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Bill > HR2956


US HR2956

US HR2956
End Welfare for Big Oil Act of 2013


summary

Introduced
08/01/2013
In Committee
08/09/2013
Crossed Over
Passed
Dead
01/03/2015

Introduced Session

113th Congress

Bill Summary

End Welfare for Big Oil Act of 2013 - Amends the Internal Revenue Code to limit or repeal certain tax benefits for major integrated oil companies (defined as companies with annual gross receipts over $1 billion and an average daily worldwide production of crude oil of at least 500,000 barrels or certain successors in interest of such companies), including: (1) the foreign tax credit for companies that are dual capacity taxpayers; (2) the tax deduction for income attributable to the production, transportation, or distribution of oil, natural gas, or primary products thereof; (3) the tax deduction for intangible drilling and development costs; (4) the percentage depletion allowance for oil and gas wells; and (5) the tax deduction for qualified tertiary injectant expenses. Amends the Energy Policy Act of 2005 to repeal royalty relief (suspension of royalties) for: (1) natural gas production from deep wells in shallow waters of the Gulf of Mexico; and (2) deep water oil and gas production in the Western and Central Planning Area of the Gulf (including the portion of the Eastern Planning Area encompassing whole lease blocks lying west of 87 degrees, 30 minutes west longitude). Dedicates any increased revenue generated by this Act to the reduction of a federal budget deficit or the federal debt.

AI Summary

This bill, the "End Welfare for Big Oil Act of 2013," aims to eliminate certain tax benefits and royalty relief for major integrated oil companies, defined as companies with over $1 billion in annual gross receipts and significant oil production, with the goal of reducing the federal budget deficit or debt. Specifically, it proposes to limit or repeal the foreign tax credit for companies that are considered "dual capacity taxpayers" (meaning they pay taxes to a foreign country and also receive economic benefits from it), the tax deduction for income related to oil and natural gas production, transportation, or distribution, the deduction for intangible drilling and development costs (expenses incurred in preparing a well for production), the percentage depletion allowance for oil and gas wells (a deduction based on a percentage of the value of oil or gas extracted), and the deduction for qualified tertiary injectant expenses (costs associated with enhanced oil recovery methods). Additionally, the bill would repeal royalty relief, which suspends royalty payments, for certain deep water and deep gas production in the Gulf of Mexico. Any increased revenue generated by these changes would be dedicated to reducing the federal deficit or debt.

Committee Categories

Agriculture and Natural Resources, Budget and Finance

Sponsors (9)

Last Action

Referred to the Subcommittee on Energy and Mineral Resources. (on 08/09/2013)

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