report on the applicable recovery period under the accelerated
cost recovery system provided in section 168 of the Internal
Revenue Code of 1986 for each type of property involved in
fossil-fuel production, including pipelines, power generation
property, refineries, and drilling equipment, to determine if
any assets are receiving a subsidy for fossil-fuel production.
(2) Elimination of subsidy.--In the case of any type of
property that the Secretary determines is receiving a subsidy
for fossil-fuel production under such section 168, for property
placed in service in taxable years beginning after the date of
such determination, such section 168 shall not apply. The
preceding sentence shall not apply to any property with respect
to a taxable year unless such determination is published before
the first day of such taxable year.
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End Polluter Welfare Act of 2021
#2102 | HR Congress #117
Policy Area: Energy
Subjects: Accounting and auditingAdministrative law and regulatory proceduresAdvanced technology and technological innovationsAgricultural prices, subsidies, creditAir qualityAlternative and renewable resourcesBusiness expensesBusiness investment and capitalCapital gains taxClimate change and greenhouse gasesCoalCompetitiveness, trade promotion, trade deficitsCongressional oversightCorporate finance and managementDepartment of EnergyDepartment of the InteriorDepartment of the TreasuryElectric power generation and transmissionEnergy prices
Last Action: Referred to the Subcommittee on Commodity Exchanges, Energy, and Credit. (5/26/2021)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text