Vote Smart's Synopsis:

Vote on a motion to advance a bill for consideration that amends tax laws relating to oil companies.

Highlights:

• Defines a "dual capacity taxpayer" as a person who is subject to a levy of another country or possession and who receives a specific economic benefit from that country or possession (Sec. 101).

• Defines a "major integrated oil company" as a producer of crude oil that has an average daily worldwide output of 500,000 barrels in a taxable year, and had gross receipts of $1 billion in its last taxable year ending in 2005 (Sec. 101).

• Prohibits any dual capacity taxpayer that is a major integrated oil company from receiving a foreign tax credit on any amount either paid or accrued to a foreign country or United States possession (Sec. 101).

• Prohibits a major integrated oil company from receiving a tax deduction by taking into account the gross receipts from the production, transportation, or distribution of oil, natural gas, or primary products thereof (Sec. 102).

• Prohibits a major integrated oil company from receiving tax deductions for intangible drilling and development costs in the case of wells drilled for any geothermic deposit (Sec. 103).

• Reduces the percentage depletion allowance to 0 for oil and gas wells of a major integrated oil company (Sec. 104).

• Prohibits a major integrated oil company from receiving tax deductions for "tertiary injectant expenses" (Sec. 105).

• Repeals incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico and royalty relief for deep water production (Sec. 201).

• Requires the net amount of any savings realized by this act to be deposited in the Treasury and used for reduction of the federal budget deficit or, if there is no budget deficit, used for reduction of the federal debt (Sec 301).

Full Bill Text

Full Bill Text