summary
Introduced
07/30/2015
07/30/2015
In Committee
07/30/2015
07/30/2015
Crossed Over
Passed
Dead
01/03/2017
01/03/2017
Introduced Session
114th Congress
Bill Summary
Close Big Oil Tax Loopholes Act 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, refining, processing, 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. Provides for compliance of the budgetary effects of this Act with the Statutory Pay-As-You-Go Act of 2010.
AI Summary
This bill, the "Close Big Oil Tax Loopholes Act," aims to reduce the federal budget deficit by eliminating or limiting several tax benefits for major integrated oil companies, defined as companies with over $1 billion in annual gross receipts and significant oil production, or their successors. Specifically, it would restrict the foreign tax credit for companies that are considered "dual capacity taxpayers" (meaning they pay taxes to a foreign country while also receiving specific economic benefits from that country), disallow deductions for income related to oil and gas production and refining, limit deductions for intangible drilling and development costs (which would instead be amortized over 60 months), eliminate the percentage depletion allowance for oil and gas wells, and disallow deductions for qualified tertiary injectant expenses. Additionally, the bill repeals royalty relief for certain deep water and deep gas production in the Gulf of Mexico. Any increased revenue generated by these changes will be used to reduce the federal budget deficit or debt, and its budgetary impact will be tracked according to the Statutory Pay-As-You-Go Act of 2010.
Committee Categories
Budget and Finance
Sponsors (19)
Bob Menendez (D)*,
Barbara Boxer (D),
Ben Cardin (D),
Dick Durbin (D),
Dianne Feinstein (D),
Al Franken (D),
Amy Klobuchar (D),
Patrick Leahy (D),
Ed Markey (D),
Jeff Merkley (D),
Barbara Mikulski (D),
Patty Murray (D),
Bill Nelson (D),
Gary Peters (D),
Jack Reed (D),
Chuck Schumer (D),
Jeanne Shaheen (D),
Debbie Stabenow (D),
Sheldon Whitehouse (D),
Last Action
Read twice and referred to the Committee on Finance. (on 07/30/2015)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...